Business law Essay Example | Topics and Well Written Essays - 1750 words

Business law - Essay Example For claiming the business deal undertaken by Sally to be a contract, there must be four significant aspects which are: Offer and Acceptance: Any legal contract must have proper offer and acceptance where one party makes the offer and the other agrees to it. Offer is demarcated as an instance when one individual indicates the willingness to make a business deal. Offer is made by a party by considering the acceptance of other party. The true purpose of offer should be to make legal association2. An offer is an appearance of readiness to contract on specific terms. Offer must be made with the aim that will become obligatory on acceptance. Offer allows the party to approve it and delivers the base of agreement. Offer can exist when objective is involved in purchaser’s words or conduct i.e. intention to commit certain act lawfully to the terms the purchaser recommends3. Communication: Effective communication is a vital aspect for a business contract. The offeree should know regardi ng the offer. The communication should be developed or sanctioned by the offeror. The purchaser cannot approve to something which he/she has no knowledge. Accordingly, the seller should communicate the offer in an intended way4. Consideration: Consideration is essential for proving the validity of contract. Only an ordinary statement of agreement cannot develop a contract. Consideration is regarded as a promise to provide something and gain something in exchange of it5. Assurance: The conditions of contract which are involved in the offer should be clear enough so that they can provide sensible basis for defining the reality of breach in relation to the contract and thus help to enforce action. In terms of product sale, Uniform Commercial Code (UCC) provides criteria in several occasions such as price, time, location of delivery, or payment rules4. Step 3: Application of Law to the Fact In the context of the case study, the above aspects of a legal contract were missing. For instanc e, proper offer and acceptance was not made by the parties. Peter and Burt both had stated to Sally that they intend to purchase the bike. However, it differs from an offer because they did not reach an agreement with Sally that they will purchase the bike. The second essential element of contract i.e. proper communication was absent between Sally and the parties. Although Peter has offered a deal to Sally regarding purchasing of the bike, without his awareness the offer of Peter has been accepted by Sally which was her intentional communication for selling. Furthermore, communication should be made or certified by the offeror. With respect to mutual consideration, it can be observed that the contract had lack of consideration. Although Peter and Burt had specified that they expect to purchase the bike, they had not promised about purchasing. Ultimately, there was no assurance of parties about purchasing. Peter and Burt had not specified any time for purchase in the e-mail and Sally also did not approve any reasonable time for delivery of the bike to Peter. Without a reasonable time, offer cannot be measured as lawful. Step 4: Conclusion Judging from the above aspects, it can be observed that Sally has not made proper contract with any of them i.e. Peter and Burt. There was absence of communication, assurance and consideration. Besides, appropriate offer and