The acceptance regarding the offer

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

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Part 1
Issue
The issue in the given scenario is that whether the promises that have been forwarded by
Sergio in favor of Alexander, his son, Liam, his secretary, and Natasha, local newsagent, shall
have a binding nature or not.
Rule
The essentials that are required to give effect to a valid contract are offer, the acceptance
regarding the offer, intention to give effect to legal relation, consent, lawful or legitimate object,
and lawful or legitimate consideration.
The case of Bettini v Gye [1876] 1 QB 183 is considered to be relevant case in this
regard. In this particular case, it had been stated that this case must be regarded as an example in
which the violation in relation to a contract was not very deep or intense and hence, it was not
considered to be a violation in relation to a contract. In the aforementioned case, the singer was
employed to sing songs and deliver performances for an approximate time period of a month.
This schedule included a time period of approximately six days of doing practices and rehearsals.
The singer was unable to attend the practices and rehearsals. However, the inability of the singer
to attend the practices or rehearsals was not considered to be a violation in relation to the
condition, and compensation or damages shall not be considered as the sole remedy that might be
available in the given situation.
The case of Poussard v Spiers and Pond [1876] 1 QBD 410 shall be considered to be a
relevant case in the give scenario. In this particular case, it had been mentioned that a violation
happened in relation to the condition. In the aforementioned case, an actress was employed to

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sing songs and deliver performance in the opera. However, the actress got ill and she was unable
to deliver any performance until several weeks subsequent to the premier. The court passed an
order stating that the violation of the condition caused by the actress in the aforementioned case,
was deep and intense and caused a variation of the primary facet of the condition. Hence, the
opera had the right and entitlement to terminate the contract and employ another actress to
deliver performance at the opera.
The case of Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 shall be
considered to be a significant case in this regard. In the case, it had been mentioned that if a
particular term or condition provided in a given contract is violated by a party, then the party that
suffered shall be entitled to rescind the contract. However, in the case mentioned above, it had
been stated that even when the parties themselves particularly specify an explicit requirement in
the form of a condition, the term condition shall not be considered to be conclusive all the time.
The situations and instances in relation to the agreement may direct and specify that the parties
regarding the contract were without any kind of intention of utilizing the term in the
methodological sense of the term.
The case of Dunlop Pneumatic Tyre Co Ltd v Selfridge Ltd [1915] AC 847 shall be
considered to be an important case in this regard. In this contract, it had been stated that if a
promise needs to be lawfully, officially or legally binding, then it should mandate any particular
thing in return. It shall be the responsibility of the promisee to demonstrate that accept the
promise either by performing any kind of act or by forwarding a promise to perform or abstain
from performing any act.
The case of Taylor v Caldwell [1863] 3 B. & S. 826 is a relevant case in this regard. In
this case, an opera house was borrowed by rent in order to conduct concerts and shows.

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However, the opera house was ruined and demolished because of fire. It was held by the Court
that this particular contract shall be frustrated as the exact object on which this particular contract
rested on was finished and is not existing anymore.
Application
In the given scenario, Sergio is an individual who forwarded promises to make payment
in relation to Alexander, his son, Liam, his secretary, and Natasha, local newsagent, if they fulfill
certain conditions.
It may be said that all the essentials that are required to give effect to a valid contract
such as the offer, the acceptance regarding the offer, intention to give effect to legal relation,
consent, lawful or legitimate object, and lawful or legitimate consideration, are present in the
given scenario.
The cases of Bettini v Gye [1876] 1 QB 183 and Poussard v Spiers and Pond [1876] 1
QBD 410 shall be applied in the given scenario. In these particular cases, the deepness and
intensity regarding the conditions in contracts had been discussed. It had been stated that
contracts may be cancelled based on the intensity of the violations of conditions, which may be
caused by the parties. Hence, it may be said that in the given scenario, the individuals, in relation
to whom Sergio forwarded promises, should perform their obligations and give effect to the
contract.
The case of Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 shall be
applied in the given scenario. It may be said that in case of a valid contract, if a particular term or
condition provided in a given contract is violated by a party, then the party that suffered shall be
entitled to rescind the contract.