Business Law

Essay by benfrench2003University, Bachelor'sA, February 2004

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In this assignment I intend to show and understand the law of contract using examples, real cases and legislations.

First I will explain using examples and appropriate cases the difference between an offer and an invitation to treat. Then I will define the term consideration, showing the rules and including appropriate cases.

I will then apply this knowledge to answer using real examples and cases the legal relations in business and commercial relationships with their differences.

All this knowledge and through further research I will then apply the rules acts and legislation surrounding contracts to a real life situation.

Explain using examples and appropriate case the difference between an offer and an invitation to treat.

When someone makes you an offer, it is a proposal made on certain terms by the offeror together with a promise to be bound by that proposal if the offeree accepts the stated terms.

The offer can be a bilateral one which means it is between two people (face to face) for example when a head teacher of a school wrights to a student offering them a place at their school this offer can only be accepted by that specific pupil. If an offer is made to a group it can be accepted by any member of that group. An offer can also be made unilaterally, which means it is an offer to the whole world for example the U.S. government has offered a reward for the whereabouts of Osama Binladen. The offer can be accepted by anyone who knows about it, and finds Binladen.

An example of a case concerning a true offer is that of Carlill v Carbolic Ball Co (1893). The company was so sure of its smoke balls that they placed advertisements in newspapers stating that it would pay anyone...