Business Law 100

There is consideration present here since according to the ‘Doctrine of Consideration, ' promises will legally enforceable if you ‘ask for something in return for ' something else. Here, Ken asks for £12,000 in return for his work to build Jack 's conservatory. Therefore, when Jack ‘accordingly contacts Ken to say that he will be employing him to do the building work, ' Jack has accepted Ken 's offer, and both parties have entered into a legally binding contract. Jack 's statement qualifies as an acceptance since there is correspondence between the two parties, whereby both the offer and acceptance are on the same terms; there is nexus, where the acceptance is in response to the offer; and finally, there is communication on both parts. Moreover, when Jack states that he will accept the ‘most competitive ' tender, he could argue that the recommendation from ‘Barnie, ' his ‘neighbour ' who expresses that ‘Ken is an excellent builder ' constitutes Jack 's meaning of the ‘most competitive. ' However, this is not relevant unless Bob wishes to argue in court that Jack 's proposal was indeed an invitation to tender, which constitutes an offer, as according to Harvela.

In order to advise Billy in whether he is entitled to the extra $20,000 and a share in the farm, the key facts and relevant issues must be examined to determine if the elements of a legally binding contract exists. Whether there was an agreement and intention to create legal relations between the two will be used to determine whether Choy has breached a contract between the two. If a contract is found to

A bilateral contract comes into existence at the moment promises are exchanged. True, “promise for a promise”

6. Assuming, arguendo, that this e-mail does constitute an agreement, what consideration supports this agreement?

However, the following are the vital steps contained in each contract. Also, without them the contract would not be considered valid. First, an offer entails a statement by one party who is willing to make a contract under certain conditions keeping in mind that it shall be accepted. Second, acceptance gives a picture of the agreement to the terms offered. According to Rogers (2012), acceptance is considered valid when, (1) it is made by an individual to whom the offer was directed, (2) it is unequivocal, and (3) it is communicated to the offeror. Third, consideration encompasses the terms of the contracts between the parties. Therefore,

An offer is a representation of willingness to contract on certain terms. Offer must be made with an intention and it will become binding upon acceptance. Some offers anticipate not another promise being returned in exchange, however, the performance of an act or forbearance from taking action. The person is making an offer is called the offeror, and the person to whom the offer is made. It called offeree. A communication will be treated as the offer if it stimuli the terms on which the offeror is prepared to make a contract such as the price of goods for sale, and it gives a clear indication that the offeror intends to be bound by those terms if they are accepted by the offeree.

This case is very interesting. First let’s see what considerations means in business law. In order to meet the criteria as consideration, three rules need to be present: 1) Both parties must receive something of value; 2) If someone makes a promise to give something of value, this signifies a consideration; and 3) The two parties involved must come to an agreement of terms in regard to what items of value are exchanged in the deal (Beatty, 2008).

Mutual agreement – there must be a meeting of the minds between parties. There should be an offer and an acceptance. There should be an agreement to enter into the contract

whether the parties have engaged in the process of offer and acceptance that incorporates to an agreement;

In the consideration of the mutual benefits and responsibilities specified in this agreement, the receipt and sufficiency of which consideration is hereby acknowledged, both parties agree to this agreement as follows:

The contract involved as stated, an “offer”, which is a communication of willingness to carry out an action on certain circumstances, which are made with the purpose that an compulsory agreement will exist once it is accepted, and an ‘acceptance’ which is the ultimate and complete agreement to all of the terms of the offer.

This essay discusses the legal provisions relating to consideration, what constitutes “nominal” and “sufficient” consideration, and whether there is limited regulation in Australian contract laws as to when the consideration is regarded as sufficient.

In order for a contract to be legally binding, one of the essential elements is an intention of both parties to enter into a contract

iv. During negotiation “business issues” took the centre stage and legal issues were to be addressed later. It shows mutual trust and focus on goals.

To have a binding contract there must be vital components for a valid contract in English law, an offer and acceptance are crucial, and in the conditions from the question; one party has to make an offer which is then accepted by the other party. A contract is made to tailor the relationship between two parties, in our case between sally and Ron and Julie; and “the factor which distinguishes contractual relationship from other obligations is that they are based on the agreement of the parties” Trietel. This may suggest that a contract was formed when Ron accepted sally’s term of answering the questions and also coming to the event.