Law of Contract Essay

Document Type:Essay

Subject Area:Law

Document 1

For a contract to be valid all essential of a binding agreement must be provided. Bernard Case Issues The issues to be discussed is whether the contract between Bernard and Alan is binding as to the essentials of a valid contract and whether the contract is valid or not. For an agreement to be enforceable it has to provide for all the needed essential which are an offer, acceptance, consideration, and capacity (McKendrick 2014). In this case, Alan is the offeror, and Bernard is the offeree as he has agreed to the proposal by replying to Alan’s offer. The essential of consideration has also be provided as Alan is ready to sell his exercise book and textbook at $200. Hence, Alan sends Bernard a post saying that he is only selling for $200, not $150 which is the counter offer Bernard had sent.

Sign up to view the full document!

Application of the Law In the case, Bernard counter offers $150 for Alan’s books which he later rejects. Later on 4th November, he gave another offer which according to the law cannot be accepted by the offeror as he had already rejected the first offer (Arvind 2017). To demonstrate, the case of Hyde vs. Wrench, where Wrench offers to sell his land for 1000pounds, but Hyde sends a counter offer of 950pounds which is rejected. For this particular contract offer was presented which is one of the necessities of a valid deal (Frey 2015). Charleen, Alan’s younger sister, saw the suggestion of her brother selling his books on his Facebook account and decided to approach him and offered to pay for the books.

Sign up to view the full document!

But Alan only smiled, and Charleen thought he had accepted the offer this was a mistake. Not to mention according to the law of contract the person who is interested in the offer should reply to the acceptance using the same method the offer was offered which Charleen did not do (O'Sulliva, & Hilliard 2016). Example, in the case of Eliason vs. When she placed the money on Alan’s table, it was already passed the deadline for the payment which was on 5th November, and she had put the money on 7th. According to the law of contract, any acceptance given after the deadline is considered void (Arvind 2017). According to this case, Alan did not breach the contract as Charleen had misinterpreted his actions.

Sign up to view the full document!

Conclusion The contract is not binding as some of the basis of a valid contract has not been met. For an instant, Alan did not accept Charleen offer as she did not communicate her intentions in the required manner. In this case, consideration is supplied as Alan agrees to trade his books for $200 while Damien decides to transfer his $200 for the books. As claimed by the law of contract the contract between Damien and Alan is valid as all the essentials have been met. Application to Law As stated by the law the contract between Damien and Alan is valid because Damien gave the cash to Alan on time. Additionally, Alan accepted the money and agreed to deliver the books by 7th.

Sign up to view the full document!

On 7th Alan bought a similar textbook and together with his exercise book passed them to Damien. The advantage of this method is that the two can come up with a decision that will favor the two parties (Goldberg, Sander, Rogers & Cole, 2014). On the contrary, the method can be severe to the weak side which ends up destroying the relationship between the two parties. One more method is mediation. Mediation is a method where a third party is required to facilitate the negotiation process (Staff 2018). The mediator does not decide for the parties but only help them come up with the solution to the conflict. Also, sometimes the arbitrator may not use the law instead he or she may choose to decide outside of statute a solution that he may seem fair to all (Ware 2016).

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template