Legal Right And Responsibility Commercial Law

Commercial law
Commercial Law 0
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Student Name

Commercial Law
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Introduction
A contract brings legal right and responsibility to parties that may be
used in against of each other. This is the reason that presence or existence
of contract takes matter for the parties of transaction. The report presented
herby contains total 5 questions whereby first four are based on given case
study scenario and the last one is based on the topic of alternative dispute
resolution where pros and cons of different ADRs shall be discussed.

Commercial Law
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Question 1
Issue
Whether in the whole case any contract was made? If yes, then who
were the parties of the contract and in what manner the same was
developed.
Rules
There are some basic factors that every contract has in it. In case of
the absence of any one or more factor, an agreement cannot be turned into
a contract. To check whether a contract exists in a situation or not, these
factors are required to check. The first factor is an offer, which represents a
proposal from one party to another where such a first party makes a promise
to do something in exchange for another thing. Similar to an offer, another
aspect is also there under contract law which is commonly known as an
invitation to treat. This represents invite for offers. It means when a party
makes an invitation to treat, the other parties need to submit their offers in
reply. Such an invitation is addressed to the public in general. An offer may
be accepted unlike an invitation to treat. It means the offer has a binding
nature but not an invitation to treat. However, if the nature of the invitation
is very certain and clear about the performance of a task then a party may
even accept an invitation to treat rather making an offer in reply of the same
as given in the case of
Carlill v Carbolic Smoke Ball co [1893] 1 QB 256. The
second important factor is acceptance. When the person who receives an

Commercial Law
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offer becomes agree with the terms of the offer and to do accordingly then
the same gives his/her consent to the offer that should be absolute. It means
the same should be granted for exact terms of the offer and must be
communicated to the offeree. In addition to this, where offeree accepts the
offer while doing changes in the offer then it is the amount as counter offer
after that every previous offer becomes unavailable to accept. The third
factor is the intention of parties. For each valid contract, it is important that
parties must carry an intention to build formal and legal relationships and to
bind each other legally. It was given in the case of
Jones v Padavatton [1969]
1 WLR 328, that law takes a presumption of absence of such intention where
parties carry social/domestic relationship. The fourth factor is a
consideration, which comes in the form of promises that parties make to
each other. Consideration can be money, or an article or activity or anything
else that has legal values. It must move from offeree to the offeror. The last
factor of a valid contract is the capacity of parties. Under contract law,
minor, insolvent, people with mental disability are treated as incapable to
develop a contract. As soon as all these factors are combined in a
transaction, the same turns out into a contract.
Application
There are many transactions involved in the case. The first transaction
consists of Alan who posted his will to sell handwritten notes and books in
consideration of $200. The terms of this communication were clear and
anyone could accept this by paying $200 hence the transaction was offer