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Finance & Accounting
Pages 8 (2008 words)
BUSINESS LAW ASSIGNMENT Question 1 To what extent is it true that in the event of a breach of contract, the injured party can recover compensation for all of the consequences, both financial and non-financial that result from the breach. In the analysis of this question, there are four main issues that need to be addressed to identify the solution to this question…
A contract is defined as an agreement made with an intention to create legal relationship between two parties in order to exchange some form of consideration (Uher & Davenport, 2009). Basically, in English Law for a contract to be initiated, there should be an offer and an acceptance. Both the offer and acceptable must give rise to the exchange of consideration under terms that are clearly spelt out in clear terms (Young, 2010). Also, both parties must have the legal capacity to contract (be over 18 years old and be of a sound and uninfluenced mind). And the consideration to be exchanged should be legal in the law. Additionally, there should be an intention to create a legal relationship. In Smith V Hughes  40 LJQB J221 it was seen that the intention to create legal relationship can either be expressed or implied when one partie conducts himself in a way that the other might reasonably imply to mean an intention to create a legal relationship hence a contract. Consideration is an important requirement in English Law. A consideration is at thing of value, that a person exchanges for another thing of value in a contract. Treitel, (1988) bases on this and states that a contract gives rise to rights and responsibilities for each party in a contract. ...
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