Business Law

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

1BUSINESS LAW
Issue 1
Whether any claim has been accrued to the buyer against the seller. Whether the seller can
seek resort under any defences. Whether the buyer has a possibility of succeeding.
Rule
There are certain elements that are required to be established while claiming a contract to
be valid. A valid contract that has been constructed consisting of all the elements necessary
essentials will bind the parties to the contract towards the terms of the contract and will
mandate them to perform the contract. This can be illustrated with the case of Amev-Udc
Finance Ltd v Austin [1986] HCA 63, (1986) 162 CLR 170. In this furtherance, it can be
stated that the contract is required to be constructed with the help of an agreement that has
been created with an offer moving from one party to the contract towards the another, which
has been duly accepted by the other party. This requires a genuine offer that has been
communicated to the offeree in certain and undisputed language. This comes in line with the
case of Australian Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20. Any
invitation to treat is to be considered as the request to negotiate an agreement or a contract
and the same cannot be treated as an valid offer. This can be made evident with the case of
Gibson v Manchester City Council [1979] UKHL 6. Again, the making of an offer is not
adequate for the formation of a valid contract, the acceptance of the same is also mandatory
for a valid contract. The same can be illustrated with the case of Robophone Facilities Ltd v.
Blank [1966] 3 All E.R. 128. The acceptance needs a communication to the party making the
offer. The acceptance is also needed to be absolute and precisely directed towards the terms
of the offer. The same can be illustrated with the case of Lucy v Zehmer, 196 Va 493 84 S.E.
2d 516.