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Assignment on Busienss Law (pdf)

   

Added on  2021-06-16

10 Pages2463 Words60 Views
Running Head: BUSINESS LAWBusiness LawName of the Student:Name of the University:Author Note

1BUSINESS LAWAnswer 1 Part AIntroduction The law of contract is based on five fundamental elements. These elements are as followsOffer Acceptance Consideration Intention of getting into legal relationship Capacity of contract These elements have to be identified between the correspondences taking place between theparties in order to establish a valid contract before law. If any of the five elements are not presentthan there is no contract formed between the parties. The element of offer and acceptance rerelated to the meeting of minds of the parties. Till there is an absolute agreement between theparties a contract is not formed. Thus the principles of agreement are based on this rule(McKendrick 2014). Analysis The process of creating a contract starts when a party makes a valid offer rather than aninvitation to offer. A valid offer is an offer which a person with reasonable knowledge will comeacross and think that the person making such statement or expression wants to create a legalrelationship. These principles had been discussed by the court in the case of Smith v Hughes(1871) LR 6 QB 597. Further when a party makes a statement in form of an advertisement it is

2BUSINESS LAWgenerally not regarded as an offer unless it is a unilateral offer as held in the case of Carlill vCarbolic Smoke Ball Company [1892] EWCA Civ 1. Further it has been found by the court inthe landmark case Partridge v Crittenden [1968] 1 WLR 1204 that there is no legal sense indeclaring that an advertisement is an invitation to an offer. This is because a person will not beable to meet the demands of the whole group to which the advertisement has been made. It hasbeen provided through the scenario that an advertisement had been made by the website ownedby Magda for the sale of the panting in context. Thus as per the principles of Partridge vCrittenden the painting advertisement will be an invitation to treat. Sunday 19 FebruaryAn offer had been made by Avinash for the purpose of purchasing the painting at a price of$1600. The offer had been made by him via an email. On the case of Smith v Hughes it had beenruled by the court that when a statement is made having the intention to bind the other partyreasonably to its terms and is of a complete nature it is held as a valid offer. Thus in this caseAvinash has made a valid offer. An offer comes to an end when it has been rejected via a counter offer as stated in the case ofHyde v Wrench [1840] EWHC Ch J90. A counter offer is a statement which is made against anoffer and is not unequivocal. Thus when Magda quoted a higher price for the painting the offermade by Avinash had been countered. \In addition via the same principles an additional condition had been asked for by Avinash andthus there was no valid acceptance. Avinash had been made a valid offer as per which the portrait was to be provided to him at aprice of $1800 and the offer was valid till February 21.

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