Write 4 pages with APA style on Business contract Law. In case of a material change in a proposed contract, it must accompany a counteroffer, which has to be acceptable by the other party (Emerson, 2009: p87).
A contract cannot only subsist on the basis that their exist agreement between two parties. However, the parties to the stated agreement must intend to form a legally binding agreement (Emerson, 2009: p82).
Consideration refers to the price paid for the promise of the other party. The price mentioned must be of value although it may not necessarily refer to money. It may consist of some right, interest, profit of benefit to one party or, on the other hand, loss or responsibility incurred by the other party (Adams, 2012: p65).
Parties to a contract must be competent and authorized to enter into a contract, and therefore, not all individuals are fully free to enter into a valid contract. The following group of people involves problematic consent: people with mental impairment, minors, bankrupts, corporations and prisoners (Adams, 2012, 65).
Refers to the parties mutual understanding and assent to the expression of their agreement. The consent of each of the parties in a contract must be genuine in the sense that they must agree to the same thing, in the same sense and at the sense time (Gillies, 2006: p143).
Annabel Constructions Ltd. only made a contract with Murray & Co. regarding supplying and fixing double-glazed windows. The issues relating to the additional amount of $20,000 bases only on a promise made between Annabel Smith and John Murray, which creates neither a contractual obligation nor a legal right between them. A promise differentiates from a contract in the sense that a valid contract creates an obligation to the parties and is enforceable in the court of law, whereas a promise without any consideration creates no legal obligation to be enforced in a court of laws (Kelly et. al. 2013: p231).
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