Corporation and Business Law

Running head: CORPORATION AND BUSINESS LAW
Corporation and Business Law
Name of the Student
Name of the University
Author Note

1CORPORATION AND BUSINESS LAW
Issue 1
Whether there is a valid contract between Charlie Martin and his younger sibling.
Rule
A contract to be valid must be accompanied by an offer and an acceptance forming an
agreement. The contract must be arrived at by the free consent of both the parties to the
contract. The contract bring some consideration to both the parties. The terms of the contract
must be legal and fair. The contract must create a legal relationship between the parties
(McKendrick & Liu, 2015).
A valid contract once entered into cannot be repudiated by either of the party involved
in the contract. A contract, which is not valid, the agreement collateral to it is also not valid.
Application
In this case, Charlie offered to enter into an agreement with his younger sibling to
contribute $50,000 and in return he promised to give his sibling a 10% ownership in his
business. His sibling accepted the contract. The contract contains a proper offer with an
acceptance of the same forming an agreement. A free consent of both the parties has been
obtained in this situation. There is a consideration for both the parties accrued by way of this
contract. In this case, $50,000 is the consideration towards ten percent ownership. The
contract was entered into to create legal relations. The contract has all the essential elements
of a valid contract. Hence, this is a valid contract.
Conclusion
There is a valid contract between Charlie Martin and his younger sibling.