LAW - LEGAL ISSUES

Business Law

Business Law

Essay 1

Introduction

The law of contract which we are going to analyze here is actually the enforcement of promises. Every contract is not enforced by court. For the enforcement of promises, or an agreement court observe some elements. After having a check on these elements, court will prove that agreement as a contract. The contract actually involves a process of certain elements. The process starts from an offer. For the formation of the contract the offer must be accepted, unconditionally. There are certain more requirements for the offer and acceptance. After the communication of acceptance, law needs two other elements as well. One is consideration another is terms of the contract (Lewison, 1997, pp. 12).

The report is based on the case study which revolves around the sale of Rolls Royce and the contract made between Peter and Laura. Peter wanted to sell his car and for that, he gave an ad in the newspaper. Laura contacted him and offered him £20,000. Peter accepted her offer and informed his acceptance on the phone but Laura asked for written acceptance letter and he agreed to provide it through an email. In between, David came to know about the ad and he offered £20,000 cheque which was destroyed by Peter since he wanted the payment via online banking. Peter sent the acceptance letter and later, he came to know about Jeremy's offer which was £25,000 and immediately accepted it. On this acceptance, right away, he emailed Laura his withdrawn from acceptance to her offer.

Meaning of Contract

Contract is known as the promise or the set of promises which are enforced by the law. For a valid contract there should be two or more separate parties must be involved. The parties should have to be certain consensus on specific matters. They should be ready to create legal relations for their promises as they are contractual promises in contract. The promises must be supported by consideration. The contract doesn't have promises all the time which are bare but it also have some bargain in it. The companies which have separate legal personalities involved can have contract where they act in as independent legal entities (Lewison, 1997, pp. 12).

In the case of Peter, the contract is being made by him to Laura and sent the acceptance letter also in order to have written evidence of a contract. It was the promise from Peter to sell his Rolls Royce to Laura by accepting her offer i.e. £20,000. Laura is another party involved in a contract of buying Rolls Royce at the agreeable amount.

An Offer

The contract starts with an offer. It is the expression of willingness to have a contract on certain terms and conditions. It enables other part to accept the offer and provides the basis for an agreement. The difference between offer and others is easy to describe in theory but difficult in practice (McKendrick, 2005, pp.2). In this case, the offer has been made by Laura to Peter ...