Business Law
Added on 2023-01-18
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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
Question 2
Issue
Whether any contract has been formed between PCUK and Speedo.
Rule
A contract needs to have all the essential elements to be treated as binding upon the
parties. These includes offer and acceptance, consideration, intention of the parties to create
and competence. Offer implies a display of willingness of a party to bind the other to certain
terms in return for a consideration. To form a valid contract the offer is required to be
accepted. Acceptance, on the other hand, is an assent of the other party to whom the offer has
been made towards the offer. An acceptance to be valid needs to be communicated to the
person making the offer. The same can be illustrated with the case of Powell v Lee (1908) 99
L.T. 284. The acceptance of an offer needs to be carried out within the time, which has been
stipulated in the contract. If the contract does not contain any time stipulation, it can be
accepted at any time, which seems to be reasonable under circumstances. An acceptance to be
valid is required to be unqualified and absolute. It needs to be accepted with respect to all the
terms of the contract in the same sense as has been made in the offer. This can be illustrated
with the case of Hyde v Wrench (1840) 49 ER 132.
A contract cannot be construed to be valid if it has not been instituted by way of a valid
offer and acceptance. If the offer and acceptance are not valid the contract will also not be
treated to be valid. The same can be illustrated with the case of Smith v. Hughes (1871) LR 6
QB 597.
Question 2
Issue
Whether any contract has been formed between PCUK and Speedo.
Rule
A contract needs to have all the essential elements to be treated as binding upon the
parties. These includes offer and acceptance, consideration, intention of the parties to create
and competence. Offer implies a display of willingness of a party to bind the other to certain
terms in return for a consideration. To form a valid contract the offer is required to be
accepted. Acceptance, on the other hand, is an assent of the other party to whom the offer has
been made towards the offer. An acceptance to be valid needs to be communicated to the
person making the offer. The same can be illustrated with the case of Powell v Lee (1908) 99
L.T. 284. The acceptance of an offer needs to be carried out within the time, which has been
stipulated in the contract. If the contract does not contain any time stipulation, it can be
accepted at any time, which seems to be reasonable under circumstances. An acceptance to be
valid is required to be unqualified and absolute. It needs to be accepted with respect to all the
terms of the contract in the same sense as has been made in the offer. This can be illustrated
with the case of Hyde v Wrench (1840) 49 ER 132.
A contract cannot be construed to be valid if it has not been instituted by way of a valid
offer and acceptance. If the offer and acceptance are not valid the contract will also not be
treated to be valid. The same can be illustrated with the case of Smith v. Hughes (1871) LR 6
QB 597.
2BUSINESS LAW
Application
In the present situation, PCUK urgently needed to obtain some tenders for the ground
clearance work. For the purpose of the same the Project Manager of PCUK named Michael
called “Speedo Contractors” amongst others, to enquire if they were willing to tender.
‘Speedo’ promptly sent a surveyor over to take measurements and then telephoned Michael
citing a price of £1 million to undertake the work. This can be treated as an offer to PCUK for
accepting their tender.
In response to the same, Michael thanked them for the call and said he would consider
their price along with others he obtained and then get back to them. This cannot be treated to
be an acceptance as it has not been expressly communicated to PCUK. Moreover, due to a
last minute issue with a planning condition, it was several months before Michael wrote to
‘Speedo’ accepting their price. This cannot be construed to be a valid acceptance as the same
has not been made within reasonable time. ‘Speedo’ stated that their price had now gone up
to £1.3 million. Michael called them and said that he thought there was a contract in the sum
of £1 million and that ‘Speedo’ were bound to carry out the works for that price. This cannot
be treated to be a contract as the acceptance was not unqualified and absolute.
Conclusion
It can be concluded that, no contract has been formed between PCUK and Speedo.
Question 3
Issue 1
The issue in this present situation is whether there are any implications if Michael has
ignored the warning signs. The issue is whether there are any implications if Michael has
promptly alerted ‘Global Electrical’.
Application
In the present situation, PCUK urgently needed to obtain some tenders for the ground
clearance work. For the purpose of the same the Project Manager of PCUK named Michael
called “Speedo Contractors” amongst others, to enquire if they were willing to tender.
‘Speedo’ promptly sent a surveyor over to take measurements and then telephoned Michael
citing a price of £1 million to undertake the work. This can be treated as an offer to PCUK for
accepting their tender.
In response to the same, Michael thanked them for the call and said he would consider
their price along with others he obtained and then get back to them. This cannot be treated to
be an acceptance as it has not been expressly communicated to PCUK. Moreover, due to a
last minute issue with a planning condition, it was several months before Michael wrote to
‘Speedo’ accepting their price. This cannot be construed to be a valid acceptance as the same
has not been made within reasonable time. ‘Speedo’ stated that their price had now gone up
to £1.3 million. Michael called them and said that he thought there was a contract in the sum
of £1 million and that ‘Speedo’ were bound to carry out the works for that price. This cannot
be treated to be a contract as the acceptance was not unqualified and absolute.
Conclusion
It can be concluded that, no contract has been formed between PCUK and Speedo.
Question 3
Issue 1
The issue in this present situation is whether there are any implications if Michael has
ignored the warning signs. The issue is whether there are any implications if Michael has
promptly alerted ‘Global Electrical’.
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