Assignment 2 Four Step Process Essay

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Given name

Hui Leen



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Unit name

Business Law 100

Unit code


Assignment title

Assignment Two

Date submitted

5 MAY 2014

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Question 1:
Using the four step process, discuss the element of agreement required for the formation of a legally binding contract
…show more content…
The Dutch company then sent an acceptance to Entores by telex. Entores sued the owner of the
Dutch company for damaged due to the contract was not fulfilled. The issue before the court was whether the contract is formed in London rather than Amsterdam. The court held that the contract is formed in London as the acceptance is effective once it communicated to the offeror.
There is an exception for the acceptance is the postal acceptance rule. Whenever the acceptance is posted, the offer will be accepted at the time. In the case of Adams v
Lindsell (1818) 106 ER 250, Lindsell wrote an offer to Adams for selling him some wool and required him to reply by letter. However the letter was delayed in the post. On the day receiving the letter, Adams sent a post of acceptance to Lindsell. After Adams

posted the letter, but before Lindsell received it, Lindsell sold the wool to a third party.
Adams sued Lindsell for breach of contract. The court need to judge whether an agreement between Adams and Lindsell reached before Lindsell sold the wool to the third party. The court ruling that there was an agreement between Adams and Lindsell.
According to the effect of postal acceptance rule, an agreement was reached at the moment Adams posted the letter of acceptance to Lindsell.
Step 3:
As an offer of the agreement must outline the aspects of the offer and also perform that the parties are interested in

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