Business Law and Ethics: Essentials of a Valid Contract and Remedies Available

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BUSINESS LAW AND
ETHICS

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TABLE OF CONTENTS
Contents
INTRODUCTION.....................................................................................................................................2
MAIN BODY.............................................................................................................................................3
Discussion of Blue Prints of the Valid Contract..................................................................................3
Discussion the Court System of UK and Advise Parties Which Court They Can Approach...........5
Advise Hilary Whether a Contract present among Her and Others That are Eleanor, Amy and
Olivia......................................................................................................................................................5
Discuss Various Remedies Available to Them.....................................................................................6
CONCLUSION..........................................................................................................................................6
REFERENCES..........................................................................................................................................6
INTRODUCTION
Law of contract is a piece of law which is used mostly in every transaction which is
related to the business. This law helps in determining the rights and obligations of the contracting
parties. It also helps in protecting the rights of the contracting parties. It is necessary that every
agreement which is formed must be having all the necessaries of the valid contract because on
the presence of all the essentials of a contract only, the court will give the parties some relief in
form of compensation. It is the duty of the court to determine the validity of the contract by
seeing that all the essentials of the valid contract are present in the disputed agreement or not. In
this report it will be seen that what all are the essentials of the valid contract such as Offer,
Acceptance and Consideration by referring various case laws. Further certain fact based
problems will be studied and it would determine whether any valid contract exist between the

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parties or not. The various remedies which are present to the contracting parties under the law of
contract will also be discussed.
MAIN BODY
Discussion of Blue Prints of the Valid Contract
A contract is a legally enforceable agreement that is created for a particular purpose
between two or more persons. This document will be having certain terms and conditions which
will be determining the rights and duties of each contracting party. If any of the party violates the
terms and conditions of the agreement, the other party (who has faced the loss due to violation of
the contract) gets right to approach the court of law and claim the compensation for the loss
occurred.
The court in this case will determine and examine the validity of the valid contract as
well as will see whether all the essentials of a valid contract are available or not in order to award
damages(Allen and Kraakman, 2016).
The first importance of a valid contract is Offer which must come from the side of the
offeror. The individuals making the offer will be called as Offeror whereas the person to whom
the offer would be made is known as Offeree. The offer is nothing but a proposal which comes
from the side of one person and gets accepted by another person. Many times individual get
confused among an offer and an Invitation to Offer. The major example of the invitation to
offer is advertisements or notices which are put by people. Here these notices will be stated as an
invitation to offer as well as individual who will be seeing these notices or advertisements will be
said as making an offer. The landmark judgement in that the court has differentiated between an
offer along with an invitation to offer is Harvey vs Facey. In this famous case the Privy Council
has difference between these two terms. There was a question before the Privy Council whether
the telegram by which the lowest price of the property was quoted should be said as an offer or
an invitation to offer. Here the Council clarified that it was an invitation to offer and when the
real offer came from the of offeror’s side who was plaintiff in this case, it was rejected by the
defendant(Ashcroft, Ashcroft and Patterson, 2016).
In the other judgement of Fisher vs Bell(1961), it was carried that all the items which are
presented in the shop or any of the showrooms, will be stated as an invitation to offer. The