Business Law #4 - Case Study Example

BUSINESS LAW #4 On May BNI Inc. send Carol a letter, via overnight delivery, offering to employ her to audit BNI's financial ments for the current year for $1,000. In the letter, BNI stated that Carol had ten (10) days to accept the offer. On May 5, Carol sent BNI a fax that stated, "The price for the audit seems too low. Would you consider paying $1,200" BNI received the fax. The next day, Dan offered to conduct the audit for $800. On learning of Dan's offer, Carol immediately e-mailed BNI, agreeing to do the work for $1,000.

BNI received this email on May 7. Explain why BNI and Carol do, or do not, have a contract.Issue: This situation involves the issue of offer and acceptance with regard to a contract.Rule: The "mirror image rule" states that if you are to accept an offer, you must accept the offer exactly, without modification. If you change the offer anyway, this is a counter offer that kills the offer (Uniform Commercial Code, Section 2-207).Analysis: An offer and acceptance is one of the elements used to determine whether a contract exist between two parties.

Offer is defined as may be defined as an expression of willingness to contract on certain terms, made with the intention that I shall become binding as soon as it is accepted by the person to whom it is addressed. Acceptance, on the other hand, is a final and unqualified expression of assent to the terms of the offer ("Offer and Acceptance - Acceptance"). As the general contract law principles which are applicable in almost all jurisdictions, the offer by the person making the offer (offeror) must be accepted without qualification or further negotiation by the other party to whom the offer was made (offeree).

Once an offer was made, the offerre can respond in four ways: accept, reject, make a counter offer, or do nothing. An offer is deemed terminated if the offeror revoke the offer, or if the offeree gave counter offer or rejected the offer, there was a lapse of time to which an answer o the offer should have been made, death or disability of either party, or if the performance of the contract becomes illegal after offer is made ("General Contract Law Principles"). Acceptance of the offer may be made through writing a letter or sending it through fax or email.

The aforementioned principles of contract law is applicable no matter what kind of contract you are entering into, even in a contract of employment as in the case a hand.Conclusion: Applying the general principles of contract law as stated, there was no valid contract between BNI and Carol because there was a counter offer made by Carol as to the offered salary by the company to her. The original offer was $1,000 but she asked for $1,200 salary. Under the rules, a counter-offer kills a contract as if no contract has been made.

Therefore, no contract exists between BNI and Carol.References"Contract Law - An Introduction". Expert Law.com. Retrieved on March 9, 2009 at "Employment Contracts" US Law.com (Online). Retrieved on March 9, 2009 at "Offer and Acceptance". Global Oneness. com. Retrieved on March 9, 2009 at