Business Law Assignment: Contract Law Analysis and Case Studies

This business law assignment examines contract law, focusing on the essential elements for creating a valid contract. The assignment references key case law such as Smith v Hughes and Carlill v Carbolic Smoke Ball Company to illustrate the principles of offer, acceptance, and the intention to create legal relations. The assignment analyzes a scenario involving Hemant and his communications with Liam, Jascinta, and Mirav, concluding that no valid contracts were formed due to the nature of the communications and the absence of an offer in the initial interaction with Liam and Jascinta. The analysis also considers the nature of the communication with Mirav and the lack of intent to create a legally binding agreement.

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

1BUSINESS LAW
Issue
Whether Hemant is contractually bound to Liam, Jascinta and Mirav.
Rule
For the purpose of creating a valid contract there are certain elements that are required to be
adhered to which includes an offer and its valid acceptance, the intention of the parties to indulge into
legal relations, a valid consideration, the legality of the subject matter and the capacity of the individuals
involved. This can be illustrated with the case of Smith v Hughes (1871) LR 6 QB 597.
An invitation to treat does not depicts an offer that will be construed as a creation of contract on
being accepted as has been conceived with the case of Carlill v Carbolic Smoke Ball Company [1892]
EWCA Civ 1.
Mere social agreements without any intention of creating a valid contract would not amount two
unenforceable contract being created as has been contended with a case of Rose & Frank Co v JR
Crompton & Bros Ltd [1924] UKHL 2.
Application
In instant situation, the advertisement put by Hemant was an invitation for making a valid offer
that requires to be accepted by him for the purpose of creation of a valid contract. This requires both the
communications made by Liam and Jascinta to be an offer made against an invitation to make offer and
not an acceptance as there was no offer in the first place. Hence, no contract has been created.
The communication made with Mirav by Hemant was for the purpose of making an offer to Mike
for a price of $24,500. This needs to be treated as a mere promise without the intention of creating a valid
contract.
Conclusion

2BUSINESS LAW
No contract has been created as to with Liam, Jascinta and Mirav.

3BUSINESS LAW
Reference
Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1
Rose & Frank Co v JR Crompton & Bros Ltd [1924] UKHL 2
Smith v Hughes (1871) LR 6 QB 597