Unit 21 P1

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Importance of Contracts & Business Law in a Business Unit No. 21: Aspects of Contract and Business Law Mr. Irshad Ahmed Alvi Date Submitted: 08/23/2016 Carl Loraine Cruz 20154176 The organization that I chose for this assignment is Zara HOME. CONTRACT: FACTS: TASK 1 (P1, P2, P3, M1) In this task I will explain when and why the contract came into existence. Contract comes into existence when both parties (offeror and offeree) have agreed terms in negotiations. The contract becomes binding when there is an agreement from both sides. It is not effective until there is communication. A contract is legally binding in a court law and an agreement between two or more parties. a contract can be written or verbal. A written contract is an agreement by two or more parties on a printed file that has been signed by both of the parties while verbal contracts are agreement which have been agreed by verbal statement. Written contracts are legally binding and it is easier to implement than verbal contracts. It is better that the business arrangements are in a written contract to avoid facing problems when you are trying to prove a contract existed.…show more content…
So, here are the four essential elements of a contract: 1. 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. An offer can be discontinued by the
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