Overview of Business Law

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BUSINESS LAW 7 Business Law Introduction Contracts are agreements, which can be made orally, or in writing, the agreements constitute of offer and acceptance. When two or more parties agree through offer and acceptance, and provide consideration, they create a legal relationship, which is legally binding and actionable by the law of contract. When Peter places an advertisement in the local paper, he gives information of the Rolls Royce, which anyone can make an offer and when accepted by Peter it amounts to fulfillment of a contract. Rooke v Dawson- an advertisement is not an offer because they lead to further bargaining. In this case, advertisement that a scholarship examination will be held, was not held to be an offer to a candidate who obtained the highest marks. Laura calls Peter and makes an offer of buying the Rolls at $20, 000; the offer is accepted conditionally by Peter. Peter accepts the offer under a condition that she would pay through internet banking. Jonnes v Daniel- where there are conditions on payment, documents and date of completion. Terms do not give rise to any immediate enforceable contract, unless the conditions are fulfilled. Modification of terms can also be seen to amount to a counteroffer, when Peter accepts to buy the car only when certain conditions are fulfilled. Laura accepts Peter's conditions, but she also gives another condition which peter accepts; when he says he will write a letter of acceptance and posts it to her. The
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