Oral Contract Case Study

842 Words2 Pages
bulb-icon

Recommended: Magazine analysis example

In the following paragraph, we will analyze the case by using some questions as a guard line. First, it is the definition and characteristics of the contract, offer, and acceptance. Second, it will about the nature of advertisement that appeared in the case. Third, we will talk about the relationship between Alan and Charles through analyzing and case study. Final, we will explain the oral contract occurs or not and the termination of an offer.

The contract is a voluntary, deliberate, and legally binding agreement between two or more competent parties. One party makes an offer that is accepted by the other party. If without mutual assent, there is no contract. Every contract must involve at least two parties that are the person who proposes …show more content…

Advertisement usually not offers unless clear intention. Invitation to treat is a contract law term, it includes the display of goods on shelves, it is not equal to offer; the advertisement of a price or an auction; and an invitation for tenders or competitive bids. As Alan saw an advertisement in the magazine of an antique vase which stating ‘On offer for $1,500,000’, owned by Charles, it is not an offer, just an invitation to treat and Alan have not made the decision for acceptance, therefore, the contract has not existed. Nowadays, there are many advertisements publish in magazines, such as diet, clothing and event promotions, they all have no legal consequence unless …show more content…

He made a phone call to Charles, he is an offeror, who state the amount of $1,250,000, Charles is an offeree, the plaintiffs made an offer to buy at a lower price. The offer was rejected and subsequently. So that, Charles rejected the offer by stating the amount of $1,400,000. At this moment, Charles become an offeror and Alan is an offeree. The rejection by Charles is treated as a counter offer, it also amounts to a rejection of the original offer. In this case, it has not had acceptance between Alan and Charles. Since Alan wanted a lapse of time of one week for thinking. By this case, there was held that no contract was made. Alan was no limits to the authority of Charles sold the vast to other people. He cannot prevent Charles and Eddie’s

Show More
Related

  • Laduzinski V. Alvarez & Marsal Taxand LLC Summary

    570 Words  | 2 Pages

    The contract between the Alvarez Companies and Laduzinski carried the certain elements of a basic contract since there was an offer, an acceptance, and a consideration. Perez offered plaintiff a position with the Alvarez companies, adding that the company was interested in obtaining plaintiff's contacts to have

    Read More

  • Case Study Of The Real Estate Purchase Contract

    1649 Words  | 4 Pages

    This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller.

    Read More

  • Lambert V. Barron Case

    1495 Words  | 3 Pages

    Whether oral or written, the contract must manifest a mutual intent to be bound expressed in a manner capable of being understood, and include a definite offer, unconditional acceptance and consideration.” (Express Contract 2016) The above definition is a much clearer explanation with key elements outlined; 1. mutual intent, 2, expressed in a manner capable of being understood, 3. definite offer, 4. unconditional acceptance and 5. Consideration.

    Read More

  • Contract Law Case Study

    1012 Words  | 3 Pages

    When discussing the concept of contract law, there exist two bodies of legal rules that may apply to the contract. These bodies are the common law of contracts and Article 2 of the Uniform Commercial Code or the UCC. The common law of contracts is court made and is constantly changing, but the UCC is required in every state within the U.S.A. It is important to know which one to use and when, as well as what the differences between them are.

    Read More

  • Explain The Law Of Disaffirmance Of A Contract In Business Law

    3180 Words  | 7 Pages

    1.1 Explain at least four points of differentiations between contract and agreement with the help of examples.

    Read More

  • The Four Step Process Of The Case Of Carlill V. Carbolic Smoke Ball Company

    1279 Words  | 3 Pages

    Agreement is a mutual understanding of two parties and willing to accept terms and conditions in order to form a legal contract (Penthony et al.2014). Agreement consists of two components; offer and acceptance. Offer is made by an offeror in an exchange for performance from another party on certain terms while acceptance is the action of accepting to the terms of the offer. An offer must follow the requirement in order to form

    Read More

  • Four Elements Of A Contract Case Study

    730 Words  | 2 Pages

    The case presented is that of Sam Stevens who resides in an apartment. He has been working on an alarm system that makes barking sounds to scare off intruders, and has made a verbal agreement with a chain store to ship them 1,000 units. He had verbally told his landlord, Quinn, about his new invention and Quinn wished him luck. However, he recently received an eviction notice for the violation of his lease due to the fact that his new invention was too loud and interrupting the covenant of quiet of enjoyment of the neighbors and for conducting business from his apartment unit.

    Read More

  • What Are The Four Requirements For A Valid Contract

    736 Words  | 2 Pages

    Contracts and agreements have many key differences. A contract is an agreement between two parties that is legally binding. In order for a contract to be valid and have legal standing, it must have four requirements; consideration, contractual capacity, and legality. Without all four of these requirements it is not considered a contract and has no legal standing. An agreement is an understanding or some type of arrangement between two or more parties and does not need to have the four requirements that a contract must have. Most of the time, agreements are informal and not enforceable by law.

    Read More

  • The English contract Offer and Acceptance

    1227 Words  | 3 Pages

    The English contract Offer and Acceptance General principles There are three basic essentials to the creation of a contract which will be recognised and enforced by the courts. These are: contractual intention, agreement and consideration. The Definition of an Offer. This is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the offeror as soon as the person to whom it is addressed accepts it. An offer can be made to one person or a group of persons, or to the world at large.

    Read More

  • Case Study Of Offer And Acceptance In Modern Contract Law

    894 Words  | 2 Pages

    One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015)

    Read More

  • Essay On Formation Of A Contract

    709 Words  | 2 Pages

    The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.

    Read More

  • Case Study on Contract Law

    2381 Words  | 5 Pages

    The issue in this case is whether there is a legally binding contract between Roland and Bernie. The things that needs to be considered is whether there is an agreement between Roland and Bernie. If there is an offer and acceptance, then there is an existence of agreement. According to Section 2(a) of the Contract Act 1950, offer can be defines as when one person implies his/her willingness to another in order to acquire their consent. (Abdullah et al, 2011) The person who make the offer is known as ‘offeror’ or ‘promisor’. (Lee and Detta, 2009) An offer can be made in the method of orally, by conduct, writing or by the mixture of these forms. An offer must require an effective communication with offeree. The formation of contract when offeree accepted the proposal. (Dass, 2005)

    Read More

  • Carill V Carbolic Smokeball Case Study

    1388 Words  | 3 Pages

    This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).

    Read More

  • Essay On Contract Law

    2266 Words  | 5 Pages

    A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,

    Read More

  • “Past consideration is no consideration”

    1509 Words  | 4 Pages

    A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.

    Read More

More about Oral Contract Case Study

Open Document