CONTRACT LAW

Contract Law

Contract Law

Introduction

Contract can be defined as a legally bidding or a promise or set promises which is enforceable by law. And the contract usually made between two parties or more. To enter the contract there must be an offer an acceptance that made by two parties or more, both parties to a contract must first reach an agreement. Inside an agreement which create rights and obligation that may enforced in the court. Agreement can be formal, informal, oral, written, but some contract must be in writing in order to be enforced. In contract there are express and implied. Express is the one that happened where the term of agreement are directly uttered and avowed at the time of making, and during that time occur pay a stated price for something (Barron, ML 2005). In implied contract is more formal rather than express, it happen such as man employ another to do job to perform any work, the law implies that the former contracted has to pay the value as much as labour work. This essay made to develop understanding of contract as it applies to the practice of Atkinson's Case. And also to develop what are required to enter a legal contract and how to avoid mistake.

Atkinson's contractually bound suggestion

In the case of Atkinson's and Spongey negotiations were held internationally, using a variety of communication devices. A contract is formed when acceptance is communicated by the offeree to the offeror. If it is necessary to determine where a contract is formed, this should be at the place where acceptance is communicated to the offeror." It then decided that in cases "of instantaneous communication the contract (if any) was made when and where the acceptance was received." This is an exception to the "postal rule." So the "postal rule" does not apply to fax transmissions (Frey, M.A., et al, 2002)

Where the offeror prescribes a specific method of acceptance, the general rule is that the offeror is not bound unless the terms of his offer are complied with. However the offeror who wishes to state that he will be bound only if the offer is accepted in a particular way must use clear words to achieve this purpose. Where the offeror has not used sufficiently clear words a court will hold the offeror bound by an acceptance which is made in a form which is no less advantageous to him than the form which he prescribed. The following types of communications, which do not manifest intent to be contractually bound, do not constitute offers:* Opinions about future results, including professional opinions* Statements of intention (including letters of intent which merely memorialize negotiations)* Invitations to submit a bid* Price estimates* Advertisements, catalogs and mass mailings* An auction is "with reserve" unless announced to the contrary (Beale H.G. and Bishop W.D. and Furnston M.P. 2001).

An agreement between two or more competent parties in which an offer is made and accepted, and each party ...