How Much Is Brie Required Pay Kelvin For The Fridge? Essay

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.

i. Virtually instantaneous  general rule should apply (ie. contract is formed when the offeree’s acceptance is received by the offeror; per Lord Wilberforce in Brinkibon)4;

A contract is formed when an offer by one party is accepted by the other party. Consideration is the price paid for the promise of the other party. The price must be something of value, although it need not be money. Consideration may be some right, interest or benefit going to one party or some, losses or responsibility given, suffered or undertaken by the other party.

The parties did have a contract for exclusive negotiation rights as stated in the case scenario. Big Time Toymaker (BTT) paid Chou $25,000 for a 90-day period of exclusivity, thus prohibiting Chou from soliciting or entertaining offers from other parties. The agreement stipulated that unless it was written no distribution contract existed. Prior to the 90-days elapsing, the parties reached an oral agreement and BTT sent Chou an e-mail titled “Strat Deal” covering the key terms of the distribution agreement reaffirming the oral agreement. This e-mail does not constitute a contract for several reasons. First, this was part of the negotiation process and Chou failed to draft the contract to “memorialize" the

When it comes to commercial transaction, it is generally presumed that the contracting parties must have the intention to create a legal binding contract. This simply means that if the parties signed a contract for business related activities, then in case the other party fails to fulfill the contractual provision then the other party will be able to sue the other party.

Consideration is a promise or performance that the promisor demands as the price of the promise. Past consideration is something that has been performed in the past and which, therefore, cannot be consideration for a promise made in the present. Promises made to another based on moral obligation lack consideration and are not enforceable. Services performed by one family member on behalf of another family member are presumed to have been rendered in obedience to a moral obligation without expectation of consideration. An example of past and moral consideration would be the hypothetical we are discussing. A binding contract does not exist between Gerwin and Baker because the element of consideration is missing. The consideration for Gerwin's

The two elements that make up adequate consideration are legally sufficient value and bargain-for-exchange. Legal value is when something valuable must be given to the person that performed a performance and example of this would be if someone offered me two hundred dollars to fix their car. Bargained-for-exchange is an example of this is if I mow my lawn and my land lords lawn very often then we could agree on that I don’t have to pay for rent for that month.

There must be agreement in an enforceable contract. An offer is present if it appears to the reasonable person, in the position of the offeree, that an offer was intended. After Brie asked Kelvin for a quote, he replied with a quotation for $15000 including installation and delivery by 31 July 2016. He did not express to Brie that ‘I may be prepared to sell the fridge to you’ which conveys that he was not inviting her to negotiate for a contract. Rather, the reasonable person would view Kelvin’s email and act of ‘ordering’ the fridge as an indication that he intended to make an offer to sell and not an invitation to treat.

An Invitation to Treat is an expression of intent to negotiate; it is not in itself an offer and cannot bind the parties into legal relations. David's letter may be regarded as an advertisement informing Michelle of his merchandise. The 'bargain price' of £500 may be perceived by the court as a mere reserve price, thereby nullifying any claim by Michelle of breach of contract. One could refer to the case of Harvey v Facey of 1893 where, similarly, a salesman informs the claimant, through the means of a telegram, of the price of a piece of land he intends to sell. The defendant writes: 'Lowest price for Bumper Hall Pen £900.'

In the article “Consideration - in Acceptance of Contract”， this support Robert’s (2015) evidence that if an act is performed then a subsequent promise to pay by reference to that act is not enforceable as the consideration was past. Other that, he also noted that if there was an implication; the past promise to pay is enforceable.

In the formation of contracts two elements are vital. Firstly, the "offer," an indication by one person prepared to contract with another,

Acknowledging the impossibility to enforce all promises, it is stated that the crux of contractual relationships should be seriously intended if there is intention of the parties to create a legal relationship.

Contract law is a fundamental concept of relational contract theory, contracts play an important role in business and has always been an important topic for discussion in sociology, economy, commercial studies, and other sciences, though the term “contract” can have various meanings, it is most often used to denote methods of conducting exchanges, it implies planning the bargain with careful forecasting of its potential consequences and also the use of legal sanctions to ensure the success of the exchange or compensate for its failure. However, contract should not be equaled to the exchange procedure itself. It also should not be applied exclusively to written agreements and documents that accompany the transaction.

In the day to day activities of the business, Parties often face some problems in terms of transactions. Sometimes these transactions are violated because of offenses committed by one of the parties. However a contract is formed in order to solve these issues.

In the era of globalization, business law is a common study for people today as commerce has become our trend in the worldwide. In this report, we will mainly focus on the main component of the law of contract which is consideration. Besides, we also will briefly explain the principles of offer and acceptance of offer in our case study. In this report, the principles of consideration consist of four elements which are consideration must be sufficient and need not be adequate, consideration need not move from the promisee, part payment of debt as satisfaction of a full debt, and past consideration is valid consideration. Moreover, we also have made a depth-research on principles of consideration with a several law cases which can be regarded to each principle. Furthermore, we also will highlights and details the principles in the law cases with a few factual statements which have been proven in famous law books in our country. This research definitely will help us to know more details about business law in our country.