Whether Peter is contractually bound to oblige his actions with Anita, Benny, Alice and Mark depends on whether a legal contract had been formed between the parties.
a) Whether an offer was made by or to Peter?
b) Had the offer been accepted by both the parties?
A Contract is an agreement made between two or more people that creates legal rights and obligations that are enforceable by the courts (Miles et al, 2013, p.281). Elements such as Intention, Offer, Acceptance and Consideration are essential to the validity of a contract. Peter is the owner of a ‘Sofa Store’ and looks to sell his product to various clients. His relationship with the clients can be termed as commercial relationships as there is an intent to create an agreement (Edwards …show more content…
An agreement can only be termed a contract when the involved parties intended it to be legally binding when they made it (Miles et al, 2013, p.282). Assuming that both parties intended to create a contract, it needs to be determined whether an offer was made. An offer can be described as a proposal or submission that creates an agreement when it is accepted (Miles et al, 2013, p.318). However, there are various transactions that cannot be termed as offers such as Invitation to treat (The pharmaceutical society of Great Britain vs Boots Cash Chemist (Southern) ltd [1953] 1 QB 401), which is an invitation to others to make offers, and request for information is not an offer (Harvey vs Facey[1893] AC 552). An offer needs to be communicated for it to be accepted and acceptance must be in response to an offer (Carlill v Carbolic Smoke Ball [1893] 1 QB 256).
Finally, if the first three criteria of a contract are met then consideration need to be looked at. Consideration is the price for which the promise of the other (party) is bought at ((Miles et al, 2013, p.339). The most common consideration is money but it can also take form of an act for an act, an act for a promise, a promise for a promise, a promise for an act. A consideration is supposed to be legal and normally supports a simple contract. Consideration can only be present or future and not past (Roscorla v Thomas (1842) 3 QB …show more content…
However, the plaintiff after requesting the information and negotiating the price (asking for discounts) mentioned that he would think about it, which could be termed as an intention to create a contract. It should also be noted that if a offer had been made the defendant had the right to reject or present a counter offer, and if the defendant had made an offer then he had the right to revoke the offer since it had not been accepted by the time, he accepted another
a) Whether an offer was made by or to Peter?
b) Had the offer been accepted by both the parties?
A Contract is an agreement made between two or more people that creates legal rights and obligations that are enforceable by the courts (Miles et al, 2013, p.281). Elements such as Intention, Offer, Acceptance and Consideration are essential to the validity of a contract. Peter is the owner of a ‘Sofa Store’ and looks to sell his product to various clients. His relationship with the clients can be termed as commercial relationships as there is an intent to create an agreement (Edwards …show more content…
An agreement can only be termed a contract when the involved parties intended it to be legally binding when they made it (Miles et al, 2013, p.282). Assuming that both parties intended to create a contract, it needs to be determined whether an offer was made. An offer can be described as a proposal or submission that creates an agreement when it is accepted (Miles et al, 2013, p.318). However, there are various transactions that cannot be termed as offers such as Invitation to treat (The pharmaceutical society of Great Britain vs Boots Cash Chemist (Southern) ltd [1953] 1 QB 401), which is an invitation to others to make offers, and request for information is not an offer (Harvey vs Facey[1893] AC 552). An offer needs to be communicated for it to be accepted and acceptance must be in response to an offer (Carlill v Carbolic Smoke Ball [1893] 1 QB 256).
Finally, if the first three criteria of a contract are met then consideration need to be looked at. Consideration is the price for which the promise of the other (party) is bought at ((Miles et al, 2013, p.339). The most common consideration is money but it can also take form of an act for an act, an act for a promise, a promise for a promise, a promise for an act. A consideration is supposed to be legal and normally supports a simple contract. Consideration can only be present or future and not past (Roscorla v Thomas (1842) 3 QB …show more content…
However, the plaintiff after requesting the information and negotiating the price (asking for discounts) mentioned that he would think about it, which could be termed as an intention to create a contract. It should also be noted that if a offer had been made the defendant had the right to reject or present a counter offer, and if the defendant had made an offer then he had the right to revoke the offer since it had not been accepted by the time, he accepted another