Essay About Lawa Contract And Business Activity

Business Contract Law
Business Law   ..AssignmentStudent: Goda Geceviciute        Introduction to Contract LawA contract is a legal document of agreement between two or more parties. . Contracts have been described as the most important document in business activity , all transactions made by costumers or producers are agreed or signed of a contract to make the transaction legal.For a contract to be valid, there are certain requirements, such as;-The parties who are signing the contract must be intended for legal purposes.-The parties must have capacity to contract.-The terms of the contract must be legal.(ref: Business Law Notes )1.Discuss the distinction between an offer and an invitation to treat with reference to appropriate case law.Offer:To recognise an offer, we must first distinguish what are not considered an offer:-A statement of Intention.-An option.-The answer to a questionCase: Carlill V. Carbolic Smoke Ball Co. (1893)The defendant undertook, in various advertisements, to pay 100 pounds reward to anyone who caught influenza after having sniffed the smoke ball for two weeks. The plaintiff used the smoke ball as assigned and followed the instructions provided. The plaintiff caught influenza after the two weeks, and while still using the smoke ball. She then claimed her 100 pound reward as stated in the offer. The offer which she accepted, and performed by the conditions was an offer to the public eye. While an advertisement is considered not normally an offer but an invitation to treat, a sum of money that was lodged in the bank was seen as a sign of the offers good faith, and providing considerations to support the offer.Case: Harvey V. Farcey (1893)The first question asked by the plaintiff was: ‘Will you sell us Bumper Hall Pen? Telegraph lowest cash price’. The defendant telegraphed ‘Lowest price 900 pounds’. The plaintiff confused this with an offer and answered bacl ‘ We agree to buy for 900 pounds asked by you’. The defendant made no reply. This is an example of when no contract has been made, it was not an offer but just an answer to a question. It was only a supply of information.An offer is when the offer or expresses its willingness to undertake particular terms, made with the intention to be contractually bound if the other person accepts. This other person is called an offeree. An offer is a statement of terms on which the offer or promises to be bound by a contract with certain responsabilities in return. The terms of an offer must be clear ,certain and complete. It can not be vague or explained briefly. If the terms are not clear, certain and incomplete, the court may hold taht there was a failure to make a complete agreement. There are many forms of an offer. An offer can consists of a letter, newspaper advertisement, fax, email  and conduct. The offer must be written or spoken words. The offer must be intended as such before a contract can arise. If an offer is not made with a view to a legal relationship then its not an offer. or another way if an offer is not court enforceable its not an offer. An example of the difference is if you offered to pay your neighbour 100 euro to fix your fence or he done it for free. When the two parties reach an agreement, from there on, the offer is a valid offer. The offer can be accepted by anybody in the public eye. It can also be for a particular individual as well. The most important thing is that the offer must be communicated to the particular party or the public.(Ref: Classroom, Business Law notes 2014/2015)(Ref: Essentials of Business Law, Fifth Edition, Aine Keenan)(Ref: