Report on the Formation of Contractual Relationships: Law of Contract

This report provides a comprehensive analysis of contract law, beginning with a definition of contract law and its fundamental elements, including offer, acceptance, and consideration. It then examines the English legal system, outlining the court structure and the process for pursuing court actions. The core of the report evaluates the existence of binding contracts between various parties, analyzing scenarios involving offers, counteroffers, and acceptances. The report distinguishes between situations where valid contracts are formed and where they are not, based on the principles of offer and acceptance. Furthermore, it addresses the remedies available to the parties in case of a breach of contract, referencing relevant case law. The report concludes by summarizing the key findings and implications of the contract law principles discussed. This student assignment is available on Desklib, a platform offering AI-based study tools and resources, including past papers and solved assignments, to aid students in their studies.

FORMATION OF
CONTRACTUAL
RELATIONSHIPS

TABLE OF CONTENTS
TASK ..............................................................................................................................................1
Define contract law and all the blue prints of the contract..........................................................1
Court System in relation to English Legal system and the court action to be pursued by the
parties. .........................................................................................................................................2
Evaluating existence of binding contract between Hilary and :Eleanor, Amy and Olivia..........4
Remedies available to parties. .....................................................................................................5
REFERENCES................................................................................................................................6

TASK
Formation of Contractual Relationship
Define contract law and all the blue prints of the contract.
Contract
A contract can be defined as a promise, breach of which provides remedy or performance
of promise that law in some of the ways recognises as duty. Contract refers to legal obligation
resulting from agreement of the parties and other applicable laws. In most simple words contract
refers to agreement enforceable by law.
Contract can be applied when two of the parties agree over something, and it is been
related to value or money, both parties are in stable conditions and intends to carry forward the
related promises and it is within legal provisions of law (Lehmann and Zetzsche, 2016). There
are mainly two types of contracts in the contact law which are express contract and implied
contract.
 Express contract refers to contract in which all the elements are stated specifically.
 Implied contact binds the parties together via mutual intent and agreement, but express
terms of agreement are not there.
Blueprints of the contract law
Blue prints refer to the main components of the contract
Offer - It is can be defined as appearance of the ability to form contract over the terms which are
specified, which are being made on basis of intention of being bound by terms which is once
received by individual to whomsoever it is being concerned. Offer need to have manifestation
which is objective and is being intended by offer or to become bound by offer on acceptance by
other party. It can be made to an individual or even to a group of people
Acceptance - It can be defined as a consent to have something which is being offered. It has also
been analysed that offer is being accepted based on varied terms and conditions. It is also being
judged objectively. In order to form a contract, acceptance must be made in an authorised and
reliable manner.
Consideration - In contract law, as general rule promise could not be considered as contract
unless providing assistance related to it. It can also be understood as something in value which is
being given for promise and for making promise taken as a contract. It is some detriment to
promisee or benefit to promisor. Consideration must be provided by promisee.
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Contractual intention - In this agreement is not considered as binding contract even it has been
supported by consideration. if does not made with the intention of creating legal obligation. It is
must that intention of the parties is to become legally bound by the contract. As general rule it is
presumed that parties intend to create legal relation.
Form -As general rule, contract could be informal, most of the contracts could be made orally &
in certain cases no written or oral communication is needed. Therefore, exchange which is
informal of the promises could be binding and also legally valid as written contract.
Court System in relation to English Legal system and the court action to be pursued by the
parties.
Court System in the English Legal System
Arrows in the above court structure shows route of appeal in different courts.
Supreme Court
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It is final court for appeal in UK. Appeal in the court are heard over arguable points in
law having significant public importance for whole of UK in the civil cases. Though the court is
highest court for appeal in UK Supreme Court is required to give effect to the European Union
law applicable and to interpret the domestic laws in manner consistent with it. Permission to
appeal is given only, if the point in case of public importance.
Court of Appeal
This court and High Court are considered as the senior most courts of the England &
Wales. It has been analysed that appellate court which is segregated in varied parts which are
Civil and Criminal. (Beale and et.al., 2019). Criminal Division hear petitions of related to
matters which are criminal in nature from Crown Court and the point of laws referred by
