TASK 1- ASPECTS OF CONTRACT AND BUSINESS AND BUSINESS LAW (P1, P2, and M1) P1
As a trainee Solicitor at Greedies LLP, I will be going through the legal criteria for offer and acceptance in this scenario, the law in relation to the formation of a contract as well as to analyse the impacts and requirements for a valid contract. Contract- is an agreement entered into voluntarily between two or more parties with the intention of creating legal relations. A contract can be oral or in writing, however the most common forms of contract is the written form. Verbal forms of contracts exist where two parties agree through spoken words. This is often done between friends or people who know each other well to agree to be bound legally on a spoken word or a handshake. Written contacts are mainly common in the business world. Contracts are of great importance to businesses because it gives these businesses stability, and some assurance of future income. This allows these businesses to continue development and improvement of the product and the services that they offer, this doesn’t only benefit the company but also the customers. The key elements of a contract are offer, followed by an acceptance, together with consideration and capacity. Offer- is an expression of willingness to contract on specified terms, made with the intention that is to become binding as soon as it is accepted by the person to whom it is addressed. The party who makes an offer is known as the offeror and the party to whom the offer is addressed is known as the oferee. An offer is mainly communicated to the other party usually in writing. Originally the courts would determine whether or not an agreement had been reached between the parties by determining whether there had been a meeting of the minds. Acceptance- is a final and unqualified expression of assent to the terms of an offer. There are also 3 types of acceptance, there are three kinds of acceptance, there is the express, conditional and implied forms of acceptance. Express Acceptance- This usually occurs when a person clearly agrees to an offer or agrees to pay a draft that is presented for payment, such as “I accept your offer”. Stacey Sraha
Implied Acceptance- This type of acceptance is one that is not directly stated but is demonstrated by any acts indicating a person’s assent to the proposed bargain. An example of when an implied acceptance occurs is when a shopper selects an item in a supermarket and pays the cashier for it. The shopper’s conduct indicates that he or she has agreed to the supermarket owner’s offer to sell the item for the price stated on it. Conditional Acceptance – This is sometimes also known as a qualified acceptance. This usually occurs when a person to whom an offer has been made tells the offeror that he or she is willing to agree to the offer provided that some changes are made in its terms or that some condition or event occurs. Offer is obvious in this scenario, the reason is because Justfones Company invited Mrs May to pay £35a month for the newest Samsung Galaxy, but Mrs May rejected. Also in this scenario there was an invitation to treat because the Samsung Galaxy was originally on display for a price of £25 before it got changed to £30 per month, then to the final price of £35 a month. Counter offer was also present in this situation because when Mrs May was about to get the contract for her daughter for £25 a month it increased to £30, she was willing to pay £27 a month but her counter offer got rejected. So in this scenario offer was presented but not acceptance, because Mrs May was not willing to pay the price of £30 per month for the phone, before it given got to the price of £35 per month. From my above explanation of acceptance, it clearly indicates there is no form of acceptance in this situation. Examples of where it shows no sign of acceptance is “Mrs May said she would see her lawyer because she was accepting the offer Justfones had made the other day before...
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