Why Law Has A Bigger Impact On Business Than Contract Law

1826 WordsApr 17, 20158 Pages
Few areas of law have a bigger impact on business than contract law. When people conduct commerce of any kind they generally want to have legal protection to ensure that the other party will deliver, that’s where contracts come in. First we will discuss the elements of a contract, and why contracts are important in business. Then, court cases will be examined to display the importance of the elements of a contract. Finally we will discuss why the layman has a general fear of contracts, and some remedies they can use to protect themselves. Overall, a properly formed contract can protect anyone from a bad deal. The process of contract formation begins with an offer, which is a concrete and definite offer to do something. Offers are not the mere intent to provide another party with something; they will state what one party will provide to another, in clear language. Offers are not to be confused with invitations, which begin negotiations, but cannot be accepted as a legally binding offer. Once the offer is extended to another party they have the opportunity to accept or reject the offer. When a party attempts to change the terms of an offer, their proposal becomes a counteroffer. After an acceptable offer is determined it must be accepted exactly as offered. Contract acceptance can be confirmed in a variety of ways: verbally, written or inferred. An inferred acceptance occurs when action clearly indicates acceptance, such as allowing the performance of the offer outlined in the

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