Essay about Rules on Formation of Contracts - 1116 Words

In order for a contract to be formed, there are various requirements. These are offer, acceptance, consideration, and the intention to create legal relations. A contract may also be terminated. There are two types of offer; specific and general. Specific offers are those made by one person or group of people who can choose to accept, and general offers are made to a generalised majority, such as in rewards and public advertisements. In the case of CARLILL v CARBOLIC SMOKE BALL, a general offer had been made, as it was a publicised advert. The company did not comply with the terms that it had stated; therefore the court held that the contract had been breached as an offer had been made. It was rightly decided that most offers†¦show more content†¦In BROGDEN v METROPOLITAN RAIL CO it was held the railway company had accepted by placing orders since the amendment of the document, and in TRENTHAM LTD v ARCHITAL LUXFER the court used the reasonable man to identify whether or not there has been acceptance. Both cases seemed to have reasonable outcomes; therefore the courts had been provided with satisfactory rules to help them reach a appropriate verdict. There are various different rules regarding acceptance. There must be a communication of acceptance from the offeree to the offeror. The case of YATES BUILDING v PULLEYN deals whether there had been a prescribed acceptance or not. It was held that there was no practical difference to the offeror therefore the acceptance method was binding. However in the case of ENTORES LTD v MILES FAR EAST CORPORATION there was no prescribed acceptance, yet it was held that the contract was formed in England as that was there acceptance had been received by telex. Other rules that can be used to decide whether there has been acceptance include a waiver of communication of acceptance; silence, which isnt a valid acceptance; ignorance, generally there isnt a binding contract; and acceptance via post using the postal rule. The postal rule can often be misused, as it states that a contract has been formed asShow MoreRelatedRelations Between China And China1367 Words   |  6 PagesConvention on Contracts for the International Sale of Goods (CISG), which establishes a system of uniform sale of goods rules to govern the rights and obligations of parties to international sales contracts by taking into account the differing legal systems and different business expectations common in cross-border transactions. Despite the provision of the uniform international sales contract rules, it is still critical, in some situations, to become acquainted with each country’s contract law, forRead MoreThe Postal Acceptance Rule1373 Words   |  5 PagesAcceptance Rule (Mailbox Rule): The Postal Acceptance Rule or Mailbox Rule is a common law term for contracts that determines the formation of a contract in which the involved parties are communicating through the mail. The primary thrust or core of the mailbox rule is that the acceptance of an offer is sent before the revocation of the specific offer is received. In a scenario where the communication is sent rejecting the offer while a later communication is also sent in acceptance of the contract, thenRead MoreThe Offer and Acceptance Model Is Flawd- Only an Agreement Is Necessary1464 Words   |  6 Pagesconstitutes acceptance. â€Å"An offer is a statement by one party of willingness to enter into a contract on stated terms, provided that these terms are, in turn, accepted by the party to whom the offer is addressed†. Acceptance is â€Å"†¦an unqualified expression of ascent to the terms proposed by the offeror†. The â€Å"Offer and acceptance model† is based on the court’s ad opt the â€Å"mirror image† rule of contractual formation. Applying the definitions stated above, we can take this to mean that there must be a clearRead MoreThe Origin of the Doctrine775 Words   |  4 Pagesin some cases, cause parties to experience injustice, sometimes something that the courts fail to resolve, consideration is a crucial element to the formation of a legally binding contract. This paper will not only explain why the High Court should not abolish the requirement for consideration but will also highlight its usefulness in contract formation. Origin of the Doctrine of Consideration The origin of the doctrine of consideration can trace its roots back to the 16th century when it becameRead MoreAnalysis Of Gabe s Contract With Crane Entertainment1484 Words   |  6 PagesTo determine whether Gabe’s contract with Crane Entertainment is actually valid, we must test the essential elements (legal capacity, consent, legality of purpose and form), making sure all these elements are deemed satisfiable in the clearly apparent simple contract. 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As such, the court will mostRead MoreThe Applicability Of Postal Acceptance Rule Essay1350 Words   |  6 Pages1500 The Applicability of Postal Acceptance Rule in Hong Kong’s Context DU Manji, 53671036 1.The Introduction Especially for the past decades, not only in the legal profession but also across the commercial spectrum, a constant debate as to whether the Postal Acceptance Rule (hereinafter referred to as ‘the Rule’) should be sustained or discarded has never been so profound in Hong Kong. To this end, the paper is intended to argue for maintenance of the Rule for reassurance of less uncertainty in businessRead MoreCase : Averill V. Essay1176 Words   |  5 Pages Case: Averill v. Gleaner Life Ins. Soc. (2009) Facts: Averill (Plaintiff) brought action again Gleaner (defendant) for alleged breach of contract regarding retirement benefits. 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