Law Applied Bussiness
A point that is created when two or more parties reach an agreement that is legally enforceable and is executed in accordance with the legal requirements. Contracts are an important part of every business and therefore it is very important that the parties to contract understand the terms of the contract and also their rights and responsibilities under the contract. In this way the contract should reflect the agreement between the parties as the rights and obligations of the parties are decided by the terms of the contract. The essential parts of the contract are offer, acceptance, consideration and the intention to create legal relations. The acceptance of an offer takes place when the offer terms are accepted without any conditions. The new terms and conditions that are introduced by the parties during negotiation are known as counter offers to the original offer and it cancels the terms made by the original offer.
The offer is considered as accepted only when the acceptance is brought to the notice of the party making the offer. This rule applies in case of instantaneous communication or where the parties are contracting face-to-face. In case the acceptance is sent by post, the offer is considered as accepted when the party posts the letter containing the acceptance. The law of contract requires that the parties to contract should receive valuable consideration in lieu outperforming their part of the contract. In this way consideration is the requirement of reciprocal obligations that are imposed on parties the contract (Turpin, 1973).
A contract can be made in writing or orally or it can be created through the act of the parties. However for the purpose of clarity, most of the commercial contracts are in writing so that a record of the event can be maintained. On the other hand, there is greater potential for disputes regarding the terms of the contract between the parties in case of oral contracts as it can be problems in providing evidence
The offer is considered as accepted only when the acceptance is brought to the notice of the party making the offer. This rule applies in case of instantaneous communication or where the parties are contracting face-to-face. In case the acceptance is sent by post, the offer is considered as accepted when the party posts the letter containing the acceptance. The law of contract requires that the parties to contract should receive valuable consideration in lieu outperforming their part of the contract. In this way consideration is the requirement of reciprocal obligations that are imposed on parties the contract (Turpin, 1973).
A contract can be made in writing or orally or it can be created through the act of the parties. However for the purpose of clarity, most of the commercial contracts are in writing so that a record of the event can be maintained. On the other hand, there is greater potential for disputes regarding the terms of the contract between the parties in case of oral contracts as it can be problems in providing evidence
References: Beale, Hugh (1978). "Unfair Contract Terms Act 1977". Journal of Law and Society 5 (1): 114–121 Burnett, Robin Law of International Business Transactions ( Federation Press, 3rd ed, 2004) ch 1 Carr, Christopher (1973). "An Optimistic Look at the Contract Provisions of Unfair Contract Terms Act 1977". Modern Law Review 36 (5): 703–706. Felemegas, John Computation of Time for Acceptance of Offer: Comparison Between Provisions of the CISG (Article 20) and the Counterpart Provisions of the Principles of European Contract Law (Pace Institute of International Commercial Law, 2002) Fritz Enderlein and Dietrich Maskow, International Sales Law: United Nations Convention on Contracts for the International Sale of Goods; Convention on the Limitation Period in the International Sale of Goods, at p. 44. Turpin, Colin (1973). "The Unfair Contract Terms Act: Wider Still and Wider?". Cambridge Law Journal 32 (2): 418–420