Contract Law: Essential Elements, Counter Offer, Remedies and Rights

This report discusses essential elements of contract law, counter offer, remedies available in contract law and rights in contract law. It also includes two case scenarios to explain the concepts in detail. The report is a great resource for students studying business law or contract law.

Individual Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Case Scenario 1...........................................................................................................................3
Contract law................................................................................................................................3
Essential Elements of Contract...................................................................................................3
Counter Offer..............................................................................................................................4
Case Scenario 2...........................................................................................................................5
Remedies available in contract law.............................................................................................5
Rights in contract law..................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is legal regulations and the laws which use to provide major areas as in
relation to the legislation, as in all the organisation there is been seen that for efficient and
smooth working it is important to maintain all the laws to be applied and followed. There are so
many laws which are being made by them they are like companies act, IPR, employment act,
contract law etc. in order to enter in an agreement individuals can frame a contract as it is
generally being enforceable with law and helps to provide all the laws. Contract law also have so
many remedies that are available(Pathak, 2019). In this report there will be general discussion
about the two case scenarios and essential elements and rights and the remedies of the contract
will be explained.
TASK
Case Scenario 1
Contract law
It is the binding of two or more person in some mutual agreement as in order to maintain
the business or to perform any task between them, and this binding will there by be enforceable
by law. Contract law is generally used to help all the individuals in their mutual transaction and
in providing them a proper help regarding the working and avoiding all kind of breach in their
agreement. This s enforced with all and all the individuals are provided with rights and the
obligations as according to law in it(Cook, 2021).
Essential Elements of Contract
Their cannot be any kind of contract is being framed without the elements that are being
given in it. As it is important in all the agreements to fulfil the elements which are provided in
contract. They are mentioned there under: Offer- This is the first and important element which is generally the initiative taken by
one party for entering in the contract or to make any task to be done. This is generally an
invitation to treat which is provided by the parties for completing all the obligation which
are required. The person or one party use to invite another person for competing a work
or to entering the agreement being made in them.

 Acceptance- It is second step or element as when the offer is being made by one party for
the performance of act and the other party has their by accepted that offer or invitation. It
is mainly the consent given by another party for the invitation treat. This can be
expressed or implied and as the party can either orally or in writing can give their consent
to the other party for completing the work (Downe, 2020). Consideration- No contract can be made if the consideration is not being fixed between
them. This is generally the monetary value or the set of amount which is being decided
between the parties in order to complete the contract. As this is generally the money or
some important value which is being fixed between them.
 Legal intention- This is the intention which are being made between the parties and all
the obligations with which the person will have to perform an act. It means that all the
person in order to bind themselves in the contract will enter with the legal intention as
there should not be any kind of fear or ill motive behind coming in the contract.
Counter Offer
When the parties decides to enter in the contract they use to decide all the essential
requirements and the facts with it and along with that there is the discussion about the
consideration that is to be fixed between them. As when the parties at the time of implement all
the terms and the agreement of the contract use to negotiate for the consideration it use to
generate the new offer or contract (Mallet, Abdijabar, and Flayyih, 2021).
In other words, counter offer is the revocation of all prior dealings or the agreement made
between the parties and it is the negotiation which is being made at the time of contract. This
usually use to be seen in business transaction, as parties use to negotiate for the particular
amount or sum. Once counter offer is initiated by any of the party then all the prior agreement
will be revoked and they will have to uplift the contract with new agreement which is being
made.
As in the case of Hyde v. Wrench (1840), court held that once the counter offer is made
between the parties it will supersedes all the initial offers that are made between them earlier.
Defendant will not be held liable as the time period given and the consideration which was
decided earlier was changed at the time of negotiation with which all the old contract will not be
countable and no contract is being made between them.

