Business and Corporate Law: Assignment (Doc)

Business and
Corporate law

Table of Contents
ISSUE...................................................................................................................................................3
LAW.....................................................................................................................................................3
APPLICATION....................................................................................................................................5
CONCLUSION....................................................................................................................................6
REFERENCES.....................................................................................................................................8

ISSUE
 Is there a contract between Nikhil and Vicky.
 Is the contract is valid.
LAW
CONTRACT:
A contract can be defined as a legally enforceable agreement or promises between two
parties. The contracts make the business transaction solid between individual, corporation or sole
traders. The legal contract must be voluntarily made by those having contractual capacity. This
means that the contracting parties must not be minors, intoxicated or mentally incapable.
Elements of valid contracts: To make a valid and legally bound contract for sales the following
conditions and terms must be fulfilled:
Contractual agreement: To form a valid agreement between parties there must be valid
terms of offer and acceptance. One party make offer and the other party accepts the same which
creates a binding contract (Durovic and Janssen, 2018). The offer must be made in such a way that
people can understand it and accept the same.
OFFER:
In case of sales contract the first requirement is that one party must make an offer to sale. An
offer exist when one party, clearly express the willingness to enter into contractual relationship t
that will be bound by the specific set of terms and condition.
Sales proposal through advertisement:
An advertisement is considered to be a valid offer unless it fulfils all following three
elements:
 The terms of same are definite that is clearly express the description, quality, quantity and
prices of the articles offered for sale.
 It is communicated to a specific purpose or a limited group of people.
 The circumstances exist that with publication of the advertisement advertiser have an
intention to enter into a contract.
The main principle governing the regulation of validity of advertisements as offer to sale is
when the parties intent to assign legal responsibility to enter into contract (Contractual agreement -
offer and acceptance , 2018). Generally it is on the discretion of the court to decide the validity of
an advertisement as valid offer.