LEGAL ISSUES

Contract Law

Contract Law

The contract law can be defined as agreement between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration with specific terms and conditions. It is a fact that the law of contracts is at the heart of most business dealings, it is one of the three or four most significant areas of legal concern and can involve variations on circumstances and complexities (Moore, 2009, pp. 69). The elements which are involved in contract law are offer, acceptance, promise to perform, consideration like payment or goods or services, terms and conditions. If there are two persons involve in the contract law then one person is making an offer and the other person is accepting that offer. The purpose of contract law is to secure both the parties which enter into the contract from fraud or non performance of the promise. Under the contract law, the offer must be made without any coercion and the acceptance must be made in good faith. The contract law can be written or an oral agreement. However, generally written agreements are preferred over oral agreement because written agreement provides enough evidence to both parties. This report will focus on the contract law in the context of different situations (Schulte, 2007, pp. 335).

Question no # 1

Analysis of Situation

Marcus has entered into the contract with Keith in which the Marcus made an offer to Keith to provide birthday catering. The Keith accepted the offer in return of £ 1000. Therefore, on one hand the consideration for Marcus is the birthday catering against £ 1000 whereas on other hand the consideration for Keith is £ 1000 against birthday catering. This agreement is free of ambiguities and implied acceptance. However, later the Marcus gets to know that the cost of birth consideration has increased by £ 200 to which the Marcus was very much concerned (Hagedoorn et.al, 2007, pp. 355).

There was an option to Marcus that if he was not willing to pay extra £ 200, he may cancel the contract. Marcus did not cancel the contract and agrees to pay extra £ 200. This was the primary reason that Keith performed promised made by him. The Marcus was also approached by other company but the offer was more costly which led Marcus to not to enter into the contract with the company (Moore, 2009, pp. 69).



Advice to Marcus

As Marcus is hesitating to pay the full amount of £ 1,200, there is a need to advise the Marcus that he must pay the full amount. According to the analysis of the situation explored above, the Marcus was ready to pay the increase price so now he must perform his promise in good faith. There is also a case of implied acceptance as the Marcus was known to the fact that the consideration which was standing at £ 1000 has been increased by £ 200 to £ 1,200 for the birthday ...