Name- Paras Gupta Module Name- International Business Law (LWO2999) Module Teacher- Mrs. Lilian Miles Student Number- M00432962 Word Count- 2021 words Introduction 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. Contract The word ‘Contract’ in simple words can be explained as an agreement made between two or more parties which tends to be legally binding. Contracts are further classified into three types: a) Verbal contracts/Oral contracts b) Written contracts c) Special contracts or contracts made by deeds In order to …show more content…
Agreement itself is formed when there is: Offer & Acceptance Offer An offer is the first and foremost element of a contract, proposed by the Offeror. It is an expression of willingness to form a contract on certain conditions/terms, formed with a purpose that it shall become a binding once accepted by the person to whom it is addressed i.e. Offeree. The procedure of offer and acceptance might take in three different ways: a) Unilateral contract: offer of an act for a promise b) Unilateral contract: offer of a promise for an act c) Bilateral contract: offer of a promise for an act An offer is a different term from invitation to treat, which means that the party merely inviting the others to join the offer, which later on he is free to accept or reject. Acceptance An acceptance is the final stage of an agreement where the offer proposed is accepted by the offeree in order to bind themselves in the contract which has legal standing. Rules of acceptance In order to form a valid binding contract the acceptance done by the offeree must match the exact offer. But, if the offeree wants to add any new term in the offer or if it is different from the term offer, then the offeree can in his reply cannot make the acceptance and is called counter offer. Once counter offer is made the main offeror is free to
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There are three main elements for the formation of a legally binding contract, intention, agreement and consideration. The requirement that requires discussion here is the existence of an agreement by the parties to enter into a legally binding contract.
An offer is the manifestation of the willingness to enter into bargain, so that the offeror understands that he may enter into the bargain freely and that assent to the bargain will complete the transaction. Bill presented an offer to Sara to
An offer is a precise assure and a precise demand. An offer is a look of readiness to perform something that is if followed by the unqualified acceptance of another being. It relates to my example because once agreement is made of how much amount I will pay because then I have to do that.
A contract is an agreement that creates obligations that are enforceable by the law. A contract can either be written or spoken. There are elements to a contract that make it valid and binding. This is defined as a clear manifestation of willingness to enter an agreement made by another person with full understanding that their assent to the bargain is an invitation and is concluded. As to whether there was an offer in this case, yes there is an offer. When the salesman offered the buyers time for a test drive and they finally chose and agreed to buy the blue car it was a clear offer.
A contract is a legal document that states and clarifies a formal agreement between two different people or groups. This implies that an agreement between parties must have a strong backing by law. The following are therefore required for a contract to be mandatory for all participants involved. These elements in a contract prove whether the contract is regarded credible or not credible: The objective is to build a legal relationship, offer and acceptance, consideration, capacity to contract and legality.
An offer allows the person or business to whom the offer is made to, to reasonably expect that the offering party is willing to be bound by the offer based on the terms proposed thus these terms of an offer must be define as well as certain.
A contract comes into existence with the initiation of an offer made by one party, which in turn should be ‘accepted’ by the other party. The element of offer and acceptance thus initiate the legal process of the formation of a valid and binding contract. The significance of acceptance with respect to the contract laws stems from the fact that the proposed offer must be accepted by the promisee and forthwith be communicated to the promisor. Together offer and acceptance create a promise which can
Offer – to form a contract there must be an offer by one party. It is a definite and clear statement of willingness to be bound on stated terms without further consultations. Offer can be in written or oral form but it is not effective if it is not being communicated to the offeree.
Under Common Law, for a contract to exist, three elements must be present: an offer, an acceptance and a consideration. The notions of offer and acceptance under Common Law are not fundamentally different from those in French contract law, although their effects may differ. The offer indicates the willingness of a party to enter into a bargain, and the acceptance reflects the agreement of the other party to the offer.
Contracts can be defined through promises between parties that are enforceable through law. We know that both parties agreed verbally, an oral agreement was made to hold the car for one day with a hundred-dollar deposit and Stan agreed to the terms that the deposit was refundable. Contracts can be in in two form which are written or oral. Based on the elements of contracts, many fundamentals factors are considered mandatory to form a contract that is binding on parties and are primarily outlined through the following:
Capable of acceptance by the offeree, offeree is the person receiving the offer. A valid agreement must be constituted by Offer and Acceptance. For the responses to an offer, everyone can accept
Acceptance is a final and unqualified expression of consent to the terms of an offer. An offer may only be accepted by the person to whom it is made unless an agent is authorized to accept on behalf of that person. In addition, an acceptance must be made in the manner requested or authorized by the offering party. If the party to whom the offer is made
The next step in contracting an agreement is to either accept the offer being put on the table or if the party does not agree then they enter a counteroffer. A counteroffer, is considered a non acceptance but, instead a response to an offer that modifies the original offer. Then the original offering party has the choice to accept, counteroffer back, or deny the offer which would mean the contract would be no more. If the offer is accepted, then the next step will be mutuality.