Business Law: Validity of Contract and Liability for Breach
Added on 2023-01-23
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Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note
Business Law
Name of the Student
Name of the University
Author Note
1BUSINESS LAW
Issue
Whether any contract has been created between Robert and Cameron. Whether Cameron is
liable to pay accept the wheat and pay for the same.
Rule
An agreement, which has been validly created by an offer accompanying an acceptance
between two parties with the motive of developing legal relations is to be construed to be a
contract. A contract validly created confers legal enforceability to the same. An agreement to
attain the status of a contract needs to be initiated with an offer, which has been accepted
(Fitzpatrick et al. 2017).
The term offer depicts the disclosure of the willingness of a person towards another with
respect to indulge into a legally enforceable relationship with respect to certain terms and
conditions. The offer must contain the declaration of the terms to which the person making
the offer is willing to bind the person to whom the offer has been made. An offer needs to be
communicated to the person to whom it has been made. The mode of communication
includes verbal offers, fax, emails, letter, advertisement and implied conduct of the offeror. It
has been contended by the courts in the case of Smith v. Hughes (1871) LR 6 QB 597, that
the application of the objective test would be more applicable assessing the validity of a offer.
The courts will look into the matter with a perspective of a reasonable man and not from the
viewpoint of the parties to the contract. The terms of the contract needs to be clear and
certain. Ambiguous and uncertain terms cannot form a valid offer (Fitzpatrick et al. 2017).
For the purpose of creating a valid contract, the person to whom the offer has been made is
required to display his assent to the offer. This assent to the terms of the offer is to construed
to be an acceptance. The acceptance needs to be communicated to the person making the
offer and the person accepting the offer needs to have the same perspective and
Issue
Whether any contract has been created between Robert and Cameron. Whether Cameron is
liable to pay accept the wheat and pay for the same.
Rule
An agreement, which has been validly created by an offer accompanying an acceptance
between two parties with the motive of developing legal relations is to be construed to be a
contract. A contract validly created confers legal enforceability to the same. An agreement to
attain the status of a contract needs to be initiated with an offer, which has been accepted
(Fitzpatrick et al. 2017).
The term offer depicts the disclosure of the willingness of a person towards another with
respect to indulge into a legally enforceable relationship with respect to certain terms and
conditions. The offer must contain the declaration of the terms to which the person making
the offer is willing to bind the person to whom the offer has been made. An offer needs to be
communicated to the person to whom it has been made. The mode of communication
includes verbal offers, fax, emails, letter, advertisement and implied conduct of the offeror. It
has been contended by the courts in the case of Smith v. Hughes (1871) LR 6 QB 597, that
the application of the objective test would be more applicable assessing the validity of a offer.
The courts will look into the matter with a perspective of a reasonable man and not from the
viewpoint of the parties to the contract. The terms of the contract needs to be clear and
certain. Ambiguous and uncertain terms cannot form a valid offer (Fitzpatrick et al. 2017).
For the purpose of creating a valid contract, the person to whom the offer has been made is
required to display his assent to the offer. This assent to the terms of the offer is to construed
to be an acceptance. The acceptance needs to be communicated to the person making the
offer and the person accepting the offer needs to have the same perspective and
2BUSINESS LAW
understanding towards the offer as that of the person making the offer. The same can be
illustrated with the case of Robophone Facilities Ltd v. Blank [1966] 3 All E.R. 128. A valid
contract is said to be created when the acceptance has been communicated validly. An
acceptance is required to be unqualified and absolute. Any acceptance that has been effected
by making an alteration in any of the terms of the offer is to be treated as a counter offer and
the previous offer is rendered rejected by the same. However, on acceptance of the counter
offer, the contract will be created. This can be illustrated with the case of Hyde v. Wrench
(1840) 3 Beav 334. It has been held in the case of Felthouse v Bindley [1862] EWHC J35,
[1862] 142 ER 1037 a silence of the offeree cannot be treated to an acceptance. However, a
conduct of a person can be treated to be a valid acceptance. The same can be illustrated with
the case of Brogden v. Metropolitan Railway Company (1877) 2 App. Cas. 666. An offer is
required to be accepted through the mode that has been specified in the offer and in the
absence of any such specification, an offer can be accepted by any of the justified method.
The same can be illustrated with the case of Yates Building Co. Ltd v. R.J. Pulleyn & Sons
(York) Ltd (1975) 119 Sol. Jo. 370.
Under the posting rule, an offer is said to be valid when a letter of acceptance has been
received by the offeree. However, in case of acceptance, the acceptance can be construed to
be valid when the same has been posted by the offeree. In case of acceptance, the receipt of
the acceptance is not relevant for the purpose of forming a contract. The posting rule has
evolved in the case of Adams v Lindsell (1818) 1 B & Ald 68 and has later been extended in
the case of Dunlop v Higgins (1848) 1 H.L.C. 381.
An offer, which has been accepted by the persons having intentions to create legal
relations and for a valid and not adequate consideration is required to be construed as a
contract and the same will bind the parties to the contract towards the terms of the same. The
parties to a contract will be obligated to perform the contract and any breach in the
understanding towards the offer as that of the person making the offer. The same can be
illustrated with the case of Robophone Facilities Ltd v. Blank [1966] 3 All E.R. 128. A valid
contract is said to be created when the acceptance has been communicated validly. An
acceptance is required to be unqualified and absolute. Any acceptance that has been effected
by making an alteration in any of the terms of the offer is to be treated as a counter offer and
the previous offer is rendered rejected by the same. However, on acceptance of the counter
offer, the contract will be created. This can be illustrated with the case of Hyde v. Wrench
(1840) 3 Beav 334. It has been held in the case of Felthouse v Bindley [1862] EWHC J35,
[1862] 142 ER 1037 a silence of the offeree cannot be treated to an acceptance. However, a
conduct of a person can be treated to be a valid acceptance. The same can be illustrated with
the case of Brogden v. Metropolitan Railway Company (1877) 2 App. Cas. 666. An offer is
required to be accepted through the mode that has been specified in the offer and in the
absence of any such specification, an offer can be accepted by any of the justified method.
The same can be illustrated with the case of Yates Building Co. Ltd v. R.J. Pulleyn & Sons
(York) Ltd (1975) 119 Sol. Jo. 370.
Under the posting rule, an offer is said to be valid when a letter of acceptance has been
received by the offeree. However, in case of acceptance, the acceptance can be construed to
be valid when the same has been posted by the offeree. In case of acceptance, the receipt of
the acceptance is not relevant for the purpose of forming a contract. The posting rule has
evolved in the case of Adams v Lindsell (1818) 1 B & Ald 68 and has later been extended in
the case of Dunlop v Higgins (1848) 1 H.L.C. 381.
An offer, which has been accepted by the persons having intentions to create legal
relations and for a valid and not adequate consideration is required to be construed as a
contract and the same will bind the parties to the contract towards the terms of the same. The
parties to a contract will be obligated to perform the contract and any breach in the
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