Business Law Essay Example for Free

Business Law EssayAn agreement must contain four essential ingredients to be regarded as a ignore. These four elements are offer, acceptance, Intention of legal consequences, and consideration. If any one of them is missing, the agreement will not be legally binding. An offer is outlined as the manifestation of the willingness to enter into a softwood so made as to justify another person in understanding that his assent to the bargain is invited and will conclude it. There must be a definite, clear stated offer to do something. An offer does not include ball super acid estimates, requests for proposals, expressions of interest, or letters of intent. An offer will lapse when the condemnation for acceptance expires, if the offer is withdrawn before it is accepted, or after a reasonable time in the circumstances (generally the greater the value of the contract, the longer the life of the offer). Only what is offered potty be accepted. This means that the offer must be accepte d incisively as offered without conditions. If any new terms are suggested this is regarded as a counter offer which drop be accepted or rejected.There can be many offers and counter offers before there is an agreement. It is not important who makes the final offer, it is the acceptance of that offer that brings the negotiations to an end by establishing the terms and conditions of the contract. Acceptance can be effrontery verbally, in writing, or inferred by action which clearly indicates acceptance (performance of the contract). In any case, the acceptance must conform to the method cocksure by the offerer for it to be effective. A contract requires that the parties intend to enter into a legally binding agreement.That is, the parties entering into the contract must intend to attain legal relations and must understand that the agreement can be enforced by law. The intention to create legal relations is presumed, so the contract doesnt have to expressly state that you underst and and intend legal consequences to follow. If the parties to a contract decide not to be legally bound, this must be clearly stated in the contract for it not to be legally enforceable. In order for a contract to be binding it must be back up by valuable consideration. Consideration consists of either a benefit to the promisor or a detriment to the promisee.That is to say, one party promises to do something in excrete for a promise from the other party to provide a benefit of value (the consideration). Consideration is what each party gives to the other as the agreed scathe for the others promises. Usually the consideration is the payment of money but it need not be it can be anything of value including the promise not to do something, or to refrain from exercising some right. The payment doesnt need to be a fair payment. The courts will not intervene where one party has made a hard bargain unless fraud, duress or unconscionable conduct is involved.When there is a breach of con tract, an unexcused failure to perform, the other party is usually given damages, rather than specific performance. The rules of damages vary, but are usually intended to make the injured party whole. A party who was supposed to be paying(a) something for that partys performance gets the amount of the payment due, if the performance has been rendered. A party who was supposed to get something of value sometimes gets the difference between the price agreed and the grocery store price. Or, if the party has already paid the paying party sometimes gets the money back.