CONTRACT LAW Essay Example | Topics and Well Written Essays - 1500 words

CONTRACT LAW - Essay Example This is the basic definition and understanding of how a deal is formed. Following are the characteristics of deal: 1. Agreement between parties 2. Agreement for consideration of goods or services 3. Should be in a written format 4. Should have an offer and an acceptance to the same offer 5. Deal should be sufficient in nature 6. There should be damages if the deal does not take place As mentioned above, a deal starts with an offer made by one party, then the same offer has to be accepted in the language it was made by the other party.1 The characteristic of an offer consists of a consideration on both sides to the parties. Without consideration like money, service a deal/contract cannot e formed between the two parties. It is paramount that each and every deal consist of a consideration to do something or to not do something in return of the favor by the other party. Once the parties form the deal, the next step is to get it down in a written format so that the same can be challenged , and argued in a court of law. An oral deal does not stand any status or character in the court of law. Part 2 This part of the paper is divided into three questions. The first question is as follows: Advice Jay on his position: Jay had been given the power to run the business and saw an advert for a sale of Bankrupt stock in the warehouse. He decided to place an order for 500 Singing Santas from the warehouse and promised them that he will be at 7 to pick them up. However, when he arrived the stock has been sold to someone else. Applying the principles of contract law, at the outset, Jay saw an advert which was an invitation to offer and not an offer it totality. Following is the definition of invitation to offer: â€Å"invitation to treat – that is, an invitation for other people to submit offers. Some everyday situations, which we might think, are offers are in fact invitations to treat: Goods displayed in a shop window or on a shelf. When a book is placed in a shop wind ow priced at ?7.99, the bookshop owner has made an invitation to treat.† Understanding from the above definition, the advert in the warehouse was a merely invitation to offer and not an offer. Once Jay placed an order of 500 Singing Santas, he offered his willingness to purchase the bankrupt stock, and not vice versa. This means that the offer was made by Jay and not by the warehouse owners. The next step in this contractual relation is the acceptance of the offer. The warehouse owners were made an offer by Jay, and it was upto them to accept it or withdraw. As obvious from the facts, they withdrew the offer by selling the bankrupt stock to someone else. Therefore, there is no legal defense in this case for Jay. There is no breach of contract as there was no contract formed in the first place. b) After leaving, Jay bought a handful of flashing fairy lights and put it up on sale. When he put it on sale he had written a disclaimer saying that goods will not be refunded until and unless there is a defect with the object of purchase. There were three customers who were not happy with the purchase, and this part of the essay shall deal with each and every customer. Elena is the first distraught customer, who claims that the lights do not flash. This is a genuine defect with the goods and this falls within the ambit of the disclaimer written down by Jay. Therefore, Jay should refund Elena immediately. In the second case, Henry