CONTRACT LAW

Contract Law

Contract Law

Introduction

This assignment is focused on the legal issues of agreement only i.e. offer and acceptance. The English law of contract is clear on the fact that any agreement that is enforceable in a court of law is considered a contract. Offer and acceptance are some of the most important features of a contract. In this case, one party makes an offer for a certain arrangement, and the other party accepts the terms of the arrangement. Neither offer nor acceptance has to be made through writing or through making oral statements. This type of contract is referred to as an implied contract in which certain terms are not expressed or explained in words. This seems to be the kind of agreement that Sam had with Vinny. Once he accepted offer for his medals, Vinny expected him to accept and pay for the services rendered.

Agreement

An agreement is made when two people reach an understanding about a particular issue, including their obligations, duties and rights. While agreement is sometimes used to mean contract — a legally binding oral or written agreement — it is actually a broader term, including understandings that might not rise to the level of a legally binding contract.

Offer

An offer must be a clear, unequivocal and direct approach to another party to contract. For this reason, advertisements, catalogues or store flyers are not offers. Nor is a FOR SALE sign on a used car. The law calls these invitations to treat; essentially invitations to the general public to make an offer on a particular item. But, even here, there have been exceptions. For example, in a 1856 case, an advertisement of train rates was held to be a valid offer. Much depends on the wording of the invitation.

Acceptance

The act of accepting; a receiving what is offered, with approbation, satisfaction, or acquiescence; esp., favorable reception; approval; as, the acceptance of a gift, office, doctrine, etc.

Case Analysis

In order to know your rights under sale of goods and/or service agreements, it is important firstly to understand the basic principles of contract law. Contract law is all about enforcing promises and making them legally binding irrespective of whether there is something in writing to this effect. Despite the word 'contract', and contrary to popular belief, a written contract is not required in order for these obligations to exist in law. A contract may also be formed verbally or by implication, simply by one party making an offer and the other party accepting that offer - even purchasing an item in a shop, or getting into a taxi are examples of this. Of course it must be proved that both offer and acceptance were clearly communicated and understood, that both parties were legally capable of making those promises, and there was something being offered in exchange for the promise (usually money). And while 'putting it in writing' is not necessary for a legally binding contract to exist, as the next section will show us, it may be hard to prove what was ...