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Unit 21 Aspects of Contract and Business Law P1

Describe and then relate these elements to the case study.

Laws, contracts and customs are rules that shape our everyday lives. These date back for centuries. There are a number of different elements that make up a valid contract that can be used in business today, these consist of the following.

Offer
Offers are made to sell or buy a product from an individual or company. Unilateral offers are offers that apply to everyone, i.e. an advert in a newspaper. An offer must be precise, specific and certain. In order for there to be a contract then an offer must first be in place.

Rocky Tops offer indoor climbing sessions to the public upon which they choose to accept or not, depending on the price. Their offer to host indoor climbing lessons must be clear on what the customer will get in return for their money, this would be things such as how long the sessions last, what will be available to them and whether equipment is included within the price.

Consideration
Consideration is when an individual or company assesses what they would get out of the offer and what benefit it would be to them.

So when Nick saw the poster and went to buy a new set of ropes and crampons he had to consider what would he was getting out of the deal. He has to hand over his cash in order to receive the ropes and crampons and needs to assess whether it is a beneficial outcome to him.

Two Parties
A contract is between two parties. One contract cannot provide details for anymore participants as it wouldn’t be certain enough. In order for it is certain one contract is kept between two parties. One party will offer a deal and the other party has to consider whether to accept it or not.

An example of a contract formed between two parties within the case study is Rocky Tops and Julie. This is when Julie decides to book a block of 6 climbing lessons and signs a document stating that the sessions can be cancelled by either...
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