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Contract Law & Formation Of Contract | Assignment

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Added on  2020-02-12

Contract Law & Formation Of Contract | Assignment

   Added on 2020-02-12

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Contract Law & Formation Of Contract | Assignment_1
Table of Contents1. LEGAL ISSUES..........................................................................................................................12. LAW............................................................................................................................................13. APPLICATION...........................................................................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
Contract Law & Formation Of Contract | Assignment_2
1. LEGAL ISSUESAfter pursuing the given circumstances and facts of the case, the following legal issueshave been framed:Whether all the elements of contract were present to formulate a valid contract betweenBob and Mike?Whether revocation of acceptance communicated on 14th January by Bob, can beconsidered binding against Tom?Whether Bob was bound under a gratuitous contract to give Steve a computer?Whether a valid contract could come into existence for lack of intention?2. LAWIn order to form a valid contract it is imperative for the concerned parties to make a clearoffer and respond to it with an unconditional acceptance. However, in the event the offereeaccepts the offer with alteration or additions in terms of the contract, then a counter offer is saidto have communicated (Anson et. al., 2010, p. 133). The court in Hyde v. Wrench (1840) 49 ER132 has explained that a counter offer destroys the original offer made by the other party, andfrom that point onwards it is no available for the offeree to make an acceptance to the originaloffer. Negotiations or communication for formation of a contract undertaken through the modeof letters is governed by the Postal Rule as contained in the Contract Law. This rule wasestablished in the case Adams v. Lindsell (1818) 106 ER 250, where it was opined thatacceptance by the offeree makes the offeror bound from the moment it is put into transmission.However, it becomes bound against the offeree only when it is received by the offeror. Hence,revocation of acceptance shall be communicated to the offeror in a reasonable time period beforehe has acted to perform the contract (McKendrick, 2014, pp. 109-112). Under Common Law it is essential that a contract shall be supported by a validconsideration for making the concerned parties bound by the terms (Anson et. al., 2010, p. 91).Moreover, it is also essential that the parties shall have an intention to formulate legal relations.In the case of Jones v. Padavatton (1969) 1 WLR 328 it was held by the court that thepresumption of existence of an intention to formulate a legal relation in social agreements shallnot be raised.1
Contract Law & Formation Of Contract | Assignment_3

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