Thus, in this case scenario where while entering in the contract he made an offer of
£750 for which he had also given the time period of 7 consecutive days in order to decide about
the contract but, neither Belinda agreed nor she replied on that period of time. And after the
completion of the quotation period she agreed for which Avril replied that now new amount
being fixed is £900. there is the counter offer served by him and in this case all the terms or the
contractual agreement will be revoked with the counter offer and if Belinda want to make that
work completed she either have to agree with the new consideration or can negotiate and make
new counter offer with him(Langille, and Eisen, 2021).
Case Scenario 2
As in this case scenario Charlie has made an eventual contract with Darwash it is
generally a contract which is being made for the temporary time period between the person and
which can be performed by themself or by their help with any other person. It generally creates
agent and principle liability too, as it provides that Charlie and Eddie are involved in the work
and they were in obligation to make that work completed for Darwash.
Remedies available in contract law
There are generally different types of remedies that are provided by court for the parties
who had suffered breach of contract. They are like as follows: Specific performance of contract- It is an equitable remedy which is being awarded by
court as in this court use to order the party to do the work which is discussed in the
contract. Which means to fulfil the obligation and to perform the act. Damages- This is the compensation which is being provided by the party in order to
cover the loss which were being made by them. It is awarded when the amount of
damages can be analysed and to provide all the loses made to them. Injunction- This is the general equitable remedy which is being awarded to the person at
the time when there is been seen that it is important to make that person bind to do an act.
Court either give the restraining order or can make the person to do any task (Hesselink,
2021).
 Recession- This is mainly a remedy in which court use to change the person to their
original position. As in this the court use to make the parties to generate and bring them
back in original position in which they were earlier as if no contract was being framed.

Rights in contract law Right to file suit- This is the right given by court as in which the party can at any time
sue the other party is any breach is being made by them. This is being given in order to
protect the person from all the losses being suffered. Right to timely payment- It provides that all the amount or the consideration being fixed
between the parties should be paid on proper time period as this provides to make all the
consideration and the amount to be paid on proper time without any delay. Right to disclosure of facts- This is an important right as it provides that all the
individuals who enter in an agreement should disclose important facts and information
related to the working and the agreement. As it serves out to provide that no relevant
material facts can be hide in the contract (Foxcroft, 2021). Right to exclusive ownership- It is the right in which parties will get the ownership of the
goods or the services at the time of agreement being made between them.
Thus, Darwash as due to the breach of contract was being suffered to him due to the
activities of Charlie and Eddie and the loss that were being occurred to him as he can ask for the
damages as compensation and can even go to the court to make him grant specific performance
of contract with some person who has full knowledge about the electric fittings. As their was non
disclosure of material facts which were made between the parties and Charlie has not disclosed
that he has no knowledge about it.
CONCLUSION
Business law provides the rules which are needed to maintain the working in smoother
manner. Contract law frames the agreement made between the parties with legal binding
obligation. It has some important elements like offer, consideration, acceptance and legal
intention. Rights given in contract law are like right to sue, exclusive ownership and many more.
Furthermore remedies in the contract law are injunction, damages etc.

REFERENCES
Books and Journals
Hesselink, M.W., 2021. Justifying contract in Europe: political philosophies of European
contract law. Oxford University Press.
Downe, A., 2020. From Relief to Compulsion and Back Again in Contract Law. European
Review of Contract Law, 16(3), pp.410-431.
Pathak, A., 2019. Overlap of Termination Terms and Principles of Contract Law: The Toba
Trading Case. Indian Institute of Management Ahmedabad.
Cook, T., 2021. The interface between employment law and enforcement, remedies and
sanctions. In Research Handbook on Intellectual Property and Employment Law.
Edward Elgar Publishing.
Mallet, P., Abdijabar, Z.G. and Flayyih, N., 2021. THE PRICE IN FRENCH CONTRACT LAW
AFTER THE 2016 REFORM. Academy of Strategic Management Journal, 20, pp.1-12.
Langille, B. and Eisen, C., 2021. Category Mistake: The Private Law of Contract Is the Wrong
Way to Think about Our Public Law of Freedom of Association. Canadian Lab. & Emp.
LJ, 23, p.1.
Foxcroft, M., 2021. Are Recent Developments in South African Contract Law Regarding the
Interpretation of Contracts and the Role of Good Faith a Threat to the Independence of
Demand Guarantees?. Banking & Finance Law Review, 36(2), pp.237-251.