Business law

Running Head : Business Law

Business Contracts (Name (Course (Lecturer (Date

Question A

The case of the CEO and Ronnie constitutes a valid offer and acceptance and can be considered a valid and enforceable contract . Though the CEO 's offer was motivated by Ronnie 's disparaging remarks about his business the two finally met and discussed the deal . The CEO makes an offer of 50 ,000 which is accepted by Ronnie without dispute . The offer is communicated to Ronnie verbally , which is an accepted means of communication . Indeed , a contract can be made

either verbally or in writing . There are other actions which communicate the sealing of the deal . The CEO 's winking and smiling is a sign of satisfaction that the deal has been struck . Upon accepting the CEO 's offer , the two again shake hands , which is a nonverbal way of communicating agreement . Though the CEO does not actually intend to sell the house , he communicates this to Vinnie , and not Ronnie himself . If this is meant to cancel the offer the cancellation is not effective because it is not communicated to Ronnie . Similarly , Vinnie is not Ronnie 's agent and he cannot therefore be said to have received communication of his behalf . The fact that Ronnie started moving into the house shows that he was satisfied that the contract had been sealed . All other factors remaining constant , an offer can only be withdrawn before a contact is entered (Barnett , 2003 The CEO cannot therefore cancel the contact at...