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

In this Assignment I am going to describe the requirements of a valid contract and also describe how statutes affect contractual terms.

Extracts from this document...


BTEC National Diploma in Business Aspect of Contract and Business Law Introduction: In this Assignment I am going to describe the requirements of a valid contract and also describe how statutes affect contractual terms. Task 1.1 (p1) In this first task I will be explaining the requirements to create a valid contract and I will also point out the differences between an offer and an invitation to treat. A contract is an oral or written agreement between people. A contract is made in order to know your rights so that you cannot breach it, which means a contract binds the parties together so that no one can breach the agreement in future. A contract is an agreement between two or more parties who intend to be bounded by law. A valid contract has to consist the following: * A valid offer * A valid Acceptance * A valid Consideration * Intention * Capacity * Legality Offer This is the first stage of a contract, this is when the offeror the person who makes the offer, states an interest to enter an agreement, if the offer that the offeror sets is accepted by the other party (the offeree). An offer is a proposal, promise or other manifestation of willingness to make and fulfil a contract. However and offer from the offeror could also be terminated if the offeree does not accept the terms of the agreement. There are certain rules relating to what a valid offer is one of those is that the offer must contain all of the terms of the proposal contract so that the offeree (the person to whom an offer is made) ...read more.


an offer is a contract is formed when an invitation to treat is "accepted" no contract has yet been formed. There must still be an offer made usually by the person who has accepted the contract to treat for example gone into a shop and ask about a product. Task 1.2 (p2) Statute law is law that has been created by the Parliament in the form of legislations, which means when a consumer buys a product from a company they enter into a contract and the contract has different type of terms attached to it e.g. express terms and implied terms. The most useful terms are implied terms. Created by some of this legislation because it gives extra coverage to customers when they buy products from someone selling in the course of a business. * Express term: This is when the two parties agreeing to a contract set the rules or terms of the contract by themselves, it could be in a form of negotiation but the terms are often set there by the people who create the contract. Express term are those promises and statements which have been made either orally or in writing and which are included in the contract. The parties themselves will have agreed these terms. * Implied terms: A term may either be express or implied. An express term is stated by the parties during negotiation or written in a contractual document. Implied terms are not stated but nevertheless form a provision of the contract. ...read more.


If a customer goes into an organisation to purchase a product, the correct price of the product will appear when it's scanned. Failure in this will lead to the sales person asking another colleague for the price of the product and apologising to the customer. This could lead to predicting wrong prices to the customer. * Lie to consumers' regarding sales prices and making up price reduction. Organisation's sales personnel (if qualified) are aware they are not allowed to do this. * Supply faulty goods to consumers. Organisations providing goods for consumption have to en sure expiry dates are displayed on food items and gives advice on how faulty goods can be returned between certain periods. In 1994, this aspect of the Act was strengthened by the General Products Safety regulations. Conclusion All of these, means that organisations are not allowed to charge customers unreasonably for goods and services provided (this includes giving wrong prices on goods). If customers felt they have been charged unreasonably they can always contact the office of Trading Standard just like in the Sales of Goods Act. This act basically relates to both Sales of Goods Acts and Trade Description Act as we can see it talks about the prices and condition of goods and services provided. Organisations have to make sure all repairs and installations are done properly by using the best tools and also carrying out all their services within a reasonable period of time. They have to give guarantee on the services they provide (like fixing an electrical item). If the services don't meet the guaranteed period, organisations are obliged to provide the services again without charging the customer. ...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 Law of Contract section.

Found what you're looking for?

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

Here's what a teacher thought of this essay

3 star(s)

3 stars,

A good essay for the law and business module. More detail on key principles, and case law, would improve the grade.

Marked by teacher Edward Smith 09/07/2013

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 Law of Contract essays

  1. Marked by a teacher

    "The requirement of consideration is an unnecessary complication in the formation of contracts."

    4 star(s)

    Sir Frederick Pollock defines it in a similar way as well, in the case of Dunlop v Selfridge[1915] as being an act or forbearance of one part, or the promise thereof, is the price for which the price of the other is bought and the promise thus given is for value is enforceable.

  2. Postal Acceptance Rule

    19 December 1972, which the defendant received on 21 December 1972 (1 day after the prescribed time period). The plantiff sued the defendant claiming that he had validly exercised the option to purchase the defendants property. The issue before the court was whether the notice had been validly given within

  1. Entores ltd V. Miles Far East Corperation [1955] 2 QB 327(CA)

    not hear B's reply because of any reason then at that stage there is no contract. But if B wishes to make a contract he must shout back his acceptance so that A can hear what he says not until A has B's answer that A is bound.

  2. Law of Contract - Question and answer.

    Michelle's second letter of acceptance is therefore useless in this case, as there is no offer present to merge her acceptance into an agreement. Were an offer to have existed, Michelle could employ the terms of the postal rule in a claim that David breached the agreement which on the posting of her acceptance would exist between them.

  1. Contract Law - offer and acceptance.

    be accepted by one the local companies through the highest tender submitted. This in turn would be followed by a bilateral contract to sell the widget machine to that particular company. In order to establish with which of the companies Astonia PLC may have a binding agreement with it is important to examine each of the tenders submitted.

  2. Critically evaluate what in law will amount to an offer

    The order was accepted and sent to the new owner, (the foreman). The offeror refused to pay as he made an agreement with the previous owner to receive the piping for free.

  1. Generally, silence of the offeree does not constitute an acceptance of the offer. ...

    There are a number of later cases which creates exceptions to the rule that silence cannot amount to an acceptance. One of these cases is Taylor v Allon where an uncommunicated acceptance might be sufficient to exist providing the defendant's intention to accept.4 In this case, Lord Parker implied that

  2. Evaluate the law of formation of contract in the context of modern methods of ...

    clarified elements regarding communication of acceptance. It established that; the postal rule does not apply to faxes and it should be noted that where items to which the postal rule do not apply arrive outside office hours, communication will not take place until office hours.

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