LAW

LAW

Question 1

Advice

Eddie must consider following aspect of contract law before any claims. Eddie must be aware of adequate legal controls. There is a risk that the terms of contracts will be unfair to one of the parties. This applies to both contracts between a business and a consumer “consumer contracts” and business-to-business contracts, and is particularly the case where the terms of the contract have been drawn up by one party in advance. Although the other party may “agree” to the contract, he may not be aware of the term in question, or may not understand its implications. Even if he does realize what the term means, he may find that the other party is unwilling to change its “standard terms” just for him. (Glenn, 2007, pp. 89-93)

Both Parliament and the courts have been concerned about unfair contract terms for many years. These are guideline for legally binding the two parties for contract formation:

Legally Binding Contracts

Although it is usually the wisest option, legally binding contracts do not just apply to contracts set out in writing. Under the eyes of the law verbal contracts are just as legally binding as written contracts. A contract is basically an agreement between two parties, for example, one party supplies a service and the other pays for it. Regardless of whether this contract is set down in writing or verbally it is still a binding contract under law.

Formation of a Contract

There are two basic rules to the formation of a legal contract; offer and acceptance. One party makes an offer or agreement to provide a service and the other party accepts the offer. By setting out the terms and conditions of offer and acceptance a legally binding contract has been made. If the contract is broken, or breached, then the law can used to enforce the contract.

Consideration and Intention

Consideration and intention are two other factors that make up a legally binding contract. Consideration is usually the exchange of something, such as wages for work with an employment contract. Intention is where both parties make a contract with the intention of that contract to be legally binding. These terms are used more in common law and may not hold any weight if a dispute reaches the law courts. If a dispute does reach the law courts then a judge will be looking closely at the terms and conditions of the contract in practice.

Legally Binding Contracts

Many people are unaware of the various ways that legally binding contracts can be set down. By far the best way of making a contract is for both parties to sit down and draft up a contract in writing with all the terms and conditions laid out. In today's world there are many different forms of communication options, and emails, faxes, and telephone call agreements for exchange of services are all considered legally binding contracts. As long as an offer and acceptance is made or implied then any breach of contract can be legally ...