Business Law Assignment - Contract Essentials, Rules and Applicability

Business law
Assignment
Running Head: BUSINESS LAW ASSIGNMENT 0
7 / 2 1 / 2 0 1 8
Student’s Name

Business Law Assignment 1
Contents
Question 1........................................................................................................................2
Question 2........................................................................................................................3
Issues 3
Rules 3
Applicability 4
Conclusion 5
References.......................................................................................................................6

Business Law Assignment 2
Question 1
Contract: - A single promise or a set of promises, that is legally enforceable for and in
against of both the parties is/are known as “Contract” (Barnett, 2010).
Meaning of a contract can also be understood as that “An agreement that has all the
components which are necessary for a valid contract, termed as a contract.” By
reviewing the previously mentioned definition and meaning of a contract, this can be
stated that some essentials are mentioned in contract laws, which are necessary to
convert an agreement into a contract. These elements are given hereunder:
1) Offer: - An offer must be there in a contract. This offer can be in writing as well as in
verbal mode. This is necessary to mention that only existence of an offer is not
enough in a contract, but such offer must be informed to the offeree.
2) Acceptance: - As soon as an offeror presents an offer to the offeree, the offeree
requires to accept such an offer. Acceptance must not contain a new condition and
must express the assent without any modification in terms and conditions of the
offer. Similar to offer, communication of acceptance is also essential (Miller and
Cross, 2013).
3) Consideration: - After offer and acceptance, consideration is another important
element of a contract. Without a consideration, an agreement cannot be developed
into a contract. According to the case of Thomas v Thomas (1842) 2 QB 851; 114
ER 330 that consideration needs to be sufficient and the same is not required to be
adequate.
4) Intention to create legal relation: - In a valid contract, the intention of the parties
must be to create legal relation and to bind each other legally. Further as per the
decision of the case of Tweddle v Atkinson [1861] EWHC J57, 1 B&S 393, a
consideration in a contract must move from promisee I.e. offeree.