• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...


´╗┐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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marked by a teacher

    Wace Burgess Case Study

    4 star(s)

    if Wace Burgess did have many mistakes this may require M&S to use valuable time to get a new supplier in order to meet the demands of there customer's. if Wace burgess did send products of low quality to M&S this may prevent M&S supplying these to their customer's therefore will have empty shelve, therefore quality increases dependability.

  2. Microsoft Case Study. Objectives, structure and marketing.

    Normally products in a product life cycle which have reached the decline stage could be put under this heading. Products under this heading will normally absorb cash which is generated from other products. These products could be said as the break-even units as they make barely enough cash to keep small amount of market share.

  1. Proctor & Gamble, Inc. (Scope Case)

    (Appendix A) This data shows that the entire market is maturing, but also that Scope is losing the most out of the emerging competition. Identify best alternative The best alternative would be a combination of 2 of the alternatives. One being to add another claim that Scope reduces plaque and/or fights germs to compete with the new competition.

  2. Small Business Strategies - identifying the target market, necessary skills, plans for development and ...

    This can be through numerous forms, including questionnaires and telephone interviews amongst others. This information may be used in such things as questionnaires, magazines, and Interviews By carrying out their own primary research, the business will be able to cover specific issues that apply to their situation.

  1. The Impact of Migration on the Reduction of Poverty

    For instance, the international one dollar a day income defines the line to measure poverty across nations. Apart from the varying dimensions mentioned above, it is also important to note that there are number of other factors as demographic setting, socio-cultural conditions prevalent etc, besides the economic setting, which influence migration.


    evaluate the business and find what is needed to create a stronger work force. Mentoring is done with an individual for example, an experienced employee at a bank may mentor a new employee however coaching is done with several people at a time e.g.

  1. PEST is a planning tool which is used by a business to evaluate and ...

    Ginsters could diversify their product range and provide healthier options; this would means that people would be more inclined to buy Ginsters produce. However this could cost a lot of money in the short term for Ginsters as they will have to advertise and promote the new products.

  2. In this assignment I'll be explaining the competitive pressures on two businesses to develop ...

    Actions taken by the business to respond to these competitive pressures Product New look is a fashion/ clothing based organization. They face the pressure of having more fashionable and appealing clothes than stores like Primark and forever 21. New look will have to try and provide better quality clothes that are in style.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work