Legal Studies and Negligence Law: Elements and Application

Running head: LEGAL STUDIES
Legal Studies
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1LEGAL STUDIES
Question 1:
Issue
The issue related to this scenario is whether a valid contract was formed between Ann
and Jack.
Rule
It can be said that as per the Contract Act, a contract is referred to an agreement
between two or more parties that are enforced by law. A contract can be formed either orally
or in a written format. As per the law, it has been observed that a few contracts can be formed
under seal. Contracts can be either formal or simple. A simple contract is defined as that
contract, which is not made under seal. On the other hand, formal contract is referred to as the
deed, which must be in a written format and signed by both the parties of the deed. However,
there must be a witness when the deed is formed. The basic elements constitute the formation
of a contract. Bodies of laws, which are not codified but have developed with the help of
judicial interpretations, are known as Common Law in United Kingdom. For an agreement to
be legally enforceable, it should include the three elements. Firstly, an offer and an
acceptance of that offer must be present. Secondly, there must be consideration involved in
the offer. Consideration means something of value given by each of the parties for exchange
of promises. Thirdly, there must be an intention that will create legal relations. Fourthly, there
must be a scenario of mutuality of obligation. This refers to a situation where both the parties
will agree with the terms and conditions of the agreement. Fifthly, there must be involvement
of competency and capacity of the parties. Lastly, a written instrument should be present
when a contract is being formed. Therefore, if all these essential elements are present when a
contract is formed then it will be considered a valid one. While dealing with the cases that
legally bind the contracts, usually the Courts hear the same sort of breach in this situation.

2LEGAL STUDIES
However, if any of the essential constituents are not present then it will not hold any kind of
legal value and hence it cannot be taken to Court. On the other hand, if there is any kind of
breach or dispute arising out of the same between both the parties involved.
When an offer gets determined in any specific situation then the Court will infer if
there is an involvement of acceptance that is accompanied the offer. An acceptance can be
considered valid if it has been made devoid of any variation of the terms that is linked to the
original offer or the clarification that is associated with the offer. Thereafter, while dealing or
inferring acceptance, it can be considered that within the time which is stipulated in the
contract. At the time of binding the contracts, the same must be accepted within the time-
period as efflux of the acceptance time. It however, leads to a revocation of the original offer
as it have been mentioned in the judgment in the case of Crown v Clarke (1927) 40 CLR 227.
The time factor is not the only essential component that is involved in this situation.
Acceptance of the offer without any variation to the original terms and devoid of the
clarifications is also considered. When there is variation of the original terms in the
acceptance of the contract regarding the same issue, it will be considered as a counter-offer.
However, a counter-offer is not considered a valid acceptance of the offer presented. In the
case of Felthouse v Bindley(1862) 142 ER 1037 it was presented that an original offer was
laid down. In the case of Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401,
it was held by the Court that there was no offer on the part of the shopkeeper rather it was an
invitation to treat. In Balfour v Balfour [1919] 2 KB 571, the nature of the domestic
agreement was such that it did not create any legal relationship.
While dealing with the rights of the parties to a particular contract and their
succeeding obligations, the basic step is to determine the existence of a valid contract. The
basic consideration related to this situation states that a fact of the case should be established
in the verification of the valid offers and acceptance. These two terms are the most essential