ESSAY 2.docx - Introduction This assignment contents or rather deals with the law of contract The law of contract is essential as it is used in every

ESSAY 2.docx - Introduction This assignment contents or...

This preview shows page 1 - 4 out of 12 pages.

Introduction This assignment contents or rather deals with the law of contract. The law of contract is essential as it is used in every transactions made by either an individual or by any company or business enterprise. The object of the law of contract is to provide certainty in any commercial or other transactions. This law is the most important part of the commercial law as every commercial transaction begins from an agreement between two or more persons. A contract is said to be an agreement that is enforceable by law. This means that to make any agreement effected, it must be enforced by law 1 . There are certain conditions which makes the contract to come into existence. Offer and acceptance: To make an agreement there must be an offer from one party which has to be accepted by the other party to the agreement. Absence of any offer and acceptance will not make an agreement. Ability of the parties: The seller and the buyer of the agreement need to be capable of getting into an agreement; it cannot be otherwise enforced by the courts of law. The parties should not be minor, i.e., must be above 18 years of age. Any person cannot enter in an agreement in case of lunacy, idiocy or intoxicated or similar other factors. 1 1
Image of page 1
Free consent: The parties to the contract should have their own consent to form an agreement. 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 a legal relationship which shall be binding on both the parties. If these conditions are fulfilled, the agreement becomes enforceable by law which is called a contract. Any breach of the contract will lead to an offence 2 In the case mentioned here, there is an invitation to offer was communicated in general through the social media by Alan. This invitation to offer was accepted by all three persons, namely Bernard, Damien and Charleen. But mere accepting the invitation to offer does not lead to form a contract which has been discussed below 3 . ISSUE: Whether is it an offer or invitation between? Because Alan has made an invitation to offer by a false representation 4 . Both Bernard and Damien had made the offer without 2 3 4 2
Image of page 2
knowing the actual fact, which was accepted by Alan. In general term, there is a contract made between them. But no contract has been made in terms of law. The contract made is void 5 . RULES In this case, Alan, who was a student of Kaplan Higher Education, decided to sell his text book which is named as “Introduction to Business Law in Singapore.” Therefore, he made an offer in general through a social media. On 1 November 2015, he posted in Facebook about the book, which he is going to sell together with his written notes in an exercise book which he noted down during his classes. He made an offer for $200.00
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 12 pages?

  • Fall '16
  • DEANNAMCCAY
  • Law

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture