Unit 21 P1 and P2

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– UNIT 21,
P1 IDENTIFY THE LEGAL CRITERIA FOR OFFER AND ACCEPTANCE IN A VALID CONTRACT AND
P2 EXPLAIN THE LAW IN RELATION TO THE FORMATION OF A CONTRACT IN A GIVEN SITUATION

In this report I will be focussing on certain factual evidence, relating to the valid requirements of a contract for Dial-A-Phone. For a contract to be legally binding there must be certain legal terms and aspects that must be present – these involve: * Offer

* Acceptance
* Capacity
* Consideration
These are the 4 main elements of a contract, and a contract will not be valid without these.

The assignment will provide detailed information using case laws and a report around the main elements of a contract. These case laws will include: * Carlill vs Carbolic Smoke Ball Company
* Pharmeceutical Society of Great Britain vs Boots Cash Chemists * Fisher vs Bell
* Partridge vs Crittenden
* Entores Ltd vs Miles Far East Corporation
* Felthouse vs Bindley
* Dickinson vs Dodds
* Byrne &co vs Van Tienhoven &co
These cases set precedence in the House of Lords as they were upheld in court and nowadays they use them in the courts to make decisions regarding cases. The Dial A Phone company are operated by Phones 4u Limited – throughout England and Wales. They retail in mobile phone contracts.

The promisee within law is the party that the promise is being made to, for example in Dial-A-Phone, the promisee is the party that are receiving the promises from Dial-A-Phone / the customers. On the other hand the promisor is the party that are making the offers, e.g. in this situation Dial-A-Phone are the promisors. A contract is an enforceable agreement that is made between two or more parties. For example within Dial-A-Phone, the company will make a contract with its customers, to provide them with a mobile phone and service for a set amount of money, over a set period of time. Within the world of business, a contract is now more than a promise – it is an opportunity and an intention to create a legally binding agreement between all parties that are involved, and they must intend to give something in consideration to add to the value of the set promises, this consideration must be of value.

There are different types of contract, used by different organisations, they range from simple to complex and can be used to simply purchase a newspaper, or to multi-million pound purchases. In Dial-A-Phone, there are multiple levels of contracts being fulfilled, for example here are just a few of the many contracts that may be held at Dial-A-Phone: * There will be contracts with the customer and the business regarding the mobile phone services * There will be more complex contracts between the business and its customers that are businesses themselves, for example – within a hotel, supplying all of the phone services. * There will be contracts between the business and their staff in call centres etc. * Contracts will be held between the Dial-A-Phone company and its suppliers of goods and services, these will be fairly complex as they will contain many rules and regulations about selling and supplying their goods/services.

A standard form contract is a contract made between parties using the businesses standard set of terms. Some companies, like Dial A Phone – may use their own standard form contracts, which often contain terms that will amount to custom made offers and acceptance, these contracts will fit the individual business’s needs.

The benefits of standard form contracts include that the costs for a business are reduced dramatically as they will not have to spend time preparing a contract for each party involved with the company or have to spend time proof reading and checking the contract with senior managers. Also the use of a standard form contract avoids the need for any individual negotiation, for example if Dial A Phone were dealing directly with Apple to discuss the new...
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