Business and Corporation Law - Issues and Rules

Running Head: BUSINESS AND CORPORATION LAW
0
Business and Corporate Law
2/29/2020
LSBM105
Student’s Name

LSBM105
1
Contents
Issue.................................................................................................................................................2
Rules................................................................................................................................................2
Revocation of offer and postal rules- 4
Counter offer and postal rules- 5
Application......................................................................................................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

LSBM105
2
Issue
The issue is to determine whether a valid contract exists between James and Elizabeth or not.
Rules
Contract law prescribes some elements that are essential for each contact. These elements need
to exist in each valid contact according to the rules of contract law. The first element is an offer
that one party known as the offeror makes to another party, which is known, as the offeree. The
offer represents a proposal where the offeror promises to do something or not doing the same in
exchange for another promise. For the validity of an offer, some point needs to be kept in mind.
The very rule states that each offer must show an intention to bind the offeror. Similar to offer,
contract law also has another term that is known as an invitation to treat that must not be
confused with an offer. An invitation to treat is different from an offer in a way, as it cannot be
accepted. Another rule related to offer states that the same need to be communicated to the
offeree. There is the reasoning behind this rule, as offeree cannot accept the offer unless the same
is not aware of what does offer says and what condition the same contains. Therefore,
communication is important.
Another element of a valid contract is consent. Under contract law, consent refers to the
acceptance of the offer presented by the offeror. Once a valid consent is granted, a binding
contract comes into existence all the essential elements of a contract are present. Here it is clear
that consent plays a crucial role in the development of the contract. In respect to the validity of
consent, contract law provides three main rules. The first rule has been confirmed in the case of
Entorres v Miles Far East [1955] 2 QB 327 according to which offeror need to receive the