Legally Binding Contract and Breach of Contract

Running Head: BUSINESS LAW ASSIGNMENT
0
Business Law
MLC707
4/28/2019
Student’s Name

MLC707 1
Contents
Question 1........................................................................................................................................2
Issue 2
Rules 2
Application 4
Conclusion 5
Question 2........................................................................................................................................6
Issue 6
Rules 6
Application 8
Conclusion 9
Question 3........................................................................................................................................9
Issue (a) 9
Rules (a) 9
Application (a) 10
Conclusion (a) 11
Issue (b) 11
Rules (b) 11
Application (b) 12
Conclusion (b) 12
Issue (c) 12
Rules (c) 13
Application (c) 13
Conclusion (c) 14
References......................................................................................................................................15

MLC707 2

MLC707 3
Question 1
Issue
The issue of the case is to check whether there was a legally binding contract between Robert
and Cameron. Can Robert sue Cameron for breach of contract?
Rules
Parties under a contract get right and obligation for each other if they have entered into a legally
binding contract. Now the issue is to check that what a legally binding contract is. In order to
answer this issue, this is to state that a valid contract is the one, which has all the essential
elements, namely offer, acceptance, the obligation of the parties to enter into a contract and
consideration (Lawbuddy.com.au 2019, para 4.). Starting from the very first essential i.e. offer
this is to say that an offer can be in written as well as in oral mode. An offer must show that the
offeror has the intention to bind to another party as decided in the case of Harvey v Facey [1893]
UKPC 1 (Liuk.co.uk, 2017 para 6.). An offer seems to be complete when it comes under the
notice of offeree. On the different side acceptance is also an important element of the contract. If
all other elements such as consideration and intention of the parties are there in the offer made by
offeror then as soon as offeree gives his/her consent, a valid contract is formed (Latimer, 2012).
For a valid acceptance, it is required that the same must be communicated to the offeror. It
means only becoming agree to the terms mentioned under an offer is not enough and the offeree
must let the offeror know about his/her consent. Further, it was given in the case of Felthouse v
Bindley [1862] EWHC CP J35 that silence cannot be understood as consent and express consent
is required to form a contract. Similar to an offer, an acceptance also be considered complete
when it comes into the knowledge of offeror.