BUSINESS LAW

Business Law



Business Law

Essay 1

Introduction

This case deals with the transaction involving four parties who are indulged in buying and selling a Rolls Royce. The case begins with the original owner of the car, Peter, who wants to sell it. After publishing his ad on a local newspaper, the first person to approach him was Laura, However later when Peter demanded for online transaction, Laura asked for the physical acceptance note from Peter as the transaction amount was large. In the meantime, Peter was approached by two other individuals, of out of which he found Jeremy's offer most attractive, but that was after dispatching the acceptance note to Laura. However, Peter Immediately dispatched another note stating the cancellation of deal as he got a better price offer from Jeremy. This case clearly deals with the law of contract. In order to understand the whole scenario in the light of the above mentioned law, we need to understand the basic essence of a contract.

A contract can be defined as an accord which is acceptable and recognized by the Law. A proper contract has a lot of importance in business Law and overall operation and external correspondence of the business. It is not only used for legal and governmental purposes but it also forms the very basis of a lot of transactions such as carriage of goods, employment, insurance, credit etc. A contract which fulfills the entire requirements of the parties involved and as stated in the Law of the country, then it said to be Valid. On the other hand, if the contract does not fulfill the criteria set by the Law of the country regarding the valid contract, then it is stated as a void contract. In order to understand the essence of a contract in a better way, we need to know the basic characteristics of a valid contract, which are as follows

Agreement

This is the first characteristic of a contract according to which all the parties involved in the transaction must be in agreement. Now an agreement takes place when an offer is made by one party and duly accepted by the other party. In the case of Peter, an agreement was there, however it was later changed by Peter but on Laura's end, she got the acceptance first.

Consideration

Consideration basically refers to the gains of each party. According to English Law, every transaction or deal should have a two sided bargain to it; this is where each party is providing something in return of something. However, this should be noted that promises do not have any legal value in the English Law and they cannot be claimed until and unless they are backed by a formal deed. In this case, Laura was getting the car and Peter was getting £20,000 for selling his Rolls Royce. However, another aspect to this point is that Peter got a better bargain from Jeremy who was willing to pay £25,000 for Peter's Rolls Royce.

Legal relations

An agreement or a promise can only be termed ...