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I will be identifying the legal criteria for offer and acceptance in a valid contract. Case study examples.

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Introduction

´╗┐Bader SherbajiUnit 21 ? Assignment 1Task 1 & 2 In the first task of my assignment I will be identifying the legal criteria for offer and acceptance in a valid contract. Then for the second task I will explain the law in relation to the formation of a contract in the above situation. Offer: ?An offer is a definite promise from one of the parties to the agreement made. They make this promise with the intention that it shall become binding or legally enforceable as soon as it is accepted by the person receiving the offer.? (Dooley, 2010) Contract-offers: One of the main rules of acceptance is that the offer has to be accepted on the same terms of which it was made. One of the factors that indicate an offer hasn?t been accepted is when a counter-offer is made. The main effect of a counter-offer is to terminate and end the original offer and create a new one. Communication of Offers: Offers must be communicated with to the other party. This usually happens in many means, either verbal or written, both of which are valid. If the offer isn?t certain, and is too vague, then it comes invalid. When a person enters contract negotiations with another, they must be aware of the terms to which they are agreeing to. There is an exception to this rule however, when a person makes an offer to a contract with many people, or theoretically speaking, to the entire world. This is known as reward cases. Acceptance: ?The formal agreement to accept an offer.? (Dooley, 2010) There are several factors that must be considered when looking at acceptance, these factors are; 1. Under normal circumstances, the acceptance of the offer has to be communicated with the person who made the offer, who is also known as the offeror. 2. The acceptance of the offer has to be in the form which is specified in the offer, such as written, verbal or so on. ...read more.

Middle

Daniel subsequently went to another computer shop and bought the same computer but for 800 pounds. In that afternoon, Eva phoned Angus and said that she longer wished to buy the computer anymore. Now I?ll be talking about the types of contracts that Angus actually made with each of his customers and I?ll explain the law related with those situations. Angus and Bobby: Bobby was the first person to get back to Angus on his offer through post. Acceptance by post is considered one of the exceptions to the main rule that acceptance must be communicated with the person making the offer, hence when posted, acceptance is considered to be immediately effective as long as the letter is correctly addressed and the stamped envelope is posted in a letterbox. The postal rule states that when agreed that parties will use the post as a mean of communication, the postal rule will apply. Angus however stated that the computer will go to the first person who accepts it on Saturday, and by person he means the first one who comes to his shop, and meets him in person there. He never just said that the first person who accepts will be the one he sells the Bell Supreme to, so despite Bobby being the first to accept, he wasn?t there in person. Bobby would?ve been be the rightful owner of the new Bell Supreme as he was the first to accept Angus?s offer on Saturday, but since Angus stated that it was to be in person, he wasn?t bound legally to Bobby in any way. Bobby can?t sue Angus for not accepting to work with him as Angus never mentioned the first to accept it by post will get the computer, so Bobby as no right to sue Angus over anything. A contract wasn?t formed to begin with. Angus and Catherine: Catherine was the first person to arrive at Angus?s shop on Saturday morning and she offered Angus a check for 500 pounds for the computer, one that Angus has refused. ...read more.

Conclusion

Dorrianne informed her that this aircraft would enable her to successfully complete her trips without having to stop for refueling, something that was clearly wrong. Dorrianne also sold Shirley the aircraft at 1 million pounds more than what it?s actually worth, something which has unsettled Shirley in her business. The impact that these requirements, if true, for Shirley would?ve allowed her to successfully carry on with her business plans and would?ve kept her from incurring a considerable expense in setting up her business. However, due to the fraudulent misrepresentation by Dorrianne, Shirley was forced to shut down her business as the aircraft was unable to fly between the two cities without the need to refuel. Shirley also incurred a considerable expense by having to spend 1 million pounds extra at 5 million pounds on the aircraft which cost only 4 million pounds. This means that there has been a breach in contract by the offeror, which makes the contract invalid. There has been a breach of conditions made by Dorrianne, as the product clearly didn?t match the requirements promised to Shirley. This can immediately lead to the contract either becoming invalid and to terminate. There are also other remedies for such situations such as damages, mitigation, rescission and so on. It is up to Shirley to which case to pursue Dorrianne at and what to sue her for, but given that there was a huge impact on Shirley and her business due to Dorrianne?s action, it would be highly unlikely that Shirley would just go for rescission. Dorrianne might have to pay many damages that she has caused for Shirley, unless she can prove otherwise that this was an innocent misrepresentation or a negligible one, which is very highly unlikely. Dorrianne?s actions that have impacted the requirements for the valid contract has caused Shirley to shut down her business and lose considerable expenses so there has been multiple breaches in the contract by the offeror which makes it invalid and Shirley would have the option to terminate the contract immediately or sue for other charges. ...read more.

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