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 Spike's Case. And also to develop what are required to enter a legal contract and how to avoid mistake.

Case Study

Spike offers Tom his collection of 'Tiger Woods' branded golf clubs for £1000. Two days later Tom sends a letter to Spike asking whether Spike would consider taking £800 for the golf clubs as the brand has lost its value in the light of Tiger Woods' recent divorce. Spike takes the request as an indication that Tom does not want the clubs at the price offered and, as Spike knows that Jerry would be willing to pay £1100 for them, promptly sells the clubs to Jerry. A week later, Tom, having heard nothing from Spike, sends a letter to Spike accepting the offer. The letter crosses in the post with a letter from Spike telling him that the clubs had been sold elsewhere. Tom had agreed to sell the clubs to his brother in law for £1050.

Contract between Spike's and Tom

An agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. The agreement can be prescribed, casual, in writing, oral or just simple understood. Some agreements are needed to be in writing in order to be enforced. An affirmation between two or more parties which creates obligations to do or not do the specific things that are the subject of that agreement. Examples of a contract are a lease, a promissory note, or a rental agreement (Wilkinson H.W. 1985). 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 compelled, do not constitute offers:* attitudes about future results, encompassing ...