Business Law - 4 steps process assignment
Question 1
Step 1
The legal issue is whether the element of agreement can be established to form a contract between Jordan and Will.
Step 2
Making a contract requires three elements, which are agreement, intention to be legally bound and consideration (Do and Duperouzel, 2014). However, the element of agreement will be discussed here.
An agreement is a meeting of the minds of both parties in which they comprehend what essential terms for the contract are. It is made of offer and acceptance. Offer is made by offeror to express the willingness to contract on certain terms, whereas acceptance is the assent to these terms of offeror (Do and Duperouzel, 2014).
An offer requires several rules to contract.
Firstly, it must be sufficiently complete and promissory (Do and Duperouzel, 2014). For instant, in Harvey v Facey [1893] AC 552 case, Harvey and Facey discussed about a possible trade of the Bumper Hall Pen using telegram. Harvey asked Facey to sell him a Bumper Hall Pen and would pay for the lowest cash price. Facey then replied the lowest cash price which was £900, also by telegram. Harvey agreed to that price but Facey refused to sell, which led to him being sued by Harvey, thought that they had agreed on a contract with that price as an offer. However, the court held that it was not a legally enforceable promise, as it was merely a statement providing information on what Harvey had asked, not a promise to sell him the pen.
Secondly, an offer must be intended to form a contract if accepted, so an advertisement are not generally considered as an offer (Do and Duperouzel, 2014). In Partridge v Crittenden [1968] 2 All ER 421 case, Partridge put an advertisement in a magazine stated “Bramblefinch cocks and hens, 25/-each”. He then was charged with unlawfully offering wild birds for sale. Nevertheless, the court held that it was not an offer, but merely an “invitation to treat”, where people who are interested are the one to make an offer to buy.
Next, an offer can be
Step 1
The legal issue is whether the element of agreement can be established to form a contract between Jordan and Will.
Step 2
Making a contract requires three elements, which are agreement, intention to be legally bound and consideration (Do and Duperouzel, 2014). However, the element of agreement will be discussed here.
An agreement is a meeting of the minds of both parties in which they comprehend what essential terms for the contract are. It is made of offer and acceptance. Offer is made by offeror to express the willingness to contract on certain terms, whereas acceptance is the assent to these terms of offeror (Do and Duperouzel, 2014).
An offer requires several rules to contract.
Firstly, it must be sufficiently complete and promissory (Do and Duperouzel, 2014). For instant, in Harvey v Facey [1893] AC 552 case, Harvey and Facey discussed about a possible trade of the Bumper Hall Pen using telegram. Harvey asked Facey to sell him a Bumper Hall Pen and would pay for the lowest cash price. Facey then replied the lowest cash price which was £900, also by telegram. Harvey agreed to that price but Facey refused to sell, which led to him being sued by Harvey, thought that they had agreed on a contract with that price as an offer. However, the court held that it was not a legally enforceable promise, as it was merely a statement providing information on what Harvey had asked, not a promise to sell him the pen.
Secondly, an offer must be intended to form a contract if accepted, so an advertisement are not generally considered as an offer (Do and Duperouzel, 2014). In Partridge v Crittenden [1968] 2 All ER 421 case, Partridge put an advertisement in a magazine stated “Bramblefinch cocks and hens, 25/-each”. He then was charged with unlawfully offering wild birds for sale. Nevertheless, the court held that it was not an offer, but merely an “invitation to treat”, where people who are interested are the one to make an offer to buy.
Next, an offer can be