Issues about Business Law 2022
Added on 2022-09-26
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Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note
Business Law
Name of the Student
Name of the University
Author Note
BUSINESS LAW1
Part A
Issue
The issues that can be pointed out from the present instance are firstly, whether any valid
contract has been entered into by Forthryt. Secondly, with whom such a contract has been
created. Thirdly, at what point of time the contract has been concluded with that person.
Rule
A valid contract can only be formed if there is an offer expressing the willingness of the
offeror to bind himself and the offeree to the terms of the same as well as the acceptance of
the offeree to such an offer. Such an agreement created by a valid offer and the acceptance of
the same needs to contain all the requisites of a valid contract to attain the status of the same.
This can be supported with the case of Rose & Frank Co. v JR Crompton & Bros Ltd. [1923]
2 K.B. 261.
The requisites that makes a contract valid are an agreement created with a valid offer
being validly accepted, the objective of the parties to bind themselves legally to the contract,
a consideration moving for both the parties, the capacity of the parties to form contract and
the legality of the subject matter of the contract. This can be supported with the case of Jones
v Vernons Pools 1938.
Any contract that has been created validly and has been instituted with all the
requirements of a valid contract being present is binding upon all the parties to the contract
and the parties are required discharge their obligation with respect to the same. Any
discrepancy in their discharging of their duties under the contract infringing the right of the
other party would amount to a legal liability to have been incurred by the party in violation.
This can be best explained with the case of Appleson v Littlewoods 1939.
Part A
Issue
The issues that can be pointed out from the present instance are firstly, whether any valid
contract has been entered into by Forthryt. Secondly, with whom such a contract has been
created. Thirdly, at what point of time the contract has been concluded with that person.
Rule
A valid contract can only be formed if there is an offer expressing the willingness of the
offeror to bind himself and the offeree to the terms of the same as well as the acceptance of
the offeree to such an offer. Such an agreement created by a valid offer and the acceptance of
the same needs to contain all the requisites of a valid contract to attain the status of the same.
This can be supported with the case of Rose & Frank Co. v JR Crompton & Bros Ltd. [1923]
2 K.B. 261.
The requisites that makes a contract valid are an agreement created with a valid offer
being validly accepted, the objective of the parties to bind themselves legally to the contract,
a consideration moving for both the parties, the capacity of the parties to form contract and
the legality of the subject matter of the contract. This can be supported with the case of Jones
v Vernons Pools 1938.
Any contract that has been created validly and has been instituted with all the
requirements of a valid contract being present is binding upon all the parties to the contract
and the parties are required discharge their obligation with respect to the same. Any
discrepancy in their discharging of their duties under the contract infringing the right of the
other party would amount to a legal liability to have been incurred by the party in violation.
This can be best explained with the case of Appleson v Littlewoods 1939.
BUSINESS LAW2
The offer and the acceptance that has been creating the subject matter of the contract is to
be made with a clear intention of the parties to create a legal proximity and the terms upon
which the contract has been created needs to have a reasonable clarity and certainty. This
needs to be elucidated with the case of Simpkins v Pays [1955] 1 WLR 975. While accepting
an offer validly all the terms of the offer needs to be agreed upon and no deviations from any
of the terms can be made to render the acceptance as valid. This come in lines with the case
of Smith v Hughes (1871) LR 6 QB 597.
When a person while accepting an offer alters any of the conditions contained in the offer
or has failed to make acceptance with respect to any of the terms, it would amount to a
counter offer and not a valid acceptance, which can be best explained with the case of Hyde
v. Wrench (1840) 3 Beav 334. Such an offer needs to be accepted to for creating a valid
contract. Again, in case of postal rule, acceptance needs to be considered as effective as soon
as the letter containing the same is posted giving rise to a valid contract as has evolved from
the case of Adams v Lindsell (1818) B & Ald 681.
Contract, to attain the status of enforceability for the obligations raised under it, would
require the objective of the parties to be bound in a legal relationship prior to the institution
of the contract. An agreement with an essence of social arrangement cannot be treated as a
contract as per the principle established in the case of Merritt v Merritt [1970] EWCA Civ 6.
Application
It can be seen from the facts of the case that the experience of Forthryt with the Metro
Publishers during the success of the first book he has written was not good, which has made
him to approach Boswold whom he met in a party in the month of February. Forthryt also
wanted the price for the same to be above 40 grand and Boswold thought this price to be fair.
This needs to be seen as an informal agreement which is incapable of being in forced owing
The offer and the acceptance that has been creating the subject matter of the contract is to
be made with a clear intention of the parties to create a legal proximity and the terms upon
which the contract has been created needs to have a reasonable clarity and certainty. This
needs to be elucidated with the case of Simpkins v Pays [1955] 1 WLR 975. While accepting
an offer validly all the terms of the offer needs to be agreed upon and no deviations from any
of the terms can be made to render the acceptance as valid. This come in lines with the case
of Smith v Hughes (1871) LR 6 QB 597.
When a person while accepting an offer alters any of the conditions contained in the offer
or has failed to make acceptance with respect to any of the terms, it would amount to a
counter offer and not a valid acceptance, which can be best explained with the case of Hyde
v. Wrench (1840) 3 Beav 334. Such an offer needs to be accepted to for creating a valid
contract. Again, in case of postal rule, acceptance needs to be considered as effective as soon
as the letter containing the same is posted giving rise to a valid contract as has evolved from
the case of Adams v Lindsell (1818) B & Ald 681.
Contract, to attain the status of enforceability for the obligations raised under it, would
require the objective of the parties to be bound in a legal relationship prior to the institution
of the contract. An agreement with an essence of social arrangement cannot be treated as a
contract as per the principle established in the case of Merritt v Merritt [1970] EWCA Civ 6.
Application
It can be seen from the facts of the case that the experience of Forthryt with the Metro
Publishers during the success of the first book he has written was not good, which has made
him to approach Boswold whom he met in a party in the month of February. Forthryt also
wanted the price for the same to be above 40 grand and Boswold thought this price to be fair.
This needs to be seen as an informal agreement which is incapable of being in forced owing
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