Law Case Study Wholesome Vegetables Ltd
INTRODUCTION
A contract has been defined as a legally binding agreement or, in the words of Sir Frederick Pollock: ‘A promise or set of promises which the law will enforce’. However, not all promises or agreements give rise to contracts. According to the case study, Andrew, who works as a salesman at Wholesome Vegetables Ltd, offering to sell Ben 100 bags of potatoes at £10 per bag. At first Ben accepted Andrew’s offer but when he heard the news about a slump in the price of potatoes which has fallen to £7 per bag, he refuses to accept delivery of Andrew’s pricey potatoes. Therefore there are some issues discussed based on this situation. The discussion includes the requirements that must be met for a contract to exist between Andrew and Ben, the legal effect of Andrew’s fax and Ben’s letter and the explanation of Ben’s text message.
QUESTION 1
A contract has many definitions, but one of the simplest definitions for a contract is a “promise enforceable by law” (Michael.H, 2010). The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent (agreement) of two or more person, one of them normally making an offer and the other accepting it. If one of the parties (persons) fails to keep his or her promise, the other is entitled to legal recourse against that person.
There are seven requirements necessary for a contract to be valid (Riches.S,2009):
1. Agreement
The first requisite of any contract is an agreement. At least two parties are required; one of them, the offeror, makes an offer which the other, the offeree, accepts. In this case, Andrew is the offeror and the offeree is Ben.
2.1 Offer
An offer is an expression of willingness to contract made with an intention that it shall become binding on the offeror as soon as it is accepted by the offeree. A genuine offer is different from what is known as an “invitation to treat”, i.e. where a party is merely
A contract has been defined as a legally binding agreement or, in the words of Sir Frederick Pollock: ‘A promise or set of promises which the law will enforce’. However, not all promises or agreements give rise to contracts. According to the case study, Andrew, who works as a salesman at Wholesome Vegetables Ltd, offering to sell Ben 100 bags of potatoes at £10 per bag. At first Ben accepted Andrew’s offer but when he heard the news about a slump in the price of potatoes which has fallen to £7 per bag, he refuses to accept delivery of Andrew’s pricey potatoes. Therefore there are some issues discussed based on this situation. The discussion includes the requirements that must be met for a contract to exist between Andrew and Ben, the legal effect of Andrew’s fax and Ben’s letter and the explanation of Ben’s text message.
QUESTION 1
A contract has many definitions, but one of the simplest definitions for a contract is a “promise enforceable by law” (Michael.H, 2010). The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent (agreement) of two or more person, one of them normally making an offer and the other accepting it. If one of the parties (persons) fails to keep his or her promise, the other is entitled to legal recourse against that person.
There are seven requirements necessary for a contract to be valid (Riches.S,2009):
1. Agreement
The first requisite of any contract is an agreement. At least two parties are required; one of them, the offeror, makes an offer which the other, the offeree, accepts. In this case, Andrew is the offeror and the offeree is Ben.
2.1 Offer
An offer is an expression of willingness to contract made with an intention that it shall become binding on the offeror as soon as it is accepted by the offeree. A genuine offer is different from what is known as an “invitation to treat”, i.e. where a party is merely