Attorney General. Civil division hear appeals in leading cased of family and civil justice from
High Court and also from County Courts at some instances and Employment Appeal Tribunal.
High Court
It hears most complex and serious family and civil cases over first instance. There are
three divisions: Family, Queen's Bench and Chancery. Each court has judicial Head known as
chancellor and President. Queens Bench is biggest division of high court. Chancery court deals
with partnership claims, company law, land law, conveyancing, patent, probate and other
taxation cases (Judicial System of UK, 2020). Family Division contains Court of Protection that
gives judgement on the behalf of people that are not able to make decision for themselves.
Subordinate Courts
Appeal to senior courts is made after it is heard by the subordinate courts.
County Court – National court with purely civil jurisdictions.
Family Court – It deals with most sensitive or difficult cases involving families.
Magistrate Court – It is criminal court , in this all the criminal proceedings start.
Youth Courts – Run above same line but deal with the offenders of ten to seventeen age group.
Courts action to pursue.
Eleanor
No court action is applicable as offer of Hillary is not accepted by Eleanor at agreed
consideration.
Amy
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Binding contract is established when the offer is accepted by the offeree. However power
of acceptance is not terminated till acceptance is within time, counter offer is not made and offer
is not rejected by offeree. In present case, fax was sent for cancelling before the second offer was
accepted by Amy. In present case Hillary can appeal to County Court if contract is breached by
Amy.
Olivia
In present case Olivia could appeal to County court and if not satisfied it could appeal to
Court of Appeal against Hilary.
Evaluating existence of binding contract between Hilary and :Eleanor, Amy and Olivia
The contracts is said to be binding when it is accepted by the offeree with the same terms
and conditions as specified in the offer.
Eleanor
In the present case first offer was made for 15000 which was rejected by Eleanor by
making counter offer for 10000. Hilary made a second offer to Eleanor for 13000 for which was
no acceptance was received or counter offer was made Eleanor. On this Hilary accepted to sell
for 10000 but this time the offer was not accepted Eleanor. As the offer is not accepted by
Eleanor with the terms in the offer (Hanretty, 2020). Therefore, no binding contract is
established between Hilary and Eleanor which could be enforced by law.
Amy
Hilary offered computer for 1000 which was accepted by Amy. Contract here is
established as and when acceptance is received from other party. Before the acceptance letter
was received Hilary had sent letter for second offer. As per general rules whenever second offer
is made the first offer gets lapse or becomes invalid. Therefore, if second offer is made by Hilary
first offer of 1000 will expire. But in this case on getting acceptance by Amy, Hillary cancelled
the second offer before it was received by the Amy. Therefore, in this case contract is established
on acceptance from Amy and it is enforceable by law if breached by Amy.
Olivia
Offer made by Hilary was an open offer which could be accepted by anyone meeting the
conditions. It constitutes valid unilateral contract which was accepted by performing the
conditions stated in offer. In these unilateral contract requirements of offeree to communicate is
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not there as the intention of acceptance is by full performance (Unilateral Contracts, 2020).
There is a legal contract between Hillary and Olivia
Remedies available to parties.
In the given case study Eleanor has not accepted the offer made by Hilary by making
counter offer which was rejected by Hilary. The second offer was not accepted by the Eleanor
therefore non binding contract was established between them. The non acceptance of offer by
Eleanor means no contract is made between which could be enforced. (Case law Hyde v
Wrench)
In case of Amy acceptance of offer makes it binding contract between the parties. The
offer could not be revoked once it is accepted by the offeror. As per contract it is possible for the
offeror to revoke the offer before it is accepted or received by the offeree. Hilary has revoked the
second offer through fax before the offer was received by the Amy therefore the acceptance to
first offer is binding contract between Hilary and Amy (Poncibò, 2017). The non compliance of
contract by Amy would amount to breach of contract for which Hilary could file suit to County
court and Court of Appeal.
The offer made by Hilary was unilateral contract and was accepted by Olivia by
performance. Hilary must have given second advertisement about non availability of painting
before the offer was accepted by Olivia( as in case of Shuey V United States). It could make
appeal to County Court or Court of Appeal.
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REFERENCES
Books and Journals
Lehmann, M. and Zetzsche, D., 2016. Brexit and the consequences for commercial and financial
relations between the EU and the UK. Eur. Bus. L. Rev.. 27.p.999.
Beale, H., and et.al., 2019. Cases, materials and text on contract law. Bloomsbury Publishing.
Poncibò, C., 2017. Book Review: Research Handbook on EU Consumer and Contract Law,
edited by Christian Twigg-Flesner.(Cheltenham (UK) and Northampton (US): Edward
Elgar Publishing Limited. 2016.). European Review of Private Law. 25(4).
Hanretty, C., 2020. A Court of Specialists: Judicial Behavior on the UK Supreme Court. Oxford
University Press, USA.
Online
Unilateral Contracts. 2020. [Online]. Available through :
<https://www.e-lawresources.co.uk/Offer-and-acceptance4.php>.
Judicial System of UK. 2020. [Online]. Available through : <https://www.judiciary.uk/wp-
content/uploads/2016/05/international-visitors-guide-10a.pdf>.
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