Law

Business Law

Business Law

Introduction

Contracts can be made in both written and verbal forms. However there are few cases in which contracts needs written agreements of acceptance and it needs to be signed. Verbal contracts are valid and legal just as written contracts but it is far better to have written proof so that both the parties in contract can have the written proof of their contracts. However in making verbal contracts it is often difficult to have the proof of decided agreements in case there is disagreement from the contract between the parties later on. If the contract s is made in verbal form without signing the offer and acceptance letter, the contract will not be enforceable by law.

There is always the threat of breach of contract. After the agreements and the contracts are signed, when one party commits a breach of contract by not delivering what was promised to deliver in the contract. It is also considered as the breach of the contract if the offering party does something that defines clearly that the party has no intention to carry out its promise that is mentioned in the contract. In order for the contract to be valid there must be a valid consideration where valid consideration means there must be an offer and acceptance and there is some monetary value to the consideration. For example promising rent her the accommodation for 1 Ponds constitutes a consideration as there is some monetary value to the agreement. However father's promise to a son to take him to a European tour does not constitute a consideration as there is no monetary value to the agreement.

Answers to the questions

Question: 1

Following are the explanations of the terms related to this case.

Acceptance is an act that manifests assent to the terms of an offer in a manner invited by the offerer so that a contract is formed.

Rules to Acceptance

Offer is accepted as soon as it is communicated to the offerer.

There are general rules to the acceptance of offer:

If fax, telex or message is received during the normal business hours, acceptance is communicated to as soon as it is received even though it is not communicated until later.

If fax, telex or message is received outside business hours, it is said to be communicated when the business next starts.

Postal Rule

Postal rule says that acceptance must be communicated to the offerer. The postal rule says that approval is complete as the letter is delivered.

Adams v. Lindsell 1818

an offer was made from Lundsell to Adams for the sell of wool

if this offer was to be adequately guided, the response could have been reached D by the 5thbut it was misaddressed and could not arrived P until 7th

they arrived at the same day by post which was arrived the 9th

at the 8 day the D got the wool

P attempted to sued for the act of breach of contract

However postal rule only applies if:

The letter is properly stamped, addressed and posted and post is reasonable method of ...