Essay
M1 analyse the impact of the requirements for a valid contract in a given situation
- Institution
- PEARSON (PEARSON)
M1 Unit 21 BTEC Business Level 3 Extended Diploma
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Analyse the impact of the requirements fora valid
contract in a given situation
The given situation
‘’Breach of contract in the case of a private sale
In the Westshore Times on 2 September there was an advertisement to
sell a 1998 Porsche 911 for £21,000. The advertiser was Jamal, giving a
contact address.On 7 September Bob wrote to Jamal stating that he was
interested in buying the car for £20,000.On 9 September Jamal wrote
back to Bob stating that he could not sell the car for less than
£20,500.On 10 September Jamal wrote again to Bob stating that he
would now sell the car for £20,000, and asking Bob to bring the money
and collect the car.On 12 September, the letters sent on 9 and 10
September arrived together at Bob’s house.Bob now refuses to collect
and pay for the car.’’
Analyses
A contract is an enforceable by law agreement between two or more parties.It could
be written or even be in oral. Contracts can be written by using formal or informal
terms, or entirely verbal or spoken.In order to make it valid or enforceable by law it
must follow the four elements which are the offer or invitation to treat , acceptance,
consideration and capacity. Furthermore, all of these will create legal relations
between the parties.
In the situation above the offer is made by Jamal who advertised to sell his 1998
Porsche 911 for £21,000 in the Westshore Times on 2 of September, also he gave
his contact details his own address.By making an advertisement we can deduct that
he didn’t make an offer but an invitation to treat.The difference between those two
is that an offer is a definite promise in exchange for performance by another
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