Nobody downloaded yet

Binding Contracts - Assignment Example

Comments (0) Cite this document
Summary
Name: Course: Date: Binding contracts Question 1 A contract refers to an agreement that has been entered by two or more parties who has the intentions of making such an agreement legally binding (Atiyah, 1986 p197). Contracts can be entered into either orally through a word of mouth or through writing…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
Binding Contracts Assignment
Read TextPreview

Extract of sample "Binding Contracts"

Download file to see previous pages In our case, Dave and Sam are friends from the same University, with Dave wanting to indulge Sam in a business deal, where they could purchase iPads from a supplier who is seeking to expand his business in Australia. In this case, Sam is worried because he does not have sufficient money and thus opts to say nothing. Dave concludes that both will contribute $500 each to purchase the iPads, which they will sell at a profit and share the profits equally. Considering the requirements of the laws of contract, for an offer to become legally binding, there must be a mutual consent between the two parties (Wilmot, 2009 p35). One party must make an offer and the other party must accept that offer. In this case, Dave is the party making an offer, which Sam is reluctant to accept. A binding agreement is established if the parties involved accept the offer as it is. In case one party gives a different term regarding the offer, then that becomes a counter offer, indicating the rejection of the original offer (Black, 1979 p23). In our case, the original offer required both parties to contribute a Sum of $500 each. However, contrary to the requirement, Sam leaves Dave a message to the effect that he can only contribute $200 and get 20% of the profit share as opposed to the 50% he would have obtained by contributing $500. Therefore, Sam has offered a different term to the agreement, making a counter offer. At this point, the original contract becomes void and unenforceable (Peter, 1979 p45). Therefore, there is no binding agreement in existence between Dave and Sam. Further, under the laws of contract, two parties can be involved in negotiation or pre-emptive talks, where they discuss the terms of the contract just before committing to it. This is referred as an invitation to treat (Horwitz, 1974 p100). In our case, Dave and Sam are discussing about the business deal in a coffee shop, where Dave concludes by himself that they have to enter into the business and make equal contributions, without having Sam confirm. Therefore, the discussion they had in the coffee shop amounts to an invitation to treat, where Dave is inviting Sam to consider the iPad business deal (Ewan, 2005 p400). Thus, this is not a contract but a mere invitation to treat, meaning there is no binding agreement between Dave and Sam. More important to the creation of a binding contract is the fact that there has to be an intention to have the two parties legally bound by the agreement they establish (Barnett, 2008 p482). In this case, the two parties involved did not indicate any intention of being legally bound by the agreement. While Dave was developing the business deal that they shall indulge in, Sam was nonresponsive. As a matter of fact, Sam only agreed to contribute $200 to the deal, to avoid offending Dave since he is a friend. Thus, the agreement in this case was established based on friendship without any legal intention created by the parties involved. In this case, the contract is not legally binding and thus it is voidable (Gardner, 1992 p170). Therefore, there is no binding agreement that obliges Sam to pay Dave any money. Question 2 In this case, Dave approaches Jane to partner with her in securing the deal and have her contribute $500 to purchase the iPads for sale. In fact, Jane is excited about the whole idea and wants them to make it a full time business of importing 100 ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Binding Contracts Assignment Example | Topics and Well Written Essays - 1250 words”, n.d.)
Binding Contracts Assignment Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/law/1447169-law
(Binding Contracts Assignment Example | Topics and Well Written Essays - 1250 Words)
Binding Contracts Assignment Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/law/1447169-law.
“Binding Contracts Assignment Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/law/1447169-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Binding Contracts Assignment

Acceptance in Business Contracts

...?Acceptance in Business Contracts Table of Contents Introduction 3 Acceptance as an Essential Element of a Valid Contract 3 Standard Form Contracts 5Communication of Acceptance 7 Acceptance must be Given a Reasonable Time 8 Conclusion 8 9 References 10 Introduction A contract is a legal agreement signed by two or more parties, each of whom intends to be benefited against several legal obligations. In simple words, a contract can be explained as the exchange of legal obligations and promises, shared between the two or more parties engaged in a contract (Marsh Parlin Law, 2012). In business, contracts are considered to be...
8 Pages(2000 words)Assignment

Procurement & Contracts Coursework

...from certain acts that precede the formal formation of a construction contract. When a contractor submits an estimate for the work proposed, this can be regarded as an offer (Croshaw v Pritchard & Renwick, 1899). If the employer is accepting this offer, the acceptance must reflect the terms of the offer in order to form a legally binding contract (Contracts Act 1950, Section 7(a)). If the employer accepts the offer in a way that modifies or deviates from the contractor’s offer, the acceptance will be treated as a “counter-offer” and an indication that the contractor’s offer was not accepted (Holland, Hannen & Cubitts Ltd. v Atomic Power Construction Ltd., 1962). As there...
23 Pages(5750 words)Assignment

