Business and Company Law

Business and Company Law

Under the English Law , there are several ways to form a contract . These include verbal dialogue , telephonic communication , by a facsimile or by a written deed . A contract can also be formed on the basis of the conduct of the parties (Chissick Kelman , 2002 .

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There should be an offer , which was made by the offeror and accepted by the offeree , in to form a contract . The offeree should have accepted the offer as specified by the offeror or as implied by the offeror . The acceptance of

the offer can be either in words or actions Such words or actions should be in accordance with the terms of the offer . There should not be any ambiguity in the terms of the offer . The acceptance should correspond to the identical terms of the offer . If any new terms were introduced in the offer then it would constitute a counteroffer

Communication of acceptance can be through instantaneous modes . Examples of such instantaneous communication modes include sending message in person , by a facsimile , over the telephone or by sending an electronic mail . Under such circumstances , the offer and acceptance come into force immediately after the offeror receives such communication

If an advertisement made by one party consists of an offer and the other party had accepted the offer in good faith , then such an advertisement becomes a legally binding contract (Adediran , p122

In case a person invites another for a dinner or a treat and they discuss business related issues at the place where they met , their negotiations would result in a trade agreement . However such an invitation to dinner or treat is not legally binding . On the other hand an offer is legally binding (Clark , 2001 p176

After several years of operating a limousine hire business , Kelly planned to retire and accordingly placed an advertisement in the news . This advertisement stated that there were two black limousines for sale at a cost of ? 15 , 000 . Britney saw this advertisement and told Kelly that she would indicate her decision in the succeeding week . The very next day Kelly informed Sarah by electronic mail , that she would sell the cars to her for ? 12 , 000 . Sarah replied by electronic mail that she was interested , only if the cars were repainted white . In the following week Britney agreed to purchase the cars for ? 15 , 000 and she spoke to Kelly in this regard , directly Meanwhile , John saw the advertisement and posted his acceptance in the correct fashion and offered to buy the cars for ? 15 , 000 from Kelly

Sarah had agreed to buy the two limousines for twelve thousand pounds However , she agreed to do so only if these black coloured limousines were repainted in white . This constitutes a counter offer . Therefore the original offer made by Kelly is no longer in operation . Hence , there is no contract between Kelly and Sarah

In Butler Machine Tools Co v Ex-Cell-O Corp , the seller had offered to sell machine tools to...