Business Law Assignment Pdf 2023

Running head: BUSINESS LAW
Business law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
i.
Issue
The issue in this case is to determine that whether a valid contract has been formed between Alan
with Charleen, Bernard and Damien so that the strength of their legal claims can be analyzed.
Rule
a. According to McKendrick (2014) a contract is a agreement which has legal effects on the
parties entering into it and the beach of which can result in compensation to be provided
to the aggrieved party by the wrong doer.
b. There are seven elements which are required to form a legal agreement include an offer,
acceptance, consideration, Intention to create legal relationships, Vitiating Factors,
capacity and illegality.
c. According to prof. Trecitel an offer is an expression which signifies the willingness of a
party to get into a contract based on specific terms, the expression has to have the
intension off being bound by law as soon as it would be accepted by a person or group to
whom it had been made.
An offer is different from an invitation of offer. Invitation of offer are made to invite
another person to make an offer and do not carry any legal obligations. They are an
incomplete version of an offer. A offer for selling goods can be stated as complete if it
consists of terms like price, mode of delivery, date of delivery, mode of payment and
description of goods. A offer is considered to be complete if a reasonable person finds it
complete and gets induced by it into a contract.
d. As stated by Atiyah (2006) an acceptance is the unequivocal and final expression of
providing assent to an offer made by another person in relation to a contract. An

2BUSINESS LAW
acceptance is the process through which the offeree provides his signification with
respect to his will of getting into a contract with the person making the offer on the same
terms which have been offered by the person. A contract cannot come to an existence
without a legal acceptance.
An acceptance cannot contain any term which was not present into the offer. Neither can
the acceptance contain a term which has the effect of omitting any of the terms present in
the offer. The acceptance cannot be completed unless it has been communicated to the
person who has made the offer. It can be communicated in any reasonable form unless a
specific from is specified by the offer.
e. Intention of Creating Legal responsibility- Chen-wishart (2016) defines ICLR as the wish
of the parties to a contract to bind each other to the terms of the contract in a legal
manner. If the parties do not intend to be bound legally a contract does not exists.
f. Capacity – person below 18 years, those having an unsound mind and those who are
forbidden by law cannot enter into a contract.
Application
Only the person who has been provided with the offer can accept the offer. According to the
facts of the case as Damien is not on Alan’s friend list he is not capable of accepting the offer as
it has been made only to Alan’s facebook friends. However, Alan was sent an SMS by Damien
which accounted to an invitation to treat. The invitation had been accepted by Alan who made an
official offer to Damien to sell the book at $200. The offer was accepted by Damien on 4th
November by paying him the money. Thus there is a valid contract between Damien and Alan.