The Legal Issue Of Sam And Matt

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STEP 1: Identify the legal issue The legal issue is whether agreement of Sam and Matt is valid to form a legally enforceable contract. STEP 2: Explain the rule(s) of law with reference to relevant authority. To form a legally enforceable contract, agreement, intention and consideration are the three main elements. If one or more of the elements are not established then no contract is deemed to exist at law (Monterosso 2014). The elements of intention to be legally bound and of agreement are assumed to exist. The element that needs to be discussed here is whether a valid agreement exists between Sam and Matt. An agreement is only legally enforceable if the parties enter into a valid agreement where a valid offer is made and acceptance is…show more content…
An exception to the general rule is the postal acceptance rule which states if it is contemplated that post may be a means by which the offer is accepted, the offer will be deemed accepted at the time a properly addressed letter is put into the hands of the post office, and a binding contract is formed at the time when and the place where the letter of acceptance is posted (Duperouzel, 2014, p49). This was seen in the case of Adams v Lindsell (1818) in which Lindsell wrote to Adams offering to sell him some wool and asked for a reply 'in the course of post '. The letter was delayed in the post. On receiving the letter, Adams posted a letter of acceptance the same day. After Adams had posted the letter of acceptance, but before Lindsell had received it, Lindsell on-sold the wool to a third party. Adams sued for breach of contract. The court had to decide whether the agreement between Adams and Lindsell reached prior to Lindsell on selling the wool to the third party. The court held that the agreement was made at the moment Adam posted the acceptance letter to Lindsell regarding to the postal acceptance rule. Furthermore, Lindsell who asked for reply 'in the course of post‘, was in no position to refuse that the method of acceptance used by Adams was effective. The postal acceptance rule is not applicable for instantaneous methods of communication, which are email, fax, telephone and facsimile. However, if both parties agreed upon electronic communication
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