University Business and Company Law Assignment: Contract Analysis

This assignment delves into the intricacies of business and company law, specifically focusing on contract formation. It begins with an introduction to the significance of business and the legal frameworks designed to protect business activities. The core of the assignment is a detailed analysis of the essential elements of a valid contract, including offer, acceptance, and consideration, illustrated through a case study involving two students and a collection of Eurovision memorabilia. The analysis covers the legal principles of offer and acceptance, and the importance of consideration, with references to case laws. The assignment also outlines the remedies available for breach of contract, such as damages, injunctions, and rescission. The conclusion summarizes the key elements of contract law, emphasizing their importance for business organizations.

Business and Company Law

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Half of the world is denoted as a set up various organisation which has been involved in
different sort of work. It has been observed further that most of these organisation are dealing
with the business.(Sealy, Worthington, 2013. ) Business is a very crucial and important practice
which has been carried out by most of the organisation and concerning out these activities,
government has made several norms and application in order to protect the activities which
which have been carried out by business organisation. It is very important to protect the rights
and duties a of those members who have been involved in any kind of business. The Aim of the
project is to develop a skill full knowledge about various laws which are enacted for the
protection of business and its organisation. The project shall reflects various aspects of contract
including all the essential elements to be included in a contract.
QUESTION 1
Formation of a contract in a valid form is very important.(Kalss, 2015.) All those parties
who have been intended to enter into a contract have to make sure that the contract which is
being made between the parties shall be carried out in a particular format and all the important
elements are to be present in the formation of a contract for an example in the present scenario it
has been given that a student union has been organised in which a contract has been formed
between two students who participated in the union. Mig offered Julian his collection of
Eurovision Memorabilia for 100 Euro. Julian ask for the time to think as the collection was very
good but the price which has been offered to Julian was out of budget. In this case an offer has
been made by Mig to Julian about selling his collection.(Filatotchev, Jackson, Nakajima, 2013.)
Offer has been first essential element towards the formation of a valid contract. When Julian
mentioned to think about seven days the Mig said that he will keep the offer open for seven days
from tomorrow. Here no acceptance has been given by Julian as time has been given of seven
days to show acceptance. Julian can show her acceptance towards offer after seven days. After
two days Julian sent a letter to Mig mentioning that whether he could consider the sell of
collection at 800 Euro. Here a a consideration and acceptance has been shown on the part of
Julian. It has been further indicated by the statement of Julian that she has a interest to enter into
a contract with Mig but he took it in other way and assumed that Julian will not buy the
collection at 1000 Euro and sold that collection to other people as he knew that those people

shall be ready to buy that collection on the ask price. After five days when Julian realised that the
week is going to be over and no revert back has been received from Mig, she decided to send a
letter to Mig about accepting his offer Julian's letter, crossed in the post with a letter from Mig
telling him that the memorabilia had been sold to Karen. It has been further seen in the case that
a disappointed has been accounted on the part of Julian as she had buyers lined up whop was
willing to pay Euro 1500 for the collection.
(Miller, 2016.)According to the law of contract when a contract has been formed between the
parties it is very important that formation of a contract should be done by adding all the essential
elements. Without the essential elements, a valid contract cannot be formed and hence when the
contract has been entitled as void then it shall not raise any kind of legal liability on to the
parties. The various essential elements to formation of a valid contract are:-
Offer- when the contract has been made by the party then it is the key principle that one party
should make an offer to another party.(Hannigan, 2015.)Such offer shall be based on a legal
object comprising legal entity. An offer cannot be established on illegal object. While making an
offer party must consider that according to contract of law an offer shall be made on a legal
object
Case law: Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256. it has been held in this case that an
offer has been made to world by giving an advertisement in newspaper about the smoke ball
which will cure Influenza flue. Plaintiff took the course but still fall ill. It was held in this case
that offer is an important element in the formation of a contract.(Wigmore, 2012.) Court of law
in this case had stated that an offer can be made to the world and it shall not be entitled as
unessential element of contract. When an offer has been made by one party and accepted by
another party with lawful consideration then it shall be entitled as valid contract.
Fisher v Bell [1961] 1 QB 394., it is one of most important case in contract law.(Park, LeeKim,
2014.) The case had established that where the goods are displayed in a shop with the price label,
then such display shall be treated as invitation to treat by the seller, and not an offer. Offer is
generally made when the customer present the item to cashier together with payment.
Acceptance- (Stemler, 2013.)when the offer has been made by one party to other then if the other
party has the intention to enter into a contract then he shall by acceptance enter into a contract. It
is very important for the party to accept the offer who has the intention to enter into a contract.

Without an acceptance, a contract cannot be formed by the party. Acceptance has been denoted
as one of the important element in the formation of contract.
Case law: Carlill v Carbolic Smoke Ball Co [1893] 1QB 256. it has further noticed in this case
that when the offer has been made by the company in newspaper with respect smoke balls for
influenza then acceptance has been attained by Carlill.(Bakan, 2016.) An acceptance is an
important for element to contract. When Carlill has accepted the offer that mean she has entered
into a contract. This case has been referred as one of the leading case in both the areas of
acceptance and offer.. in this case it was further held that acceptance must be communicated to
the party who has made an offer. The terms of the acceptance must be exactly match the terms of
the offer and the agreement must be certain.
Entorres v Miles Far East [1955] 2 QB 327.
Consideration- (Law, Buhalis, Cobanoglu, 2014.)when the contract has been formed between the
parties then consideration shall always bee included when there shall be formation of a contract.
A consideration to contract is always based upon exchange of promises for an example in the
present case Mig and Julian had made a common consideration to sell the collection in exchange
of money. (Goldman, Rocholl, So, 2013.)A benefits have been received by both the parties when
a consideration has been made between the parties and each suffer a detriment. Consideration
must be something of value in the eyes of law. The various rules which has been put by the law
of contract in regard to law of consideration. The consideration must not be done in past. The
consideration must be sufficient not adequate.
Case Law: Lampleign v Braithwaite [1615] EWHC KB J17
Chappell v Nestle [1960] AC 87.
Intentions- its also considered as one of the important element for the parties who have been
entering into the contract.(Abdi, Aulakh, 2012.) The parties must show an intention to enter into
a contract. These intention can be shown when the parties make an offer to another party and
such offer shall be accepted by another party, acceptance and offer always show intention of a
party to enter into a contract. The parties who are willing to enter into a contract must not carry a
false intention otherwise there shall be breach in contract which will result into legal liability.
Case law: Balfour v. Balfour [1919] 2 KB 571.
Jones v Padavatton [1969] 1 WLR 328.

when the breach has been occur on the part of either of the party the with the operation of
contract law several remedies have been given which a party can ask for in the court of law and
those are:-
Damages- when the damages have been occurred by the breach of contract then compensation
can granted to innocent party.(Radebaugh, 2014.)
Remoteness:- in this a claimant may also recover all the losses which a party may suffer
Injunction:- these are the form of equitable remedy available on the discretion of judge.
Rescission:- it seeks to place the parties back in their pre contractual position.
Case Law:-Long v Lloyd [1958] 1 WLR 753.
CONCLUSION
It has been concluded from the above discussion that contract is very important for all the
business organisation. The project has highlighted various important elements of contract. Offer
has been explained that why it is important for the parties to include offer, acceptance,
consideration, intention. All the aspect has been explained with context to one particular case of
Mig and Julian. There are various remedies also explained in the project regarding the breach of
contract.

REFERENCES
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Online

Hayes & Storr. 2016. [Online]. Available through.
http://www.hayesandstorr.co.uk/service/general-business-and-company-law/. Accessed on 30th
November 2016.