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Contract and Agency Law Assignment

   

Added on  2020-03-07

6 Pages1449 Words194 Views
Running Head: Contract and Agency LawTitle: Contract and Agency LawName:Institution1

Running head: Contract and Agency Law1. A contract is a valid agreement, which is legally binding between the two parties. Contracts may be verbal or in writing. ("Contracts and the Law - FindLaw", 2017)According to the Law a contract is considered to be valid if it contains the following essentialelements:1.Offer 2.Acceptance3.Intention to create legal relation4.Consideration to be paidAn offer is a proposal to another to enter into a binding contact. An offer is generally made either to an individual or group or the world at large. An offer becomes binding only when it is communicated and accepted by the offeree. The power of acceptance has to be given to the offeree. ("Essential Elements of Contract", 2017). After a certain time lapse an offer cannot be considered valid. Like in the case of Ramsgate Victoria Hotel vs. Montefoire, there was an offer from the defendant side to purchase the shares of the claimant company. After six months when the price had duly fallen the claimant said he wants to go ahead with the offer to which the defendant wasn’t ready. It was held that due to the nature of the contract it was considered as lapsed after a period of time.In our case, the offer from Ah Choon, he also refused to do in the same price and if werelate to this case the offer could be lapsed after a time period. ("Ramsgate Victoria Hotel v Montefoire", 2017)Acceptance occurs when the party agrees to accept the conditions of the offer in full by way of an act or statement. Acceptance must be unequivocal and communicated to the offeror. Exactly what has been offered needs to be accepted; partial acceptance is not considered as a contract. When there is a counter offer or additional conditions are added to the same offer 2

Running Head: Contract and Agency Lawthen it is no longer acceptance of the original contract. It is not necessary to accept the offer only by way of words. At times the offer is also accepted by way of action. (Stim, 2017). In the case of Felthouse vs. Bindley, there was a deal between nephew and uncle that the nephew was buying a horse from his uncle and if nothing is heard from the latter side then he would consider the horse to be his. By mistake the horse was sold at the auction. The uncle wanted to proceed and he could, as there was no contract, because of silence of the uncle, which can’t be treated as acceptance. Similarly, in our case when Ah Choon and Dazzle Paintquoted the price there was no response of accepting the contract from Benji’s side. So it is treated as void agreement. ("Felthouse v Bindley", 2017)In our case the offer was made by Ah Choon specifying that “Call now for lowest price. No time limit, no pressure, take your time to consider our offer!” But Benji didn’t accept this offer as his words were just that “will think about it”, which cannot be termed as an acceptance of the offer. However, when he called Dazzle Paint they told that the price would be $3000, and then Benji responded saying, “Ok, that sounds ok, I am not in a rush”. And he provided his contact number and address. This is a case where there is preliminary negotiation and not an agreement. There were no words from Benji regarding the contract being given to them. It can just be termed as knowing the terms and conditions of Dazzle paint. Hence, no legal contract exists with Dazzle Paint also. Consideration is the price paid by the promisee in exchange for their promise. Consideration may be some right, detriment, loss or responsibility given, interest or benefit going to one party or forbearance suffered or undertaken by the other party. ("Contracts and the Law - FindLaw", 2017). In our case thought there is consideration in both the case of Ah Choon and dazzle Paint but the discussion with Ah Choon and Dazzle Paint cannot be considered as a legal contract as there was no acceptance of the offer. Mere talking about the policies cannot be termed as a contract. 3

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