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

What is a contract and the legal criteria for offer and acceptance in a valid contract

Extracts from this document...

Introduction

Laura O’Connell Business Contract Law Task 1 What is a contract? People each day enter contracts constantly. A contract a legally binding agreement between two or more parties through a verbal or written agreement. There is certain elements that have to be presents to make a contract such as: An offer An acceptance Consideration Capacity Types of contracts There are a few different types of contracts. However each contract is either Unilateral or Bilateral. And each contract is a verbal or written contract. Unilateral Contract A unilateral contract is where a person says to a group of people that they will give something exchange for something else and wait for people to accept the offer. One example is on Gumtree where people place an add saying that they want a certain item would pay £x for it and wait for people to accept the offer. Bilateral Contract A bilateral contract is where two parties agree on the conditions. Usually there is a standard form contract used. This contract is made between two parties using their standard form contract which they would have had drawn up previously and is made for each customer that comes in so they just have to print it off. ...read more.

Middle

When a company or individual advertise goods or land or services for sale and are not treated by the courts as indicating the intention make an offer. These advertisements invite possible customers to make an offer which then can be accepted or not. If there?s no acceptance there?s no contract as acceptance is one the key features of a contract. Offer and Counter Offer After a person sees a product and gives in to invitation to treat they make an offer to the person or business selling the product. This is them showing willingness to make a contract with that person once accepted. They can offer the amount that was displayed or try a different deal. The person selling the product can decline the offer so it is then as if the offer never existed however they can make an offer back if they really want to sell the item. This is then called a counter offer. For an offer to be valid three essential things have to be present. These are: Clearly stated terms intention to do business Communication of that intention Offeror and Offeree An offeror makes the offer to the individual advertising a good or service. ...read more.

Conclusion

Third is that an offer is made and the offeree rejects, the offer is gone and there is no contract. Scenario Shop has a sale sign up for 50% off I take a nosey and see a piece of clothing I like in the sale I go to the cash register to pay The cashier scans the product and tells me how much it is I then hand over the correct amount and the cashier gives me a receipt In the scenario the shops sign for 50% off items of clothing is an invitation to treat. When I go in and see an item of clothing marked at a certain price this still invitation to treat. When I go to the cash register to pay I am then making an offer and I am then the offeror. When the cashier scans the product and tells me how much it is and I hand over the money that person then is offeree and can reject my offer or accept. Once the cashier accepts my money and gives me back the receipt that is them accepting and a contract is made and done. ...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. NETFLIX CUSTOMERS SATISFACTION

    Commitment could be ?lso reflected in ?ttitude. Committed customers could believe th?t their chosen supplier or goods ?re the best in its field. Rel?tionship between Service Qu?lity ?nd Customer Satisfaction Bither ?nd Hubbert (1994) expl?in th?t Service qu?lity is the customer's over?ll impression of the rel?tive superiority of ?n org?niz?tion's services, where?s satisfaction derives from individu?l service encounter.

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

    leader as may not be selling a large quantity of their products. Also because there has been an increase in the trend of becoming a vegetarian in the UK this will decreases Ginsters chances of meeting their aim to become the savour products market leader as vegetarians along with elderly

  1. Business plan. The business that I am going to produce is a personalised logo ...

    I think that I will go to a bank as a source of advice for PDW, as I think that out of everywhere this resource is best applicable to my businesses needs of information. Other businesses are assessable if in need of any source of advice as well.

  2. Disneyland and M&S. I am going to investigate customer service in two separate ...

    Canteen and staff rooms o Good promotion prospects o A sympathetic and understanding ear o Fair and on time payments o A desirable benefits package such as high discounts and reasonable holidays A business needs to take into consideration the internal customers needs, wants and expectations and the dire impact on the business if these are not met.

  1. starbucks customer service

    A'amal has a Nescafe coffee machine which helps make the coffee boys job easier and the rest of the staffs' life easier when they desire a tea or coffee. This is because it is quick and efficient. External customers are stakeholders of the business who use the business for its products and services.

  2. Business Studies Company Recruiting

    With pressure on land supply, and government focus on sustainable development and meeting the UK's housing needs, mixed use is increasingly prevalent. * Building new homes. Cluttons' dedicated new homes team offer a comprehensive service to house builders and developers, advising on the potential of the development land for residential use, as well as the marketing of new homes.

  1. I will be identifying the legal criteria for offer and acceptance in a valid ...

    Acceptance through post is an exception to the rule which states that acceptance has to be communicated with the person making the offer. When the acceptance is posted, it?s considered to be immediately effective only if it is correctly addressed, stamped, and posted in the letterbox.

  2. Assignment 1 - Understand the legal requirements for a valid contract

    The Postal rule is a rule of contract law that makes an exception to the general rule that an acceptance is only created when communicated directly to the offeror. An acceptance is binding and the contract is said to be perfected when the acceptor places this acceptance in the mail

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