Determining Breach of Contract and Liability in Business Law

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

1BUSINESS LAW
Activity 3
Scenario 1
To determine whether Hi-Tech would be able to sue Flagship Motel for breach of
contract.
An offer and acceptance is one of the most essential elements of a valid contract. An
offer is a sign of willingness that the offeror shows to the offeree for his acceptance for the
offer. However, an offer is different from an invitation to treat which involves an invitation to
many people at once so that they may counter-offer to that particular invitation for further
negotiation. An offer can be rejected by the offeree on the first instance when he receives it,
while the offeror can revoke his own offer too, just before the offeree shows his interest or
acceptance for it. On the other hand, an offeree can revoke his acceptance to an offer only till
the point it is received by the offeror as once it comes to the knowledge of the offeror it
cannot be cancelled, for it is stopped by the principle of Promissory Estoppel (Stone and
Devenney 2017).
In the give scenario, the Flagship Motel accepted the invitation of Hi-Tech for
purchasing 300 toasters at the rate of $57 each over an exchange of Faxes which was receive
and confirmed by Hi-tech. Therefore, after a proper exchange of offer and acceptance,
Flagship Motel would be allowed to revoke their acceptance and shall be liable to pay
damages if they breach.
Therefore, Hi-Tech would be able to sue Flagship Motel for breach of contract.
Scenario 2
To determine whether the hotel can charge the parents or Ben for the costs incurred.
A legally binding contract not only requires a proper exchange of offer and
acceptance along with a consideration, but also requires the parties to be have the capacity to