Business Law: Evaluating Contract Elements in Sanjoy and Lynda Case

This case study examines the principles of contract law, specifically focusing on the elements required for a valid contract, using the scenario of Sanjoy and Lynda. Sanjoy offered to sell his scooter to Lynda for $2,000, giving her a week to decide. However, Sanjoy revoked the offer before Lynda could accept. The analysis delves into the five essential elements of a contract: offer, acceptance, consideration, mutuality of obligation, and competency/capacity. It concludes that a valid contract was not formed because acceptance and mutual obligation were absent, as Lynda did not accept the offer before Sanjoy withdrew it, and there was no mutual agreement at the time of cancellation. The advice provided to Lynda suggests that the agreement was void due to the lack of these critical elements, protecting her from any legal obligation to purchase the scooter. The document references scholarly articles and online resources to support its claims and analysis.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Discussing contacts and its elements...........................................................................................3
Advice regarding the case............................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
Business law can be defined as group of rules and regulation that govern the commerce and
business dealing with the individuals. It is mainly considered as a part of civil law that deals with
problems of both private and public law. The present report is based on the case study of Lynda
and Sanjoy in which a valid contact was not made between them. Further, the report discusses on
business law contact that can be said as a binding agreement between two parties regarding the
selling and buying of business. Moreover, the study also discusses on the five elements that are
necessary for valid contact.
MAIN BODY
Discussing contacts and its elements
A contract requires two or more parties that are legally competent to enter into an agreement.
It can be in different form such as verbal, oral and writing, along with this if the contact is
enforced between parties the court can held them liable for breach of what they agreed into the
settlement. Moreover, the business contract is formal agreement between the purchaser and
seller. There are five elements of the valid contacts (Chalkidis andet.al.,2017) are discussed in
detail as follows:
1. The offer: It is a first element of legal contract. That can be defined as oral and written
proposal made by one party to other party to enter into the legal agreement. In the present
case, the Sanjoy offers to sell his scooter to Lynda for $2000. Thus, they have followed
the first step of the contract.
2. Acceptance: This is the second element of the legal contact in which the offer made by
one individual is being accepted by other one or the action of considering the specific
term of an offer. Likewise, offer it also can be done in verbal form but generally in
business deal they make sure that it is done in written form so to avoid the fraud between
the partner. In the quoted case, there is no acceptance as Sanjoy has given a 7 days’ time
for the decision making to Lynda but it has not being accepted. Thus, this element is not
present in the case (Schmitthoff., 2020).
3. Consideration: The third stage of contact is consideration that can be stated as the value
brought by the one party in exchange of purchase specific products and services as per
agreement. It can be in terms of bond or monetary. Therefore, it is a particular law that

expect a party to do specific act or refrain them to do so. As in the case of Sanjoy and
Lynda, they decide for the monetary amount of $2000 and they mentioned it in the verbal
form also (Zaytseva, 2021) but actually there has been no exchange of money or
consideration for scooter among them.
4. Mutuality of Obligation: This is the fourth element required in agreement that basically
a binding settlement between the two parties on terms they have mentioned in the
consideration. For instance, if one party has more advantages, such as they can cancel the
agreement then court can check whether the parties have mutually agreed on it or not.
And if they have not agreed on one decision equally the court will invalidate the
agreement. In the mentioned case, Sanjoy cancel the contact hence, it was not mutually
decided by both of them hence, it is not a valid contact.
5. Competency and Capacity: In the fifth element it is mentioned that majors and sound
mind people are legally competent to enter into legal agreement. Moreover, the
agreement between minor and lunatic person are consider as void. In the current case
they both are major and are capable to enter into contract (5 Elements of Contact., 2021).
Advice regarding the case
From the above report, it is to be suggested to Lynda that the contract was not legally
appropriate as two elements of business agreement is not present such as acceptance and mutual
obligation. As they are crucial for the commerce because acceptance is the action to adapt the
proposal and mutual obligation means both parties are equally agreeing on the decision regarding
settlement. Therefore, it is not a valid contact as Lynda didn’t accepted the offer and she didn’t
even reject the bond. Hence, the contract between Lynda and Sanjoy was void.
CONCLUSION
From the above report it can be concluded that for commercial contact is very essential for
the business deals as it protect the purchaser and buyer from threat such as fraud and
misappropriation. Further, the study also summarized about the legal contract that can be define
as a legal agreement between two individual to achieve the common goals. Moreover, the report
also throw light on the elements of contract likewise offer, acceptance and mutual consideration
and their relation in the Sanjoy and Lynda case. Lastly, it advice the Lynda regarding the valid
contract.

REFERENCES
Books and journals
Chalkidis and et.al.,2017, June. Extracting contract elements. In Proceedings of the 16th edition
of the International Conference on Articial Intelligence and Law (pp. 19-28).
Savelyev, A., 2017. Contract law 2.0:‘Smart’contracts as the beginning of the end of classic
contract law. Information & communications technology law. 26(2). pp.116-134.
Schmitthoff, C. M., 2020. International business law: a new law merchant. In Current Law and
Social Problems, II (pp. 129-153). University of Toronto Press.
Zaytseva, N. V., 2021. LEGAL COMMUNICATION OF THE PARTIES AND A
PROLONGED CONTRACT: AN ANALYSIS ON THE QUALIFICATION
PROBLEMS OF SUBJECTIVE TRANSACTION ELEMENTS. Journal of Legal,
Ethical and Regulatory Issues. (24). pp.1-6.
Online references
5 Elements of Contact., 2021. [Online]. Available through <https://www.upcounsel.com/5-
elements-of-a-legally-binding-contract>.