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Introduction This assignment contents or rather deals with the law of contract. The law of contract isessential as it is used in every transactions made by either an individual or by anycompany or business enterprise. The object of the law of contract is to provide certaintyin any commercial or other transactions. This law is the most important part of thecommercial law as every commercial transaction begins from an agreement betweentwo or more persons. A contract is said to be an agreement that is enforceable by law. This means that tomake any agreement effected, it must be enforced by law1. There are certain conditionswhich makes the contract to come into existence. Offer and acceptance: To make an agreement there must be an offer from one partywhich has to be accepted by the other party to the agreement. Absence of any offer andacceptance will not make an agreement.Ability of the parties: The seller and the buyer of the agreement need to be capable ofgetting into an agreement; it cannot be otherwise enforced by the courts of law. Theparties should not be minor, i.e., must be above 18 years of age. Any person cannotenter in an agreement in case of lunacy, idiocy or intoxicated or similar other factors.11
Free consent: The parties to the contract should have their own consent to form anagreement. Any agreement formed by duress, undue influence, misrepresentation,mistake or fraud cannot be enforced by law.Consideration: There must be a lawful consideration to enter into an agreement.Consideration means doing of some act in order to get something from the other party.Consideration is generally done in terms of money.Legal relationship: The parties to an agreement should have an intention to create alegal relationship which shall be binding on both the parties.If these conditions are fulfilled, the agreement becomes enforceable by law which iscalled a contract. Any breach of the contract will lead to an offence2In the case mentioned here, there is an invitation to offer was communicated in generalthrough the social media by Alan. This invitation to offer was accepted by all threepersons, namely Bernard, Damien and Charleen. But mere accepting the invitation tooffer does not lead to form a contract which has been discussed below3.ISSUE:Whether is it an offer or invitation between? Because Alan has made an invitation tooffer by a false representation4. Both Bernard and Damien had made the offer without2342
knowing the actual fact, which was accepted by Alan. In general term, there is acontract made between them. But no contract has been made in terms of law. Thecontract made is void5.RULESIn this case, Alan, who was a student of Kaplan Higher Education, decided to sell histext book which is named as “Introduction to Business Law in Singapore.” Therefore, hemade an offer in general through a social media. On 1November 2015, he posted inFacebook about the book, which he is going to sell together with his written notes in anexercise book which he noted down during his classes. He made an offer for $200.00