What Contract Law Is Concerned With A Contract

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Formative Assessment Essentially, what contract law is concerned with is whether there is a contract in the first place. A contract is formed when there is a meeting of minds. There needs to be an offer and an acceptance , with the mirror principle applied- one must mirror the other precisely , otherwise there is no contract. It is also important to be able to determine between offers and invitation to treat. Offer and acceptance need to be communicated, and with offer, there needs to be an intention to create legal relations. When dealing with the case we were presented with to advise Francis, we must firstly determine where there is a valid contract. We are determining which party has a contract and is in breach of it with Harry.…show more content…
However, the postal rule only applies to acceptance, hence, Harry would not be able to claim Francis is in breach of contract. The risk of the postal rule falls on the offer. Another way how Harry might want to use the postal rule for his benefit would be to argue his invitation to treat was an offer, and the letter Francis posted was an acceptance. If in fact this was the case, which, as discussed is not, the postal rule would apply, if the acceptance mirrored the offer. However, if we tried to use this, somewhat fallacious reasoning, there is still no contract. If Harrry’s reply was an offer, than when Francis replied with a lower demand, it cannot be regarded as acceptance, as it does not mirror the offer. This would be a counter-offer , which will be discussed in greater detail later on. Back to the postal rule, it would not apply and Harry again does not have a case. This is because the offer and acceptance don’t mirror each other, as he attempted to deliver 20 cases instead of 15, but as was discussed, Harry would not have a strong case, if he tried to claim his invitation to treat was an offer. Now we could proceed in clarifying Francis the contractual relationship Harry has with Indra. There is a contract- it is clearly stated that Harry accepts an offer from Indra to supply all the cases he has, and at what price. The offer and acceptance are communicated and mirror

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