Laws on Commercial Relations : Report

Added on - 15 Jan 2020

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LAW
TABLE OF CONTENTS1. ISSUES........................................................................................................................................12. LAW............................................................................................................................................13. APPLICATION...........................................................................................................................24. CONCLUSION............................................................................................................................3REFERENCES................................................................................................................................4
1. ISSUESIn accordance to the factual scenarios and the applicable legal framework, followingissues shall have been deciphered to analyze the facts:Considering that the offer was responded with an acceptance with modified terms,whether a valid contractual relation was formed between Bob and Mike?Considering the fact that revocation of acceptance was made pursuant to making aneffective acceptance, whether the contract could be considered terminated?Considering that Bob agreed to give a computer in return of certain favours made bySteve could bind Bob under an enforceable relation.Considering the fact that Bob signed the contract by mistake, can still make him liable toperform.2. LAWAn enforceable contract can be formed only if all the essential elements of contract arepresent in the process of formation. For instance an effective offer shall be responded with anunconditional acceptance. InHyde v. Wrench(1840) it was opined by the court that in the eventan offer is responded with modification in the terms, then it shall be considered as a counter offer(O'Sullivan & Hilliard, 2016). In addition, it was also held that communication of a counter offerhas an effect of ceasing the existence of the original offer.The law governing offer and acceptance differs in the case communication between theparties have taken place through the medium of letters. Hence, in such a case Postal Rule is saidto be applicable, in accordance to which an acceptance shall be bound against the offeror as soonas it is put into transmission (Hogg, 2011). However, it becomes bound against the offeree onlywhen such a letter is received by the offeror. In the case ofByrne & Co. v. Leon Van Tienhoven& Co.(1880) it was opined by the court that though an effective acceptance made through postmakes the parties bound to perform the contract, revocation of acceptance may also beconsidered valid if made in a reasonable manner (Szczerbowski, 2015).In order to formulate a valid contract, it is essential for the parties to have an intention toform a legal as well as binding relation. In the case ofBalfour v. Balfour(1818) it was ruled bythe court that in the cases of social and domestic relation the presumption of existence of such1
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