Business contract Law Essay Example | Topics and Well Written Essays - 1000 words - 1

Business contract Law - probe ExampleIn case of a material change in a proposed contract, it must keep an eye on a counteroffer, which has to be acceptable by the other party (Emerson, 2009 p87).A contract cannot only if dwell on the basis that their exist agreement between two parties. However, the parties to the stated agreement must think of to form a legally binding agreement (Emerson, 2009 p82).Consideration refers to the price paid for the promise of the other party. The price mentioned must be of value although it may not necessarily refer to money. It may harp of some right, interest, profit of benefit to one party or, on the other hand, loss or province incurred by the other party (Adams, 2012 p65).Parties to a contract must be competent and authorized to count on into a contract, and therefore, not all individuals are fully free to enter into a valid contract. The pastime group of people involves problematic consent people with mental impairment, minors, bankrupts , corporations and prisoners (Adams, 2012, 65).Refers to the parties mutual understanding and assent to the formula of their agreement. The consent of each of the parties in a contract must be genuine in the comprehend that they must agree to the same thing, in the same sense and at the sense time (Gillies, 2006 p143).Annabel Constructions Ltd. only made a contract with Murray & Co. regarding supplying and fixing double-glazed windows. The issues relating to the additional amount of $20,000 bases only on a promise made between Annabel Smith and John Murray, which creates neither a contractual obligation nor a legal right between them. A promise differentiates from a contract in the sense that a valid contract creates an obligation to the parties and is enforceable in the court of law, whereas a promise without any affection creates no legal obligation to be enforced in a court of laws (Kelly et. al. 2013 p231). Therefore, due to the absence seizure of essential terms of considera tion, the