Business Laws - Solved Assignment PDF
Added on 2021-06-18
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Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
1BUSINESS LAWSTable of ContentsAnswer 1....................................................................................................................................................2Answer 2....................................................................................................................................................6Answer 3..................................................................................................................................................11Bibliography.............................................................................................................................................16
2BUSINESS LAWSAnswer 1First IssueHave the correspondences between Susan and Terry led to the formation of a validcontract?LawA valid contract results out of determination of five primary elements. The elements of alegally binding agreement include offer, acceptance, consideration, intention andcapacity. However for the purpose of this section of the paper the provisions associatedwith the element of offer and acceptance are going to be addressed. Determination ofvalid offer depends upon whether it is an invitation to treat, whether it has been revokedand whether it has been rejected. Determination of valid acceptance depends uponwhether it has been communicated, whether the communication is lawful and whether itis unequivocal and not a counter offer.Communication of an acceptance has to be lawful. The postal rule is one of the rules todetermine whether the communication via the mode of posthas been made legally ornot. The postal rule was an effect of the case of Adams v Lindsell (1818)1. The postalrule signifies that acceptance is made at the time when a party to the contract posts theletter of acceptance. There are limitations to the application of the rule. The rule can berelied upon when the post is addressed correctly. Further the rule can be relied upononly when post is not denied as a mode of acceptance before the contract is made. 1Adams vLindsell (1818) 1 B & Ald 681
3BUSINESS LAWSThe postal rule however is applicable on acceptance only. This means that revocationof offer is not subjected to the postal rule. Revocation of offer is the process throughwhich a contract is withdrawn. In the famous case of Byrne & Co v Leon Van TienHoven & Co2a rule was provided according to which that was made clear that arevocation can only be effective when it has reached the offeree. Therefore if arevocation has been sent by post and it has not been received by the offeree then itwould have no legal effect and the contract would still be available to be accepted.Application of LawAn offer was made by Susan through whom she wanted to sell hundred gold bars forwhich a price of $45,000 has been decided. This offer had been provided to Terry onJanuary 27 through post. Terry received the letter on February 3 and upon suchreceived he had posted is acceptance as well as he was very pleased with the price ofthe gold. On the other hand Suzanne on January 30 had sent a letter to Terry notifyinghim that she has revoked the offer. However in this situation the rules of the case ofByrne if applied would suggest that the revocation which had been made by Susandoes not have any legal effect until and unless it has been received by Terry. He wouldbe entitled to get into the contract until he has received to the letter of revocation. Thecontract between Suzanne and Jerry as for the postal rule was made on 3rd Februaryitself and the revocation which was received on 4th February has no legal effect. Thissignifies the formation of a valid offer and acceptance.2Byrne & Co v Leon Van Tien Hoven & Co [1880] 5 CPD 344
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