Question 1
Six essential elements of a contract:
- Intention to create legal relations
- Agreement – Offer and Acceptance
- Consideration or Form
- Legal Capacity
- Genuine Consent
- Legality of Object
Question 2
The rules for acceptance differs between contracts by post and instantaneous communication.
Instantaneous communication refers to email or SMS (short messaging system). If an acceptance is sent through email or SMS, it is deemed accepted only if the person making the offer opens the email or reads the SMS.
If the acceptance is sent through post, it is deemed accepted from the time the letter has been posted and not the time it is received. This is acceptable only if both parties agree to have a postal acceptance.
Question 3
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A condition subsequent exists when a contract gets terminated upon the happening of an event. The purchase of the car involves a signed contract with the stated clause / ‘condition’, ‘if you are not completely satisfied with the car, return it in good condition within 7 days and we will give you your money back’. ‘Subsequently’, after purchase of the car, if the customer does not like the car, he can return it in good condition within 7 days for his money back in full, and the contract is terminated.
Question 5 This is a case scenario of a domestic agreement made verbally, or in other words, made expressly. The first essential element to create a contract is ‘Intention to create legal relations’. In a contract, there needs to be intention to create legal relationships, and it should not include simple domestic or social agreement. In this case, there was a domestic agreement made by Peter to make a dress allowance of $1,000/year to Mary. Thus, it cannot be a term of a contract. As it is a domestic agreement, it cannot be formally a term of contract. Consequently, there is no breach of contract as such a term (non-existent in legal contracts) is not legally bound. Therefore, Peter is not legally bound to pay the $4,000 requested by Mary. In conclusion, Mary is not entitled to the
In this case study a man (Sam Stevens) is living in an apartment where he invented a product. He has verbally promised to deliver this product to a store. He then receives an eviction notice from his landlord, for the product disrupting other tenants and for conducting a business out of the apartment. Then receives a notice from the store; asking for the product that he had promised to be delivered immediately.
Common law dictates that the acceptance must be a mirror image of the offer, regardless of what the difference may be. The Pride v Lewis case is an example of the mirror image rule in action. Pride owned a house which they listed for sale but found a renter in the meantime. Lewis made an offer on the house with a closing date of May 15th, and the Prides accepted but changed the closing date to June 1st and proceeded to evict their tenant and take the house off the market. When the Lewises never showed up to closing, the Prides relisted the house but were never able to find another tenant and ended up selling the house for $15,000 less than the Lewis’s had offered. The Prides sued the Lewises for breach of contract but lost due to the mirror image rule. The different closing date in the acceptance effectively rejected the Lewises offer and no contract was formed. The UCC is not as stringent on the acceptance, it utilizes a “battle of forms” as dictated in section 2-207 which checks for a substantive difference between the offer and the acceptance, such as price, goods ordered, delivery date, and other similar matters. It could also allow a term from the acceptance to be considered a valid part of the contract unless the offer expressly limited acceptance, the new terms would substantively alter the offer with differences such as price, or the offeror objects to the new terms within a reasonable time
The purpose of this essay is to determine if there was an enforceable contract between Sarah and Barry, and whether Sarah breached the said contract. In formulating a contract one must consider four main elements: offer, acceptance, intention and consideration. These four elements will be covered in detail to be able to advise Sarah on the strength of her legal position.
Maria had spoken with Eva over the phone concerning the correct total amount of $60,000 for rendering decorating services provided by Eva. Maria had sent a letter of the telephone conversation stating that Eva agreed to take $60,000 in full satisfaction obligation under the contract. Although Eva, changed her mind when depositing the check in the bank, she legally entered a mutual agreement over the telephone where it resulted in a unliquidated debt, payment is lower than actual.
This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller.
Third Element- Consideration is an essential element for the formation of contract. According to Section.26, Promise as an agr...
When running a business the owners need to consider the number of laws put in place to ensure their fairness. These laws commands and limits their manner of conducting business. A certain soft-drink company did not consider these laws when creating and shooting a commercial and their integrity was challenged in court. For this document, I will discuss the key legal factors of the scenario. I will explain the four elements of a valid contract and how they relate to the scenario. I will define the objective theory of contracts and how it relates to the scenario. I will explain my position about the judge’s ruling. I will explain whether or not an advertisement s actually considered an offer or not. I will explain how this case
A condition is an important term to the contract, and breach of a condition will give the innocent party the right to immediately seize the contract and to claim damages.
This is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the offeror as soon as the person to whom it is addressed accepts it.
The agreement could only be execute if there was consideration. The only present of consideration was the payment of $500 – which was the part of a larger debt already due. The payment of installments could not be consideration unless the payment of $500 was consideration. Part payment of a debt on or after the period of the debt is due is not good consideration for the creditors promise not to demand the balance.
Likewise, Section 5 of Contracts Act 1950 states that "a proposal might be renounced whenever before the correspondence of its acceptance is finished against the proposer, however not a short time later." Hence, it isn't right for Murni to repudiate Fifi of the offer as she has effectively posted the letter of acceptance on 25th December 2012. Fifi may raise this issue to court, and she will be qualified for purchase the auto.
Generally, the acceptance must be communicated to the proposer. If other method of communication is used to communicate acceptance, the postal rule will apply as exception to the general rule.
to use for customers. Members can instantaneously send money to anyone. Recipients are informed by email that they have received a
One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015)
An acceptance is the absolute agreement to a contract and its terms along with its offer. The contract must reflect the original offer made from start.