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Aspects of Contract and Negligence for Business Essay Example

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Aspects of Contract and Negligence for Business

Aspects of Contract and Negligence for Business. There must be consensus ad idem i. both parties must agree to the same thing in the same sense. This means that the offeree should agree to all the terms of the offer. A qualified acceptance is not a valid acceptance. It is regarded as a counter-offer and it terminates the original offer as soon as it is made. If the original offeror agrees to the terms of the counter-offer, an agreement is created. Acceptance should be communicated to the offeror. If the offer includes the term that acceptance should be made through a specific mode, it should be made in that mode only. The offeror is at liberty to terminate his offer at any time before it is communicated to the offeree.Consideration is also very important for the formation of an agreement.

A promise is made by the parties to do something in return for something. This ‘return of something’ is known as consideration. The doctrine of consideration is one of the most important tests of whether a promise is worthy of being enforced by law. Both parties to a contract must gain some benefit from the contract and must suffer a detriment. The consideration does not need to be adequate. The law does not compensate for a bad bargain. However, the absence of consideration makes a contract void.There must also be an intention to create legal obligations. An agreement becomes a contract only when it becomes enforceable by law. Social agreements and agreements made in jest are not made with an intention to create legal relations. Domestic arrangements between husbands and their wives are not considered as contracts because of the lack of intent to create legal relations. However, when a couple separates and an agreement is made according to which the husband agrees to pay his wife monthly, the agreement becomes enforceable by law because legal relations are created. Other essentials of the contract include the capacity of parties (none of them should be a minor or of unsound mind) and legality of purpose (the subject matter of the contract should be legal).A simple contract consists of an offer, acceptance, consideration and legal relations. It may not even be in writing unless it involves a transfer of land. Aspects of Contract and Negligence for Business.

References

Bettini v Gye [1876] QBD 183

Hong Kong Fir Shipping v Kawasaki Kisen Kaisha [1962] 2 QB 26

Poussard v Spiers [1876] 1 QBD 410

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preview essay on Aspects of Contract and Negligence for Business
  • Pages: 7 (1750 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
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