TREAT IN BUSINESS LAW

Invitation to treat in business law



INVITATION TO TREAT IN BUSINESS LAW

Introduction

According to Sir Frederick Pallock (1783), a contract is "a promise or set of promises the law will enforce." Business does all the time the contracts with suppliers, customers, employees, etc. (Bouckaert, 2000) the essential part of any contract is that there are two parties involved and there is always an offer and acceptance. The contracts are usually written and signed on paper, but need not necessarily be the case, this is what might be called verbal contracts.

Discussion and Analysis

Acceptance is an expression of unconditional willingness to be legally bound by all terms of an offer, which has been duly communicated to the offeror (and leads to a legally binding agreement.) (Rush Jon and Otley 2006). Acceptance is the most important part of a bid. Acceptance means that the affected offeror and unconditionally agree to all states involved in the offer. Acceptance may be communicated orally or in writing and creating a legal contract, but the most important part is that it shows the agreement and the satisfaction of both parties during a transaction. (Freeman, 2006)

A bid is a proposal with a promise by the offeror (person making the proposal) is going to be bound by the promise of the addressee (person to whom the proposal is made) is accepted. There, "An offer is a promise to do or not do something that is capable of acceptance by another person" (Anon 2007).

The offer must be complete, clear and specific in order to be accepted. This means that all terms must be clearly explained so that the negotiations have not yet given.

When someone makes an offer, it is a proposal in the terms determined by the offeror, together with the promise to be bound by this proposal if the recipient accepts the terms. The offer may be a bilateral which means it is between two people (face to face), for example when a director of a school of a student Wright offering them a place in your school this offer can only be accepted by that particular student. If an offer is made to a group can be accepted by any member of that group. The offer can also be done unilaterally, which means it is an offer everyone, for example, the U.S. government has offered a reward for the whereabouts of Osama Bin Laden. The offer may be accepted by anyone who knows, and is Bin Laden.

An example of a case involving a real offer is to Carlillos v Carbolic Ball Co (1893). The company was so sure of their smoke balls were placed advertisements in newspapers saying he would pay anyone who caught the flu 100 pounds after using their smoke ball as directed. Ms. Carlillos bought one ball of smoke, which is used as directed, but still caught influenza. Said that the reward £ 100, but was rejected, so it sued the company in the contract. The court held that this type of contract, known ...