Also, an offer will include intention to do business and as a final feature the offer must be communicated to the offeree.The communication of an offer may be written or spoken but it may usually be by conduct. On the other hand, acceptance in order to be legally binding, it is appropriate to fulfil three main rules. To start with, acceptance must be a ‘mirror image’ of the offer. This is meant that the offeree must be agreeing to all terms of offer and not trying to insert new terms. Secondly, acceptance must be firm and finally must be communicated to the offeror.
Conditions Often times, in contract law, conditions can be put into the contract that state items that must be satisfied in order for the contract to remain in force and or force the other party to honor their part of the contract. The type of condition that would apply to this case is a condition precedent, which is an act or event that, unless excused, must exist before a duty of immediate performance of promise arises. The basic issue here is that the stadium was to be completed in the time desired. Even with condition precedent, however, as a general rule if the provision is relatively insignificant, it would be not entitle the plaintiff to collect damages. The question that obviously arises is the determination of rather the failure to meet the condition was significant or insignificant.
A Negotiation in dispute is where both parties try to resolve a situation without the use of a third party. One of the advantages of negotiating is there isn’t attorney costs involved. The process is an understanding between two parties. The advantage of negotiating is there isn’t a financial burden on legal services. But the disadvantage is when one party doesn’t fulfill their end of the bargain then the case gets brought forth to court to have it put in writing.
During the offer-acceptance process counter offers may be allowed and an agreement can be established based on the original terms outlined. The offer-acceptance process though must follow the rules of communication test of whether a binding agreement was made. Those rules are as follows: “1. The acceptance must be communicated. Prior to acceptance, an offer may be withdrawn.
RUNNING HEAD: WIMPY, BLUTO & POPEYE 1 Wimpy, Bluto & Popeye BA 260 Grantham University RUNNING HEAD: WIMPY, BLUTO & POPEYE 2 Wimpy, Bluto & Popeye To have a valid contract you need a clear offer and a clear acceptance. This is sometimes called “meeting of the minds.” It is important to be clear and understand that a contract can be considered an agreement which is entered into by two parties voluntarily. Both parties have the intention of creating and upholding a legal obligation. Contractual Liability is defined “as liability that does not arise by way of negligence, but by assumption under contract or agreement (www.wiki.com). Contractual Liability is common in written and oral business agreements.
Offer communicates the willingness of the offer or to come into an arrangement between two or more persons or entities. An acceptance is the proposal of the person to limited time of the offer. Objective standards determine if an agreement of both parties are established. Intention two parties must agree to enter into a contract legally. Consideration is the price paid to the other party of a binding agreement.
Add Special Merchant ii. Mutual Assent: Mutual Assent requires that the essential terms of the contract are sufficiently definite and certain and that both Abe and Bob agreed to those terms. The problem in this case is that the price term “cheap” and the price is dependent on
An agreement requires a meeting of the minds of both parties. The two sub-elements, offer and acceptance must present to form an agreement. Offer is a statement that indicates a willingness to contract. There are two parties involve in an offer: Offeror and offeree. The offeror is the person who makes offer and the offeree is the person who receives the offer from the offeror.
Whether or not B will have a cause of action for damages for breach of contract depends on whether the Heads of Agreement is itself an enforceable contract. Since A and B have executed the Heads of Agreement, they themselves may have come to an agreement, and execution excuses the need to go through an offer and acceptance analysis to find an agreement. Moreover, the language of the document reflects this conclusion; it records the completion of negotiations for the ‘Heads of Agreement’. Nevertheless, as a matter of law, the parties must have reached a certain and complete agreement R. Under the objective theory of contract; it cannot be concluded that the parties have reached an agreement if it is impossible to ascertain the meaning and legal effect of the terms agreed. Moreover, despite the execution of a document, there will be no enforceable agreement if the contents of that document evidence a positive intention not to contract.
If the dispute is referred to an international arbitrating body, the commercial partners must agree on whether to accept that body’s ruling as binding or non-binding. If it is binding, then the companies must agree that the dispute is settled. If it is non-binding, it is agreed that the ruling is a strong suggestion as to what the outcome should be, as well as a signal to the rest of the world as to what a non-biased decision is regarding the dispute. The disputing parties can abide by the non-binding decision or choose to use more resources and time in