Valid Contract Case Study

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Recommended: Requirements of a valid contract

A valid contract is an agreement including promises made between two or more parties with an intention of certain legal rights and legal responsibility that are enforceable. For there to be a contract – that must contain four essential elements- offer, acceptance, intention to create legal relations and consideration. Offers is the promise made by the offeror and it must be distinguished from invitation to treat it also has a general rule that advertisement or brochures or price list amount to invitation, it cannot be defined as a valid offer. In this case Tony as an offeror he only advertised to invite consumer to treat according to the case Partridge v Crittenden [1968] 1 WLR 1204 generally this advertisement cannot be regarded as offer and there is no promise between Tony and Emma at beginning. Even though this advertisement …show more content…

In this case Tony only would like to provide this sale offer and it has a time prescribed. Tony said: “I have limited stock and his offer will end at 5pm today”. Therefore 5pm is the expiration date. For acceptance, it must be made within a reasonable time, and in the case the expiration date is 5pm, after that time the offer will lose efficacy. Then after 5pm Emma would like to receive this counter-offer and pay $1,900 to buy this TV, however Tony reject her the reason that is the counter-offer is lapse. Consideration is an aspect of the concept of mutuality underlying the law contract, and it is each party in contract bargains with and gives in exchange for return promise or performance of other party. In this case the consideration is an executory and the price $1,900 is has a legal value so the consideration is sufficient and the original price that Tony would like to sale is $1,900 and Emma received this price so the consideration is adequate. Therefore, there is a valid

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