Contracts

...that without an explicit promise, the contract was void. The appellant proved that Woods did not seek an equivalent request for her explicit promise. In addition, she did not make any requests for any proceeds from Wood in a manner that would have provided a sense of her “consideration”, which was vital for the validity of the contract. In light of this, the court established that even though, Wood failed to create a binding contract by not seeking the input of the other party, it was naturally implicit for the party to conduct himself in a reasonable manner by delivering half of the proceeds he was to obtain. The primary rationale behind the ruling was that for a...
2 Pages(500 words)Assignment

Contracts and The UCC

...and Investment Securities etc (Georgia, 2010). The UCC implementation in its modified form has many benefits for the citizens of State of Georgia (Flinn, 2013). This act may give right to the buyer to reject the goods at the time of contract if they do not match the expectation of the buyer. Another advantage which any buyer can enjoy is the term of warranty from the seller side. The seller will be liable to repair the product if it is damaged within the warranty period. In some situations, the buyer may even have the right to revoke or even cancel the order if he is not satisfied with the product. All of these terms and conditions are really beneficial for the clients and the residents of the State of...
1 Pages(250 words)Assignment

Oral Contracts

...Logistics: Oral contracts Oral contracts usually are contracts whose terms have been established by a word of mouth or rather spokencommunication. Oral contracts are also either partially in writing as well as partially dependent, usually on words that are spoken or totally dependent on words that are spoken. Oral contracts are just as valid as written agreements; however the key issue with these types of contracts is proving of their existence or the agreed terms. Oral contracts frequently are provable by activity that is carried out by a single or both parties, mostly depending on the continuation of the given...
2 Pages(500 words)Assignment

Difference between void contracts and voidable contracts

...Differences between Void Contracts and Voidable Contracts I.D. of the Differences between Void Contracts and VoidableContract Void Contract In most simple terms, a void contract can be defined as: “A contract having no legal force or binding effect” (Cross and Miller 2011, p. 752). So a void contract is no contract at all. According to Schaffer, Agusti, and Earle (2008), there are four essential elements of a contract as per the common law requirements. First, mutual assent on the part of the contracting parties is necessary, and the...
2 Pages(500 words)Assignment

Contracts

...Journalism, mass media and communication Introduction Publishing contract is a standard contract and a writer, that too a writer who is making efforts to get his first work published, has little option but to sign on the dotted lines of the contract. In this world impacted by internet revolution, print and electronic media have taken tremendous stride, and their growth is like that of octopus which grows in all the directions. Normally an author is a novice about the intricacies of the art of publication. The technical and legal language of the contract is liable to be interpreted in various terms, often jeopardizing the interests of the author. Normally an author is...
2 Pages(500 words)Assignment

From Typical Contracts to E-Contracts

...From Typical Contracts to E-Contracts The use of electronic contracts at the real property closings is of benefit to its consumers globally. This is because the new technology has far much benefit than the old way whereby files had to be used in carrying the documents to be used. Its benefits as stated from the reading are as follows. First, the method is convenient as well as beneficial to both consumers. This is because none of the buyers or sellers will have to travel long distances to get to land offices. Secondly, there is the automatic delivery of the signed documents directly to the closing (Mitkus & Eva 4-8). Therefore it is advantageous as it saves both consumers the time they...
2 Pages(500 words)Assignment

Contracts

...1) There is a valid contract between Adam and Bill since they agreed on two aspects; to open a joint venture and that Bill would sell Adam the restaurant in three years depending on its profitability. As a point of departure, it should be noted that a contract is a legally enforceable agreement between two or more people (Gibson, 1988). A contract can be verbal or in written form. Though Bill refused to sign the contract, the verbal agreement reached is binding. When a contract is created there is an offer and acceptance of that offer. Bill offers to sell Adam the restaurant and Adam accepted and this shows that a valid...
1 Pages(250 words)Assignment

The purpose of Criminal Law

...in the market. These laws prevent business enterprises from becoming too powerful to the extent of controlling market prices and restricting entry by other players. However, there are industries and activities that are exempt from the U.S antitrust laws. Labor unions, for example, are exempt from antitrust laws, which make all the activities by labor unions exempt from these laws. Sports as well as healthcare are also exempt from these laws. These exemptions apply because these industries and activities would be negatively affected if they were subjected to antitrust laws (Broder, 2012). Suretyship agreements are legally binding contracts where the signee accepts responsibility for another...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Binding Contracts Assignment for FREE!

Contact Us