Anson's Law of Contract | Business

Running head: BUSINESS
Business
Name of the Student
Name of the University
Authors Note

BUSINESS1
Scenario- 1
Issue
In this paper, the issue to be discussed is whether the couple can take any action against
Louise for violating the contract or not.
Rule
Contract is considered to be an agreement, which is formed between two or more
individuals or organizations with an intention to create common responsibility which is
enforceable by law (Anson et al., 2010). Many authors defined contract as a voluntary exchange
of promises which create several responsibilities. In order to be legitimate, a contract must
contain two key elements, such as:
 Every parties need to have the ability to come into an agreement; and
 Something needs to be exchanged for something, such as services or goods replaced for
cash.
In addition, there are four essential elements which need to be present in a legitimate agreement,
such as:
1. Offer;
2. Acceptance;
3. Meeting of minds; and
4. Consideration,
Many authors are of the view that without any of these of four elements a contract becomes
voidable or void contract. Contract law helps to preserve the rights and interests of the

BUSINESS2
contractual parties. The common and statutory laws are considered to be the key sources of
contract law. The decisions of several cases are considered to be the common law or judge made
laws and the statutes of both state and federal are considered to be the statutory law. Many
authors considered contract law as the product of common law. However, the principles of
common law are modified, restricted or replaced by the legislation of a specific area (O'Sullivan,
2018). The basic features of a contract are:
 There must exists a common intention between the parties. It includes a negotiation;
 The contractual agreement must be read and understand by the parties;
 Vital terms of the agreement needs to be perfect, explicit and agreed upon.
 The process of negotiation occurs when one party offers something and other party
accepts it.
Therefore, in order to become lawfully binding, a contract needs to include offer and acceptance.
The party who makes a clear and precise offer inclusive of all terms is called the offeror and the
other party to whom the offer is made is called the offeree. Apart from offer and acceptance, it is
also vital to communicate the offer (McIver vs. Richardson [1813] 1 M. & S. 557). In Holwell
Securities Ltd v Hughes [1974] 1 W.L.R. 155, 157 case the court held that it is the
responsibility of the offeror to communicate the offer to the offeree before accepting the offer.
The communication can be made through email, fax, post, internet, and courier or in person
either to a particular individual or to the people at large (Collins, 003). However, in David
Baxter Edward Thomas and Peter Sandford Gander vs. BPE Solicitors [2010] EWHC 306
(Ch) case the court held that the postal rule is not applicable to the communication through email
as such communication is immediate. In Chwee Kin Keong vs. Digilandmall.com Pte Ltd
[2004] 2 SLR 594 case the court held that as emails are processed through servers therefore it is