Contract Law P1,P2,M1

2721 Words11 Pages
Legal requirements for a valid contract By Bindiya Limbu Index 1. Legal Criteria for contract to be valid ………………………………………… - Pg 4,5 2. Offer differ from an invitation to treat?...................................... – Pg 5 3. How application of law related to contract affect a business?....- pg 5 4a. Difficulties arise between offer and acceptance………………………… – Pg 6 4b.counter offer differ from an offer?................................................ – Pg 6 5. Types of Misrepresentation. Cite the relevant case law.............. - Pg 6-8 6. Importance of valid consideration……………………………………………..- Pg 8 -9 Identify the legal criteria for offer and acceptance in a valid contract. Explain the law in relation to the formation of a contract in a given situation. A contract is a legally binding agreement in court of law. We need contracts to define the relationships that we have in our business with all other business. Because having the contract holds you and the other party to a set of agreement. There are five elements to valid a contract. Offer- This is the first step when forming a contract. It is required when you want to legally bind a contract. You have to be clear when making an offer. Case: Fisher v. Bell [1961] – A shopkeeper displayed a flick knife in a window with price labelled. The customer makes and offer asking to buy the knife but the shopkeeper refused him. The buyer filed a case but the shopkeeper was not guilty, because a display of anything in a shop window is simply an invitation to treat. Therefore, this means under the law, the buyer was the one who made an offer to buy the knife. Acceptance- is the agreement to offer.

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