Offer and Acceptance in Modern Contract Law MyAssignmenthelp.com

Question: Discuss about the Offer and Acceptance in Modern Contract Law. Answer: Introduction: This is to bring to your notice that with respect to the contract between the B Food Company, certain issues may arise within such contract. Since the executive of the B Company does not wish to enter into detailed or a written contract and due to shortage of time, detail discussion regarding the terms of the contract could not be discussed, certain contractual issues might arise from such obligations. The issues are discussed in details in the following paragraphs. An agreement that is enforceable at the law is termed as a contract. The Common law does not impose any restrictions on the mode of communication that is used to form contracts. Therefore, oral or verbal contracts are equally binding as the written contracts (McKendrick 2014). In order to make a valid contract it must include the following essential elements- offer, acceptance, consideration, legal intention and certainty. The absence of any of these essential elements shall render the contract unenforceable at law. An offer is the willingness of a party to enter into a contract with another person with legal intention to be legally bound by the contract. One of the issues that may arise is the issue related to the offer of the contract. To constitute an offer, the offeror must be clear and certain while communicating the terms of the contract (Poole 2016). However, due to shortage of time, the terms proposed by the A Food company could not be discussed with the B food company. Previously, both the companies did not reach an agreement with respect to the remedies for the breach of the contract; exclusivity that is, whether Company A would be allowed to contract with other distributors or whether company B would be permitted to distribute for other companies. Further, the companies did not reach to an agreement regarding the capacity of the company B to contract the subcontractors; the companys responsibility to remove debris and the adjustment of contractual price, etc. Furthermore, for a contract to be valid, the person whom the offer was made must accept the offer. An acceptance of an offer may not result in a binding contract in case the parties do not intend to become legally bound by the contract; however, if the contract is a written contract then it shall have a binding effect upon the parties to the contract (Andrews 2015). Moreover, another issue that may arise is that since the parties are intending to enter into verbal contract, the legal intention of the parties may become a hindrance in the future. One of the shortcomings of verbal contract is that the parties may fail to become legally bounded by the contract as a verbal agreement lacks binding effect and the probability that either party may deny his or her part of the obligations. In the event of a breach of contract, it would become difficult to establish the obligation of the breaching party in the absence of a written contract (Furmston 2017). Another essential element to render a contract valid and enforceable at law, it is pertinent that the parties to the contract ensure that the agreement is not uncertain and vague so that it may give rise to a binding contract. A contract may become unenforceable if the essential terms of the contract are not settled at the time of offer and acceptance, but left for future discussion without any means of ensuring agreement (Bozovic and Hadfield 2015). As both the companies have not discussed about the essential terms yet and have left such discussion for future without any means of ensuring any written agreement. The companies had only reached to an agreement regarding the exclusivity and remedies but have not been able to discuss about other essential terms of the contract such as whether the companies can distribute for other companies and contract other distributors, responsibility to remove debris and adjustments regarding the price. There is a lack of certainty regarding these essential terms and it may give rise to contractual issues. Lastly, issues related to the breach of contract might arise with respect to the verbal agreement both the companies are intending to form. Breach of a contract refers to a violation of an essential term or terms of a contract (Fried 2015). In case of a written contract, both the parties to the contract are under statutory obligation to perform or fulfill his or her part of the obligation that may arise out of the contract. In the event when either party fails or intentionally does or omits to do any act that such party was required to do or omit to do as per the terms of the contract, such party shall be said to have committed a breach of such contract. Non- performance of a contract may amount to anticipatory breach of contract. It implies that if either party to the contract communicates to the other party that he or she shall not be able or is not willing to perform his or her part of the contractual obligation, such person shall be held liable for committing anticipatory breach of contract. However, the breaching party must communicate the same prior to the date of completion of the performance of the contract (Bayern 2015). However, since oral contracts are equally valid as written contracts, therefore it is valid that the companies enter into a valid contract. Nevertheless, a verbal contract may give rise to issues in the event of breach of the contract (O'Sullivan and Hilliard 2016). Although the companies have come to an agreement regarding the remedies that the aggrieved party may become entitled to, in case of a breach, but it would be intricate for the aggrieved party to establish the commission of the breach as the breaching party may conveniently deny his part of the contractual obligation. From the above discussion, it is evident that in order to form a valid contract, it is advisable that the companies enter into written agreement so that both the companies shall become legally bound by the contract. Further, it would be convenient for the co0mpnaies to incorporate essential terms in the contract specifically and clearly which would make the contract certain and enforceable in the court of law. Reference List Andrews, N., 2015.Contract law. Cambridge University Press. Bayern, S., 2015. Offer and Acceptance in Modern Contract Law: A Needles Concept.Cal. L. Rev.,103, p.67. Bozovic, I. and Hadfield, G.K., 2015. Scaffolding: Using formal contracts to build informal relations in support of innovation. Fried, C., 2015.Contract as promise: A theory of contractual obligation. OUP Us. Furmston, M.P., 2017.Cheshire, Fifoot, and Furmston's Law of Contract. Oxford university press. McKendrick, E., 2014.Contract law: text, cases, and materials. Oxford University Press (UK). O'Sullivan, J. and Hilliard, J., 2016.The law of contract. Oxford University Press. Poole, J., 2016.Textbook on contract law. Oxford University Press.