Business Law - The Four Step Process Essay Example | Topics and Well Written Essays - 1750 words

Business Law - The Four Step Process - Essay Example circumstance is anything that is given in substitute for the promise that is original. STEP TWO There argon three of import requirements for the formation of a legally enforceable contract including intention to enter into a legally stick to pledge, agreement ( plead and bankers acceptance) and consideration (without giving note to the value of consideration). Firstly, regarding communication, as a general rule, the acceptance would constitute effect only after it has received by the offeror in this display case Peter. Here since the system of sending and receiving messages is instantaneous, as soon as the message is received by the offeror, acceptance takes place. However, it should be received by Peter in his email system. This was a rule proposed by the case Brinkibon Ltd v Sthalwharenhandelsgesellschaft 1983 2 AC 34 1982 1 All ER 293 (Beatrix 2005). The acceptance cannot be considered to be accepted unless it is in go od order communicated and in this case, once the message is in the inbox of the offerors email, the acceptance would be activated. Further in this case, the acceptance had to ensure by the conduct of Sally, mainly by posting the bike immediately, as communicate by Peter. The acceptance was received before the proposed due time suggested by Peter. Regarding the intention to enter into the contract, the self alike(prenominal) is usually inflexible objectively by the courts. Here it would be important to see if a sensible person placed in Peters shoes would regard the agreement as binding. two factors that would ensure that the contract is legally binding is that since it should occur between non-related persons where greater importance is given to ensuring a formal nature of the agreement, and secondly since all the discussions are in writing, there are better chances of get the contract legally enforced. Another legal issue is regarding consideration, which is also an importan t factor after offer/agreement and intention. Only if there is an offer, which is agreed and intention of the parties to enter into a legally binding agreement along with a consideration, would it be considered a reasoned contract. Consideration is anything that has value and is given as an exchange for fulfilling the promise and courts would not look at the value of the consideration. To ensure that the contract is legally binding, a valid consideration should be present. This was demonstrated in the case Thomas v Thomas (1842) QB 851 (Lawnix 2012), where the court decided not to go into looking at the adequacy of the consideration. STEP THREE As proposed in the case Brinkibon Ltd v Sthalwharenhandelsgesellschaft 1983 2 AC 34 1982 1 All ER 293 (Beatrix 2005), once the message of acceptance has been communicated to Peter and the message reaches Peters system within the time the offer would be available, the same is considered as accepted. Hence, since the message reaches Peters sys tem by 445 pm before the close of business day, the contract is active and is legally binding on Peter, who has to accept it. He has sure liabilities and has to pay the consideration. According to the legal systems, email communication is considered as an instantaneous mean of communication and the rules are not clear, but would be similar to the laws that exist for fax communication, since both are sending and received instantaneously. However, the message has to be received