Business Law Assignment on Contract Development and Exclusion Clause

Business law
Assignment
Running Head: BUSINESS AND CORPORATION LAW
0
9 / 2 0 / 2 0 1 9
Student Name

Trimester 2, 2019 1
Contents
Part A...............................................................................................................1
Issue.............................................................................................................1
Rules.............................................................................................................1
Application....................................................................................................2
Conclusion....................................................................................................3
Part B...............................................................................................................3
Issue 1..........................................................................................................3
Rule 1............................................................................................................3
Application 1.................................................................................................4
Conclusion 1.................................................................................................4
Issue 2..........................................................................................................4
Rules 2..........................................................................................................4
Application 2.................................................................................................5
Conclusion 2.................................................................................................5
References.......................................................................................................6

Trimester 2, 2019 2
Part A
Issue
In what manner, the contract of Stan has been developed between MacBig
Restaurant.
Rules
To identify the manner of development of a contract, first, it is required to
check whether all the essentials were there or not. These essentials are the
factors without the existence of which a contract cannot be developed. This
would not be wrong to state that in case of absence of any of element, an
agreement remains merely an agreement and cannot be turned into a
contract. Before discussing these factors, it is required to make clear that
parties to the contract are free to choose written as well as an oral mode for
the same. Now, shifting the focus towards the discussion of essentials of
contract, this is to state that the same is mentioned as hereunder:-
Offer:- Any agreement or contract starts with an offer which is a promise
from one party to another. Offer can be understood as a promise of doing
something or opposite to the same i.e. not doing something in the exchange
of performance from the other party to such promise is to make. An offer
must be valid and for the same subject matter, consideration, object, and
parties mentioned under the offer must be valid and legal. Under every offer,
the intention of the offeror to bind the other party must be reflected. Here
offeror is the person who makes and present an offer. While discussing the
offer, another term is also required to be mentioned which is called invitation
to treat under common law. The term is required to mention because too
many people it seems similar to an offer but is different from the one in
actual. An invitation to treat, as the name implies is a general invitation for
offers. In response to such an invitation, other parties make the offer. It
means an offer can be accepted but not an invitation to treat since it is an
early stage of the offer. Such an invitation to treat is not necessary to
present in each case. To make the difference between these two terms clear,
the decision of various cases can are required to have a look upon. The most
significant decision was given in the case of
Pharmaceutical Society of Great
Britain v Boots [1953] 1 QB 401 and
Fisher v Bell [1961] 1 QB 394 where it
was provided that goods which are displayed in shelf or the shop are amount
to an invitation to treat and must not be considered as an offer. When a
customer takes the goods to the till it amounts to an offer and after that