Understanding Business Law: Contract Formation, Enforceability, and Legal Implications

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Table of Contents
Part A...............................................................................................................................................2
Issue 1..........................................................................................................................................2
Issue 2..........................................................................................................................................4
References........................................................................................................................................6
Part B...............................................................................................................................................7
References........................................................................................................................................9

2BUSINESS LAW
Part A
Issue 1
To ascertain whether Ian and Ben formed an enforceable contract and whether Ian is
likely to succeed with his claim against Ben.
Rule
The existence of an agreement between parties depend on the presence of a valid offer
and acceptance. When a party asks another to do or not to do certain task for, it is said that the
person has placed an offer to the other person. An offer must be communicated clearly and
unambiguously with the other person. A person who makes the offer is called offeror and to
whom the offer is made, is called the offeree. A clear indication of the offer by the offeror
regarding his willingness to form a legally binding relation with the offeree must be establish to
form a valid contract. An offer may be expressed or it may be implied, it could be written or it
can be oral as well. An offer speaks about the offeror’s intention to make himself bound to
execute the agreement with the offeree, without any further negotiation regarding the time of
execution or amount of consideration (Knapp, Crystal & Prince, 2016). An offer is generally
indicated for a specific offeree for every agreement involves specifications, which could be
executed, by certain class or category of people. However, offer can be made to the whole wide
world as well, in that case it would be termed as an ‘invitation to treat’ which is generally a
request to people to consider the offer and respond accordingly as held in Pharmaceutical
Society of GB v Boots Cash Chemists (Southern) Ltd [1956] EWCA 6. An offer is made
available to the offeree until it is withdrawn by the offeror himself.
On the other hand, an offeree is supposed to accept the offer if it suits his need. On his
acceptance of a valid offer, the agreement becomes legally binding on both of them. Acceptance