Assignment 1 Business Law Assignment

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Lincoln College BA (Hons) Business and Management Level 4 Business Law Assignment 1 Contract Law 15th November 2017 Student ID- 293927 Word count- 1728 "A contract is a legally binding or valid agreement between two parties. The law will consider a contract to be valid if the agreement contains all of the following elements: Offer and acceptance; an intention between the parties to create binding relations; consideration to be paid for the promise made; legal capacity of the parties to act; genuine consent of the parties; and legality of the agreement. An agreement that lacks one or more of the elements listed above is not a valid contract." (The Law Handbook, 2017). Info Barrel (2017) explains that consideration in an essential element in a contract as it forms the promise made by a party in which they can acquire something but must give something in exchange to the other party. The six-year contract between Randall PLC and Hopkirk PLC started in January 2013 for the sale and delivery of 1,000 widgets per month at £3,000 a month. Randall PLC then asked Hopkirk PLC to move the delivery to every other month with 2,000 widgets, Hopkirk agrees and the contract continues on this basis. Hopkirk PLC is in financial difficulties and notices the market price of widgets has dropped and asks if Randall PLC will accept £2,000 instead of £3,000 a month. Randall PLC agrees to this but only on the promise that Hopkirk will extend the existing contract when it
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