Law of Contract Essay

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Law of Contract A contract is a legally binding enforceable agreement between two or more parties. Where an issue of a breach of contract arises in court, the court has to decide whether or not a contract has been made. To do this they must establish whether an offer has been made or whether it was simply an invitation to treat. If an offer has been made the courts must then look to establish whether there has been an acceptance. An offer is a statement of willingness by one party to enter into a contract on certain terms made with the intention that it shall become binding on acceptance. Whereas an invitation to treat is an expression of willingness…show more content…
[1955] 2 QBD 327, and it is received at the place where the offeror happens to be. This comes from the case of Brinkibon Ltd v Stahag Stahl [1983] 2 AC 34. As there was no paper in the fax machine, Jason never received this bid meaning that acceptance has not taken place. At 10am on the 23rd November Martin handed a bid of £25,000 into the store. This acceptance was communicated by his conduct, that is, he handed in the bid to the store. This was established as a valid method of acceptance in the case of Carlill v Carbolic Smoke Ball Co. [1893] 1 QB 256. This acceptance was brought to the attention of the offeror and Jason is aware of the acceptance. David phoned Jason and left a message on his answering machine making a counter offer. A counter offer rejects the original offer and introduces new terms to the proposed contract which is then capable of acceptance or rejection. This principle is illustrated in the case of Hyde v Wrench (1840) 3 Beav 334. There is a general rule in acceptance that acceptance must be communicated to the offeror and is only validly communicated when it is brought to the intention of the offeror. David stated that if he did not hear anything from Jason he would assume he accepted the

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