Business Law Appleson v Littlewoods Issue 2022

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

BUSINESS LAW2
Part A
Issue
The concern that can be drawn from the instant scenario is whether any legally valid and
enforceable contract has been created by Forthryt. If any such contract has been created
exactly at what point of time it has been created and with whom.
Rule
The contract can only be considered as valid in the eyes of law if it has been concluded by
an offer coming from the offeror and receiving the assent from the person to whom the offer
has been made and has been consisting of all the essential requisites of a contract which is
valid. The need for the essential requisites to be present in a valid contract to render it
enforceable can be explained in lines with the case of Appleson v Littlewoods 1939. The
essential requisites that extends the status of validity to a contract are offer as well as
acceptance resulting in a valid contract, the motive of instituting a valid legal relation, a
consideration accruing for the parties involved in a contract, the capacity pertaining to the
parties to enter into a contract and the subject matter of the contract being lawful. The
institution of a valid contract that has been compliant with all the requisites of a contract
binds the parties to be legally responsible and any contravention of their responsibilities of
the contract would land them in legal consequences. This can be explained with the case of
Rose & Frank Co. v JR Crompton & Bros Ltd. [1923] 2 K.B. 261.
The primary requisite for a valid contract is an offer that has been subjected to acceptance.
Such an agreement also requires to be accompanied with and objective of the formation of
legal connection between the parties and created upon terms that are clear and certain as can
be supported by the case of George Hudson Holdings Ltd v Rudder (1973) 128 CLR 387.

BUSINESS LAW3
The acceptance of an offer needs to be made with respect to every term of the offer and no
disagreements should be presented with respect to any of the offers as has been seen in the
case of Smith v Hughes (1871) LR 6 QB 597.
As per the principles established in the case of Hyde v. Wrench (1840) 3 Beav 334 an
offeree is required to accept the terms pertaining to the offer in this entirety and without any
alteration in the terms. Such acceptance which has been qualified by some alteration in the
terms would result in counter offer which is required to be accepted by the other party the
same can be treated as the rejection of the prior offer. However, according to the principles
that has been established in the case of Adams v Lindsell (1818) B & Ald 681, in case of
postal rule, the time of communication of an acceptance creating a valid contract is the time
at which the letter has been posted containing the communication.
There should be an intention of the parties involved in a contract to have the intention to
be engaged in a legal relation that has enforceability under the legal regime. As the per
principles that has been established in the case of Ermogenous v Greek Orthodox
Community of SA Inc [2002] HCA 8, social agreements should not be given the status of a
valid contract.
Application
In the instant situation, Forthryt has been looking for the publisher to publish his second
book has he has not been treated well by Metro Publishers during the publication of his first
book. At a party held in February he met another publisher named Boswold and expressed his
desire to sell his book to Boswold for a price more than 40 grand. This has been agreed to be
a reasonable price by Boswold. This is required to be considered as an agreement as the same
has not been made with a wish to engage in a legal relations and is more of a social