Unit 21 P1 and P2

3200 Words Jan 11th, 2013 13 Pages
– UNIT 21,
P1 IDENTIFY THE LEGAL CRITERIA FOR OFFER AND ACCEPTANCE IN A VALID CONTRACT
AND
P2 EXPLAIN THE LAW IN RELATION TO THE FORMATION OF A CONTRACT IN A GIVEN SITUATION

In this report I will be focussing on certain factual evidence, relating to the valid requirements of a contract for Dial-A-Phone. For a contract to be legally binding there must be certain legal terms and aspects that must be present – these involve: * Offer * Acceptance * Capacity * Consideration
These are the 4 main elements of a contract, and a contract will not be valid without these.

The assignment will provide detailed information using case laws and a report around the main elements of a contract. These case laws will include: * Carlill vs
…show more content…
Therefore all parties that trade with Dial A Phone will operate using the same standard form contract.
Another benefit of using standard form contracts within Dial A Phone is that for companies like the retailer, who change their suppliers often – the contracts can take a while to draw up and be approved, therefore by using a standard form contract the business works along the same guidelines for each supplier.

The disadvantages of standard form contracts for Dial A Phone include that their contracts can appear one sided to other parties, or as if the contract has been set up only to benefit the company.
Another disadvantage is that there are certain statutory controls that regulate standard form contracts, and Dial A Phone will have to keep up to date with these to ensure that they are not breaking any laws or rules. Also if the business uses terms that are unfair, they may be declared invalid and unenforceable by the business.
Following this a business may become too attached to working alongside a standard form contract and miss out on negotiations that individual contracts for certain customers may bring more revenue and custom into the business.
Before the contract is entered into, the business must make the other party aware of the terms that it is setting out – therefore they can see what they are entering into and decide what is right for their business, to

More about Unit 21 P1 and P2

Open Document