enforceable contract; namely offer, acceptance and consideration as highlighted by Lord Wilberforce in New Zealand Shipping Co Limited v A M Satterthwaite, The Eurymedon1 (it is important to note that contracting parties must have legal capacity to enter into a contract and it…
s to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the “offeree.3”
The “expression4” may take different forms. The intention element is an objective consideration and the case of Smith v Hughes 5emphasised the relevant consideration as being a focus on how a reasonable person would view the situation.
Seddon et al further assert that the “test for existence and the scope for an agreement is that of an objective manner. When a test is objective, it takes account of what the parties actually did say in order to make an offer and agreement6”. Moreover, in the case of Storer v Manchester City Council7 it was asserted by Lord Denning that “a man cannot get out of a contract by saying: I did not intend to contract” if by his words he has done so”8.
Furthermore, in the case of Acme Grain Co. v Wenaus 9it was asserted: “to constitute a contract, there must be an offer by one person to another and an acceptance of that offer by the person to whom it is made. A mere statement of a person’s intention or a declaration of his willingness to enter into negotiations is not an offer and cannot be accepted so as to form a valid contract10”.
Additionally, the law distinguishes between an offer and an invitation to treat, which is not an offer but an indication of willingness to negotiate a contract11. For example, in the case of Gibson v Manchester City Council12, the words “may be prepared to sell” constituted an invitation to treat and not a distinct offer. Indeed, the Gibson decision challenged the traditional view for formation of contractual agreement. In this case, Lord Denning asserted that when considering whether there is a binding contractual agreement, it could be argued that: “there is no need to look for strict offer and acceptance. You should look at the correspondence as a whole and at the conduct of the parties and see therefore ...
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(Contract Law (Introduction to Business Law) Essay)
“Contract Law (Introduction to Business Law) Essay”, n.d. https://studentshare.net/miscellaneous/396045-contract-law-introduction-to-business-law.
Usually such contracts may be vital for the formation of the company may have to be eventually accepted as they form a responsibility of the company. An example is for building a minimal set of infrastructure and other resources for the company including offices, contracts need to be organised with the third parties by the promoters.
Which must be applied first and why? (15 marks) Golden Rule Golden Rule or British Rule of statutory interpretation gives authority to the judge to dismiss the literal meaning of a word in order to prevent passing an illogical ruling. Golden rule is a compromise between the literal and the mischief rule (Zander, 2004).
The author states that Patrick Atiyah’s book, Introduction to the Law of Contract, has been imperative in the spread of Contract law and thus enabling people understand the various concepts in the law and the rubrics for its effective running. Britain is one country that has embraced contract law with a lot of passion.
Generally, a contract is binding and enforceable if it meets the following essential requisites: 1) consent; 2) lawful object; and 3) lawful cause. Consent is presumed to have been validly given if the offer of the other party was accepted by the other contracting party without any condition attached.
Second, there is the consideration that both parties need to contribute (Miller & Jentz, 2004). The lessor would let me rent his apartment, the rental fee of which I had to pay on a monthly basis. Third, all the formal requisites were stipulated in the written lease contract.
In many states, if both parties enter into an agreement that is fully discernible by the laws of that state then they are both expected to uphold their end of the agreement. If one does not do so then a contingency can occur which can make the sales contract fall into a null and void contract (Reality Times, 2004).
“A contract may be defined as a legally binding agreement… The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the
In the last two centuries there has been a rapid rise in human population combined with advancement in technology. As a result businesses have expanded and many new professions have evolved. This scenario has changed the dynamics of legal systems as well. More
As the author of the essay puts it, Golden Rule or British Rule of statutory interpretation gives authority to the judge to dismiss the literal meaning of a word in order to prevent passing an illogical ruling. It is emphasized that Golden rule will qualify a literal rule in a case where the literal rule is not applied where doing so will lead o injustice.