StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Formation of a Contract - Case Study Example

Cite this document
Summary
Barbara who was in need of buying herself a second hand car while still on a low income paying job was lucky to be lend 3000 by her stepfather Roy. However, the agreement was that she was to repay the money with 30 equal instalments starting last November plus interest.
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
Formation of a Contract
Read Text Preview

Extract of sample "Formation of a Contract"

Download file to see previous pages

She asked Janet if she was willing to sell her car for 3000 which she agreed. Janet told Barbara that she would sell the car to her for 3000 if she paid in cash and asked her to come over the following day to see it which she did. The contract between Barbara and Janet was concluded immediately she expressed acceptance of an offer. The issue where Barbara is changing her mind that she was to revoke her acceptance is impossible since the contract between her and Janet is binding and enforceable before a court of law.

It is immaterial to state that he was revoking the acceptance because she discovered that the car had some problem as stated by his stepfather Roy. 1 A contract which is an agreement between two or more parties which is intended to create legally binding obligations was created between Barbara and Janet on the sale of the second hand car. The word binding is used for there are some contracts which are valid but are not enforceable. For a contract to be binding there must be an intention to create legal relationship between the parties to the contract.

For this case, there was an intention of creating a legal relationship between Janet and Barbara on the sale of the second hand car. . 2Acceptance once made cannot be revoked unlike an offer which can be revoked by an express notice before it is accepted. However, acceptance cannot be revoked in any circumstance by either the offeree or the offeror. The moment a person expresses his acceptance of an offer, that very moment the contract is concluded and it does not matter whether the acceptance is by word of mouth, in writing or sent by post.

For this case, it was illegal for Barbara to revoke his contract to purchase the second hand car for 3000 from Janet as agreed on the phone with her. Due to this reason, Janet can sue Barbara for damages. 3The normal remedy for breach of contract is damages where the aim of the law is to place the third party as far as possible in the possible in the position he would have been if the contract had been performed. Janet is entitled to receive nominal damages which are awarded to the plaintiff after proving a breach of contract without suffering any actual loss.

On the issue where Barbara had been lend 3000 by his stepfather Roy; there was a legally binding contract between them. There was an agreement that Barbara was to pay the debt by 30 equal instalments. This agreement fulfils all the requirements of a valid contract hence it became binding immediately the money was lend to Barbara by her stepfather Roy. However, Barbara's car was involved in an accident and she requested his stepfather to forgo his monthly instalments so that she could afford the repair of her car after the accident which amounted to 1200.

For this case, there was a fresh contract between Barbara and his stepfather Roy to forgo the repayment of the loan for sometime until her financial status returned to normal. In the new contract between

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Formation of a Contract Case Study Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/law/1529636-formation-of-a-contract
(Formation of a Contract Case Study Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/law/1529636-formation-of-a-contract.
“Formation of a Contract Case Study Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/law/1529636-formation-of-a-contract.
  • Cited: 0 times

CHECK THESE SAMPLES OF Formation of a Contract

Applied Law: Jud Wheelers Scenario and Gerards Scenario

2 Jud Wheeler's ScenarioThe Formation of a Contract takes place when what one party offers is accepted by the other party to the contract.... With sufficient consideration, the contract and the terms of agreement in the contract become… a contract becomes enforceable when it involves some exchange of value between the parties involved in the contract.... a contract becomes enforceable when it involves some exchange of value between the parties involved in the contract....
1 Pages (250 words) Essay

Contract Law

A contravention to the terms of a contract The court substantiates the value of a breach thereby punishing the offending party depending on the specific breach.... a contract, also known as an agreement in some legal jurisdictions is legally binding agreement between two parties who agree to specific terms outlined in the agreement.... Each of the two parties offers either a service or a product of value that validates the existence of the… Entry into a contract is voluntary....
4 Pages (1000 words) Research Paper

Formation of a Contract Case: Andalasia and Arundel PLC

There should be a proof of achievement of all elements of a contract in writing, orally or by… Under the modern commercial contracts, negotiations have been regarded as inevitable due to a complexity of contract relationships.... a contract refers to a legal relationship that subsists between two or more parties with a lawful object voluntarily entered by the parties having legal obligations between them.... a contract must have an offer by from one party to the contract that must be accepted by the other party to signify mutual consent to form a legal agreement....
9 Pages (2250 words) Essay

The Formation of a Contract

In the paper “The Formation of a Contract” the author examines the key elements for the Formation of a Contract, which include the offer, followed by acceptance, and then consideration.... In order for the parties to be able to enter into a contract, both parties must have the capacity to enter into the contract and the contract has to be able to be performed.... When all 3 elements are present the court will generally hold that a valid contract has been created....
8 Pages (2000 words) Case Study

Way in Which the Courts Approach Questions as to the Formation of Contracts

This paper outlines a rigid format applied to the Formation of a Contract, expectations, future date of the contract.... The basis for the rigidity of the formation of a contract was to give certainty to the contracting parties.... In this case, the defendant had entered into a contract with the plaintiff for the supply of leather booties for babies.... This essay describes the way in which the courts approach questions as to the formation of contracts....
6 Pages (1500 words) Essay

Importance of Contract Formation

The Formation of a Contract becomes very significant.... That is how, the Formation of a Contract, with its essential elements, becomes very significant.... This research paper, 'Importance of Contract Formation', presents a clear view of what are the essential forming elements of a contract and what would be the consequences of not considering, or missing any of these elements.... It could be oral, in writing, through electronic means, or a combination of one or more of these means of a contract....
5 Pages (1250 words) Term Paper

Creating of a Legally Binding Contract

Let us take a deeper look at the Formation of a Contract.... A legally binding contract gives legal rights to a party to a contract in case of breach of a contract by the other party.... nbsp; The formation of a legally binding contract requires an offer to be made properly which should be accepted properly.... When the parties to an agreement have an intention to create legal relations, the agreement becomes a contract.... The most important thing is the competence of the parties to enter into a contract....
10 Pages (2500 words) Essay

Aspect of Contract and Negligence

nbsp; a contract for service refers to any agreement verbal, written, implied, or expressed whereby one person is engaged as an independent contractor to execute an assigned duty or the project for the company (Riches & Allen, 2009).... The claim arose in a contract involving the shipping of wheat for the defendant from Texas to Iran.... "Aspect of contract and Negligence" paper focuses on legal and statutory arguments upon which Lady Gaga can develop a case against the producer and sue for compensation the breach of contract against the conditions established under the contract of service....
9 Pages (2250 words) Case Study
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.
Contact Us