is usually said that not only the offer be accepted‚ but the acceptance must be communicated to the offeror. Where the parties are negotiating face to face‚ this present no problem since the acts or words which manifest acceptance will also communicate it. Where the parties are negotiating at a distance by post‚ telephone‚ telegram‚ telex‚ fax or messenger the principle obviously has important applications. (Dudgale‚ 1992) However in the case of postal acceptance‚ perhaps numerically the most common
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between 2 parties. A contractual agreement is said to exist when a valid offer is followed by a valid acceptance. • Sometimes people will negotiate to try to gain something different from what is first offered. This may make it difficult to know exactly when a contract is formed and when legal obligations begin. Components necessary for contract formation • 1. An OFFER- a promise to be bound on specific terms • • 2. An ACCEPTANCE- an unqualified agreement to those terms • • 3. CONSIDERATION- which
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Once the contract is formed‚ those parties need to abide their promises. The essential elements of a contract include offer‚ acceptance‚ consideration and intention to create legal relations. In this case‚ it mainly covers offer‚ acceptance‚ and consideration‚ and others are presumed to be presented. First of all‚ we first identify whether the advertisement posted by Alan is an offer or is just an invitation to treat. In the advertisement‚ no enough details about the antique vase were stated‚ e.g
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Wilberforce in the Eurymedon. Before we look at whether the contract is formed‚ a valid agreement must be formed. A valid agreement is a promise of set of promises that is binding by law. An agreement consists of an offer that is followed by an acceptance resulting in (consensus as idem). An offer an expression of willingness to be bound seen in the case of Storer v Manchester city council where there mortgage details were included should always be contrasted from an invitation to treat‚ an expression of
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discussed. To form a legally binding contract‚ the elements of offer and acceptance; present of consideration; intention to create legal relation; capacity; legality of object; compliance with formalities; and genuine consent must be present all together. In the case of Charles v. Alex‚ to determine whether or not Alex was entitled to sell the apartment to another buyer depends very much on whether or not the element of offer and acceptance were present and hence formed a legally binding contract between
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Hyde v Wrench [1840] Facts Wrench offered to sell his farm in Luddenham to Hyde for $1200‚ an offer which Hyde declined.On 6 June 1840 Wrench wrote to Hyde’s agent offering to sell the farm for $1000‚stating that it was the final offer and that he would not alter from it. Hyde offered &950 ‚and after examining the offer Wrench refused to accept‚ and informed Hyde of this on 27 June.On the 29th Hyde agreed to buy the farm for $1000 without any additional agreement from Wrench ‚and after Wrench refused
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BTEC National Business Unit 21: Aspect of contract and business law Assignment 1: The requirements for a valid contract P1: Identify the legal criteria for offer and acceptance in a valid contract. In order for a contract to be legally binding‚ both parties must make an offer and an acceptance of that offer. An offer‚ by law it is generally presumed that in a commercial transaction‚ the contracting parties must have the intention to create a legally binding contract. This means that if they
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E’s Suggestion and Outline Document The issue is whether E has made an offer to Palma. Invitations to treat are ‘offers to negotiate – offers to receive offers’.1 By contrast‚ an offer is made where it can be objectively determined that there was an intention by the offeror to be bound on acceptance.2 On the facts‚ it can be seen that E’s mere ‘suggestion’ of the differential pricing schemes was an expression of willingness to commence negotiations because the end of the trial was imminent. Given
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concerning the performance of the contract. Under these circumstances Bill has committed a breach of an expressed warranty because the “basis for the bargain” was that the car was free of defect. She can also return the car to Bill and revoke the acceptance of the car since it does not conform to the contract and the defects substantially reduce the value of the car. 2. What standard must she prove? Alice has to prove that the car did not conform to the contract and that devaluation of
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Carlill v. The Carbolic Smoke Ball Company. The case of Carlill v. The Carbolic Smoke Ball Company‚ centred around an advertisement which was placed in the Pall Mall Gazette on November 13‚ 1891. The advertisement was entered by The Carbolic Smoke Ball Company and was promoting a “medical preparation”1 which the company had developed‚ called the Carbolic Smoke Ball. The advertisement clamed that “During the last epidemic of influenza many thousand carbolic smoke balls were sold as preventatives
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