Unit 21 P1
Unit 21 Aspects of Contract and Business Law P1
Describe and then relate these elements to the case study.
Laws, contracts and customs are rules that shape our everyday lives. These date back for centuries. There are a number of different elements that make up a valid contract that can be used in business today, these consist of the following.
Offer
Offers are made to sell or buy a product from an individual or company. Unilateral offers are offers that apply to everyone, i.e. an advert in a newspaper. An offer must be precise, specific and certain. In order for there to be a contract then an offer must first be in place.
Rocky Tops offer indoor climbing sessions to the public upon which they choose to accept or not, depending …show more content…
So when Nick saw the poster and went to buy a new set of ropes and crampons he had to consider what would he was getting out of the deal. He has to hand over his cash in order to receive the ropes and crampons and needs to assess whether it is a beneficial outcome to him.
Two Parties
A contract is between two parties. One contract cannot provide details for anymore participants as it wouldn’t be certain enough. In order for it is certain one contract is kept between two parties. One party will offer a deal and the other party has to consider whether to accept it or not.
An example of a contract formed between two parties within the case study is Rocky Tops and Julie. This is when Julie decides to book a block of 6 climbing lessons and signs a document stating that the sessions can be cancelled by either herself or Rocky Tops within 7 days’ notice.
Capacity
In order to accept an offer you must have the capacity to do so. This requires you to be above the age of 18 and in the right state of mind to carry out the deal with full knowledge of what you are getting into (i.e. you can’t be under the influence of alcohol or …show more content…
When an individual accepts the offer the contract is signed.
Rocky Tops accepted an offer from Weathering Heights as they agreed to purchase £50,000 worth of equipment to be dispatched and delivered by 1st February 2011. They agreed to the terms and conditions and both parties are legally bound to the contract.
Communication
Communication between the two parties needs to be consistent as each individual needs to be clear on what they are agreeing to and also needs to be kept in the loop should anything change in the contract. When writing up the contract it should be clearly communicated, especially with price. The buyer must be aware of the final cost because if the price included contained hidden costs then the contact isn’t valid and there are grounds for complaint.
Bill and Ben, the owners of Rocky Tops, had to communicate with Julie in order to tell her that her third lesson has been cancelled. They did so 10 days prior to the third lesson via a letter. The letter stated that if she fails to rebook within one week she will forfeit her money for that session.
Describe and then relate these elements to the case study.
Laws, contracts and customs are rules that shape our everyday lives. These date back for centuries. There are a number of different elements that make up a valid contract that can be used in business today, these consist of the following.
Offer
Offers are made to sell or buy a product from an individual or company. Unilateral offers are offers that apply to everyone, i.e. an advert in a newspaper. An offer must be precise, specific and certain. In order for there to be a contract then an offer must first be in place.
Rocky Tops offer indoor climbing sessions to the public upon which they choose to accept or not, depending …show more content…
So when Nick saw the poster and went to buy a new set of ropes and crampons he had to consider what would he was getting out of the deal. He has to hand over his cash in order to receive the ropes and crampons and needs to assess whether it is a beneficial outcome to him.
Two Parties
A contract is between two parties. One contract cannot provide details for anymore participants as it wouldn’t be certain enough. In order for it is certain one contract is kept between two parties. One party will offer a deal and the other party has to consider whether to accept it or not.
An example of a contract formed between two parties within the case study is Rocky Tops and Julie. This is when Julie decides to book a block of 6 climbing lessons and signs a document stating that the sessions can be cancelled by either herself or Rocky Tops within 7 days’ notice.
Capacity
In order to accept an offer you must have the capacity to do so. This requires you to be above the age of 18 and in the right state of mind to carry out the deal with full knowledge of what you are getting into (i.e. you can’t be under the influence of alcohol or …show more content…
When an individual accepts the offer the contract is signed.
Rocky Tops accepted an offer from Weathering Heights as they agreed to purchase £50,000 worth of equipment to be dispatched and delivered by 1st February 2011. They agreed to the terms and conditions and both parties are legally bound to the contract.
Communication
Communication between the two parties needs to be consistent as each individual needs to be clear on what they are agreeing to and also needs to be kept in the loop should anything change in the contract. When writing up the contract it should be clearly communicated, especially with price. The buyer must be aware of the final cost because if the price included contained hidden costs then the contact isn’t valid and there are grounds for complaint.
Bill and Ben, the owners of Rocky Tops, had to communicate with Julie in order to tell her that her third lesson has been cancelled. They did so 10 days prior to the third lesson via a letter. The letter stated that if she fails to rebook within one week she will forfeit her money for that session.