Law in Business

Essay by linlinhyuk May 2004

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1 . Question 1 :

This question presents two scenarios, both of which revolves

around the issue of whether there is a contract.

To solve the legal problem , advise Justin , We need to know :

What is "Contract"?

"A Contract is essentially an agreement between two or more

persons which will be enforced by a court of law . "(Brendan

Sweeney & Jennifer O'Reilly , Law in Commerce , Second Edition) .

And contract is constituted by four factors :

Offer + Acceptance+ Intention+ Consideration= Contract

1.1 Part 1.

In return for Justin's benevolence of fixing the fence, Leanna decided to pay him fifty dollars. She is making an offer in this instance, and is therefore the offeror. By thanking her Justin has made an acceptance to Leanna's offer of the money, and he is therefore the offeree. So far, this exchange could be construed as a contract because of the existence of an offer and acceptance made through oral communication.

However, the problem arises when there's a lack of terms of conditions in their agreement. Without communicating details such as an exact date of when Justin can receive the fifty dollars or any other conditions, their exchange appears more like an invitation to

treat. When examined further, we see that as Justin has not provide any consideration, this cannot be a contract, especially as Leanna's

offer is only a gratuitous promise.

Ultimately, Justin seems unlikely to obtain a remedy for the fifty dollars that didn't receive, as this was not a binding contract enforceable of the court of law. Leanna hasn't committed any legal wrong , rather the worst she has done is committed a moral wrong .

1.2 Part 2.

After Justin has agreed to the terms of Rebecca's new offer, Justin promptly paid the relevant...