Presence of Contractual Elements - LS311-6: Business Law

This essay discusses the presence of contractual elements in a business scenario and analyzes the legal obligations arising from the actions of the parties involved. The essay highlights the absence of formal legal documentation and the lack of a traditional down payment, making it difficult to prove the existence of a contract. However, the underlying intent of the parties should not be given undue importance, and the paper containing the yarn type and dye specifications can be indicative of the existence of an agreement. LS311-6: Business Law.

Running Header: Contract Essay 1
STUDENT ID:
LS311-6: Business Law

Contract ssayE 2
Date: August 14, 2018
To: Attorney Strami
From: STUDENT NAME
Subject: Presence of Contractual Elements
Hello Mr. Strami,
After considering the information presented by Sonya, certain key aspects have come to
light which might indicate that there was no contractual agreement but rather an informal
conservation between the parties. Further, in the given communication that the two parties
exchanged, there was absence of any other party.
The case facts clearly highlight that Camille has been able to develop a good business
network in the fashion industry. Considering this, it would be quite plausible that Sonya is
known personally to Camille. This is because Sonya serves as Lead Seamstress for Shazam
Clothing Industries. Sonya is engaged in manufacturing of limited edition unique clothing in a
big way in Silkadonia and hence Camille offered 500 pieces of “hot pink and black machine
knitted sweaters” along with matching hats for a price of $ 100 per pair.
It is imperative to note that the lone documentation that the two parties exchanged was
the paper where Camille highlighted the yarn type and specific dye color for the product lot. The
two parties did not engage in any formal legal documentation. Considering this, it can be
concluded that there does not exist any formal offer directed from Camille to Sonya.

Contract ssayE 3
In case of a bilateral contract, the offer is made by the offeror which for the given
scenario is Camille. It is expected that this offer ought to be communicated to the offeree
(Sonya) for acceptance. When Sonya did receive the offer from Camille, it was essential that an
invoice should have been handed over mentioning the exact quantity, specifications and the
agreed price (Miller, 2013). If such an invoice had indeed been given, then Sonya would have
the required evidence to highlight that Camille did owe her money for the order placed. In the
lack of any documentation, the proving of existence of contract would be quite difficult
especially because the traditional 25% down payment has also not been done.
However, it is noteworthy that the underlying intent of the contracting parties should not
be given undue importance. Contract is in the form of legal obligation arising from the action of
the parties which involve intentional exchange of words. If an agreement is formed between two
sides, then it can be held that there is intention to enter into contractual relationship. The fact
that Camille has given the paper to Sonya containing the yarn type and the exact dye to be used
can be indicative of the existence of agreement which then based on either subjective or
objective theory could be used to conclude that binding contract does exist between the two
partie3 (Objective Theory of Contract, n.d.).
Feel free to contact me through phone or e-mail in case of any further queries on this
matter.
Sincerely,
STUDENT NAME

Contract ssayE 4
References
Miller, R. L. (2013). Cengage Advantage Books: Fundamentals of Business Law: Summarized
Cases, 9th Edition. [Kaplan]. Retrieved from
https://kaplan.vitalsource.com/#/books/9781305482920/
Objective Theory of Contract. (n.d.) West's Encyclopedia of American Law, edition 2. (2008).
Retrieved August 14 2018 from
http://legal-dictionary.thefreedictionary.com/Objective+Theory+of+Contract