Agreement and Consideration in Business Law

1
Contents
Solution............................................................................................................................................2
Answer (a).......................................................................................................................................2
Issue.............................................................................................................................................2
Relevant Law...............................................................................................................................2
Application of Law......................................................................................................................2
Conclusion...................................................................................................................................3
Answer (b).......................................................................................................................................3
Issue.............................................................................................................................................3
Relevant law.................................................................................................................................3
Application of Law......................................................................................................................4
Conclusion...................................................................................................................................4
Bibliography....................................................................................................................................5

2
Solution
Answer (a)
Issue
Whether there is an agreement between Harry and Connor?
Relevant Law
An agreement is said to be in existence between two parties when there is an offer made by one
party to another and the other party accepts the offer made to it. An agreement is meeting of
minds whereby one party shows its intention to be in agreement with the other by giving an offer
and the other party accepts the offer by showing its intention to be in agreement with the person
making an offer. (Latimer 2016)
The two ingredients which make up an agreement are explained in detail below:
Offer - An offer is a proposal which is given by one party (offeror) to the other party (offeree) in
order to formulate an agreement. An offer must be specific and not an ambiguous and it is then
only the same is considered to be a valid offer. An offer may be in oral or written form. An
offeror by his proposal gives his set of terms upon which he wants an offeree to accept his offer
(Harvey v Facey 1893). An offer can be made to world at large or to a specific person but the
offer is said to be concluded when it comes within the knowledge of an offeree (Carlill v
Carbolic Smoke Ball Co [1893 1893). When an offer is made for specific period of time then it is
said to lapse after the expiry of such period (Dickinson v Dodds 1876). (Gibson and Fraser 2013)

3
Acceptance – An acceptance is said to occur when an offer made by an offeror is assented too or
confirmed by an offeree as per the terms of an offer. An acceptance must be clear and specific. It
must be made before the lapse or expiry of an offer. Acceptance is complete when it is
communicated to an offeror (Entores Ltd v Miles Far Eastern Corp 1955). An acceptance must
be same and equal to an offer. In case the acceptance is there but with a variation in offer, then,
the said acceptance is not an acceptance and gives rise to a counter offer, which becomes a new
offer (Hyde v Wrench 1840). When the offeror states that the acceptance must be in proper
manner or mode then in such case the acceptance is said to be complete when the acceptance is
made in that particular manner only. But if there is slight variation in the manner of acceptance
then such acceptance is valid acceptance (Tinn v Hoffman 1873). An agreemnst is said to be
concluded when the accepatnec comes within the knowledge of an offeror. In case of acceptanec
by pos,t the acceptance is concluded when the letter with regard to acceptance is posted (Adams
v Lindsell 1818). It does not matter when it reaches but when it is put in transit then acceptance
is said to be complete. (Gibson and Fraser 2013)
Application of Law
Connor at his brother engagement met Harry. At the function negotiations took place between
them. Harry told Connor that he is willing to revamp his employee procedures. Harry on this told
Connor that on Monday he will send a proposal with regard to same to Connor.
Harry sends an email on Monday to Connor and states that he is willing to appoint Connor on his
board as a Human Resource consultant. Harry stated that Connor will provide him with exclusive
services for 2 weeks from 1st August 2018. Connor will have to work onsite with his assistant
manager and him. The fee of $28,000 was also stated by him for the said services which included