Commercial law 1 (AutoRecovered) latest.docx - Introduction A contract is a legally binding agreement between two or more parties For a contract to be

Commercial law 1 (AutoRecovered) latest.docx - Introduction...

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IntroductionA contract is a legally binding agreement between two or more parties. For a contract to be valid and formed, four elements should be present. Legal capacity, agreement, consideration and intention to create legal relations. In a contract, parties should have an agreement between two or more. When a offer is accepted by a party, a valid contract is created. Consideration is also important it means giving the person something back in return. The following paragraphs will explain the legal position and remedies of Bernard, Damien and Charleen.Alan had advertised to sell his textbook “Introduction to Business Law in Singapore” which was used in “Commercial Law” together with all his notes on Facebook for $200.00. He had also stated thathe got High Distinction for that unit when he only got an “credit” grade. And was told to pay him by 5 November 2015 if anyone wasinterested in purchasing it. As a student of commercial law, so he knows what contract law is and how it works so he has the legal capacity to enter into a contract. He had also made an agreement by making an offer of $200.00 for the study materials to be sold. Bernard’s legal position and remedy
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Bernard had intended to purchase the book as well as the notes stated on Alans Facebook. He made a counter offer of $150, but this initial offer made by the offeree had became void. So no acceptance is made. In the end after much consideration, Bernard had accepted to purchase the book and notes for the counter offer price of $200. Bernard then posted the amount in cash to Alan, intention to create a contract can be seen but there was not communication. There was no contract made as the initial offer was terminated by the counter-offer. In the case of Hyde v. Wrench. It can be seen that Hyde had offered 1000 pounds to sell his farm. A counter offer of 900 pounds made by Hyde was rejected by Wrench. Hyde then accepted the initial offer, but it was refused by Wrench, so Hyde filed a claim, claiming Wrench had breached the contract. The courts justified that there was no contract when the counteroffer was made. Thus, the original offer was terminated. Therefore, legal actions cannot be taken on Alan as no contract was made between them.
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