Law of Contract

Running head: LAW OF CONTRACT
Law of Contract
Name of the Student
Name of the University
Author Note

1LAW OF CONTRACT
Table of Contents
Question 1......................................................................................................................2
Question 2......................................................................................................................4
Reference List................................................................................................................6

2LAW OF CONTRACT
Question 1
Issue
The issue is to determine:
i. Whether the buyer has a potential claim against the seller.
ii. Whether the seller can defend him from the buyer’s claim
iii. Whose claim would prevail if the case goes to the court
Rule
Offer and acceptance, being one of the most essential element to form a binding
contract, they needs to be served to the other party properly (Beale et al., 2018). An offer and
acceptance when rightly communicated between the parties and are accepted, it forms a
binding contract. An offeror must communicated about the offer to the offeree, who can
either accept it or reject it right away; once accepted, he cannot reject it or modify the terms
later (McKendrick, 2014). An offeror may revoke his offer right before the offeree accepts it
or even when the offer has not made it to the knowledge of the offeree or only after the offer
period has end. Similarly, the offeree can revoke his acceptance right when he receives it, as
once accepted it cannot be rejected later. Once an offer has been made by an offeror and it
has been accepted by the offeree, the offeror cannot change the terms and conditions of
such offer, for it was the initial offer which the offeree had agreed to and any changes
pertaining to such initial offer cannot be changed unless a new agreement is made or the
initial agreement is reformed by mutual consent. However, if the offeree does not agree to
reform the existing contract, the offeror cannot do it on his own for it would amount to breach
of contract (Beale et al., 2018).
The parties entering into the contract must have the capacity to enter into the
agreement. A person must not be a: minor, unsound mind, bankrupt, intoxicated or a