LAST SHOT RULE

Acceptance in business contracts (The Last Shot Rule)

Acceptance in business contracts (The Last Shot Rule)

Introduction

Long before currency was introduced in the business world people used to trade or conduct business with each other by trading materials on the basis of the value of products. However, soon currency was introduced and as the world progressed every country posses a certain currency with its value to buy or sell products, but business practice is not so clean as theoretically described, therefore need for robust and effective law is required to ensure that no party foul plays in business. Business contracts are meant to preserve the rights of justice for individuals and parties to conduct business.

When two parties or more agree upon certain conditions to refrain from some acts or to conduct some actions for the purpose of business, this lawful commitment from both parties mostly in written but in some case verbally as well is known as business contract. Business contracts can be of varying types which include contracts for the purpose of selling goods or offering service at a certain value of the services or goods offered.

Business contracts are of varying types which include the following;

Business agreement for purchase and sale of products and goods

Agreements of partnership for business ventures

When a business unit or premises is leased

Lease of business plants and other equipment.

The major types of contracts are mentioned above but the contract includes various factors i.e. exchange of information, discussion between parties, negotiation on price and value and agreements of employment.

The business contract comprises of four essential elements; offer from one of the parties, acceptance from the second party, both parties realization of legal consequences if not obliged to the contract and the consideration for the business contracts. As we explain the composition of these four elements, as one of the parties makes the offer the other one accepts it for a benefit or value, this element is considered the consideration clause. However, the contract can be invalid in some special scenarios; the scenarios are explained as follows. When a party makes an offer of conducting an act of service or providing a good which is illegal the contract becomes invalid, illegal acts can be kidnapping a person or killing someone and illegal good can be supplying drugs and other illegal products. Another scenario is when the contract forces a person to perform mistakes or bring him in undue stress in these scenarios also the contract become invalid (Coppola, 1964).

Business contracts can be of both types written and verbal, but the verbal contracts are difficult to prove in the court of law and need vital evidence or multiple witnesses to prove the contract true in the eye of law. A contract may it be verbal or written is only valid as a contract only if it is considering the four elements. Written contracts are easy to prove as they clearly state what is written in the contract and on what terms both parties have agreed ...