CONTRACT LAW

Contract Law

Contract Law

Introduction

In order to answer the question, it is essential to give an overview of the cases and discuss what a contract is along with subject to contract. This will help in identifying the factors, which bind parties to a contract according to law.

Overview of the Case

The first case was between 80 year old women named Betty and her niece Olivia. Betty lives in a large but dilapidated house. Betty contracted with her niece and asks her to stay with her and help her in redecorating her house. The time period for which Betty asked Olivia to stay was two years, for which Betty promised to grant her £2,000. On the completion of her time period, Betty refused to give her the money.

On the other hand, the second case is between Paul and Easybuild builders. Paul bought a guest house which needs renovation. Paul agreement with Easybuild to renovate his guest house with in six month time span for which he offered to give £4,000. Easybuilod agreed and stated to work on it. Soon, Easybuild realize that there is a lot of work to do in that guest house and it will not be possible for Easybuild labour to get it done within the agreed time span. Easybuild discussed his concern with Paul, for which Paul offered additional £2,000 for completion of work with the agreed time span. Easybuild agreed again and completed the guest house on time. At the time of the payment Mr. Paul paid only £4,000 which resulted in the breach of agreement.

Contract

The analysis of a contractual law mostly takes place with respect to offer and acceptance. When it comes to an offer, one of the parties, which is the offeror, offer to the other party, which has the liberty to accept the offer or not. If the other part, which is the offeree, accepts the offer, then it creates a binging contract between the two parties (Young 2010, pp. 117-145). However, there are a number of considerations when analyzing the concept of a contract law. The primary or the significant concepts of the contract law are an invitation to treat, and invitation to offer. It is essential to determine the differences and distinctions between the two concepts before analyzing contract laws. The two concepts of contract law depend on offer and acceptance. Therefore, one needs to have adequate facts and examples to identify if a situation deals with an invitation to offer or an invitation to treat.

Elements of Contract

There are a number of elements of a contract. At first, it is essential to identify if there is a contract or not. This is a significant step, which takes into consideration the following elements (Chen-Wishart 2007, pp. 478-700).

The initial two are extremely obvious and play a significant role in binding the contract legally:

An offer: an offer is an intention or willingness to express a contract, which consists of the establishment of terms and conditions. It is the offeror who makes the ...