Contract Law: Elements, Validity, and Legal Liabilities

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Running Head: BUSINESS AND CORPORATION LAW 0
Contract law
6/26/2018
Student’s Name

Contract Law
1
Question 1
(a) To create a contract between Shona and Raymond, some elements must have been there such
as:-
- There must be an offer whether in writing or in verbal mode (jifkins, 2017).
- Offeree must accept the offer before it is revocation by the offeror (Tepper, 2014).
- Such acceptance need be free from fraud or misrepresentation or any kind of undue
influence of a person who made an offer.
- Consideration is also a requirement to create a contract. Consideration in a contract
must be sufficient and valid (The Lawyers & Jurists, 2018).
- To create a legally binding contract, parties to an agreement must have the intention
to bind each other legally.
In the given case, details written on notice board were an invitation to treat. Shona just showed
her interest but did not make an offer. Further, nothing is mentioned about acceptance,
consideration, and intention of the parties. So in this scenario, it may state that there was no
contract in between Shona and Raymond.
(b) As mentioned above that there was no contract between Shona and Raymond, so in this way,
they both will not be liable towards each other in terms of Contract Law. Here this is to mention
that Raymond has shown invitation to treat. Shona did not make any offer, instead, she only
called Raymond to meet and discuss the books. No question of acceptance of offer could be
there in the absence of a valid offer. Raymond has stated to Shona that he will take a legal

Contract Law
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action against her as she breached the contract, but he cannot do so as there was no contract
in between both of them.
Further, an invitation to treat is a kind of advertisement and cannot be considered an offer.
Further, an invitation to treat does not bring any legal liabilities to parties, so Shona is not
correct in her assertion and the Raymond was not liable to deliver the books he offered.
Question 2
Here, in the given case, Ads-For-You made an invitation to treat and Shafiq by sending an e-
mail, made an offer. In the said e-mail Shafiq has mentioned his entire requirement. He received
an e-mail from Ads-For-You and he got disappointed by looking at the prices quoted by the
advertising company. Here this is to state that in contract law when offeree does not merely
accept the offer but mentioned something which has an impact on the original offer, such
acceptance termed as “counter offer” (Lexinter, 2018).
In this situation, Ads-for-You made a counter offer which was expected to be accepted by
Shafiq but he did not do the same, so no contract has established in between Shafiq and Ads-
for-You. Further, it was held in the case Felthouse v Bindley (1862) EWHC CP J 35 that silent
cannot be treated as acceptance in a contract, so in the studied case Shafiq is not liable to pay
anything to an advertising agency.

Contract Law
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Question 3
In the studies case, Veronica has completed a document stating that she will pay $8000 as
consideration for the renovation of his house. Veronica has mentioned in the aforesaid
document that she will pay this amount to Johnathon Harke on the event of a sale of her house.
In the contract law, it is stipulated that for a valid contract there must be a valid offer and
acceptance and consideration is also an important element (Findlaw, 2018). It was held in the
case Chappell v Nestle [1960] AC 87 that consideration must be sufficient but need not be
adequate. As in this case all the situations are satisfied for the creation of a legal binding
contract, Veronica must have paid the decided amount $8000 to Johnathon Harke according to
conditions of the contract. As she has failed to do so, Johnathon is entitled to receive this
amount form, Veronica.
Question 4
In the referred case, Chung Lee has made an offer £1.5 million for purchase a land and Katie
who is representative of the developer has agreed upon this. To enter into a contract there must
be acceptance of the offer, and by providing bank account details Katie has provided her
consent. Consideration also has decided between Chung Lee and Katie, so in this manner,
there was a legal contract between both of them.