CASE STUDY ON VALID CONTRACT

Running Head: CASE STUDY
CASE STUDY
Name of the Student
Name of the University
Author’s Note

CASE STUDY1
Table of Contents
Issue:................................................................................................................................................2
Rules:...............................................................................................................................................2
Application:.....................................................................................................................................3
Conclusion:......................................................................................................................................4
Issue:................................................................................................................................................4
Rules:...............................................................................................................................................4
Application:.....................................................................................................................................6
Conclusion:......................................................................................................................................7
REFERENCE:.................................................................................................................................8

CASE STUDY2
Issue:
The issue in the case is whether the contract between Rick and Cliff was legally
enforceable.
Rules:
Elements of a contract:
 Offer and acceptance: these are the most important elements for the formation of a valid
contract. Offer means when a proposal is made for the negotiation of the terms and
conditions of the contract including the contractual obligation, consideration, time period
and other terms. In Smith vs Hughes [1871] LR 6 QB 597, it has been stated if a
contract specifically mentions a particular type of acceptance, then the express type of
acceptance should be adhered to for a valid contract formation.
Acceptance means the mutual assent of both the parties to the terms and conditions of the
contract. Once the offer has been accepted, the contract becomes valid and legally
enforceable provided other elements are also satisfied. However, it is a general rule that
acceptance should be clear, loud and specific to the intention of the parties which should be
well communicated to the offeror. Silence is not considered as a valid mode for acceptance
(Felthouse vs. Bindley [1862] EWHC J35). As a general rule, it is assumed that the contract
become enforceable when the acceptance was posted by the party in case of acceptance is
expressly mentioned to be made by the means of post (Adams vs. Lindsell [1818] 106 ER
250). However, when the mode of communication is instantaneous, the rule is reversed as
explained in Entores Ltd vs. Miles far East Corporation [1955] 2 QB 327, where the