Legal Aspects of Business - Law of Contract Assignment

Legal Aspects of Business - Law of Contract - Assignment Example The first and foremost thing essential for the formation of an agreement and then a contract is an offer. Offer indicates one’s willingness to do something or abstain from doing something with an intention to obtain the assent of the other. This proposal is meant for entering into a legally binding agreement. Acceptance means the approval of the other party to whom the offer has been made. In the given assignment, John is the ‘offeror’ and Kathryn is the acceptor. The offer of John to sell a brand I-Mobile for â‚ ¬300 was accepted by Kathryn though with certain changes in the actual offer. Another essential element of a valid agreement and contract is the proper communication regarding offer and acceptance. As Miller and Gentz (2010, 208) point out, two parties can enter into an agreement only through the communication of the proposal or offer and its acceptance. Such a proposal made by one party to the other is called an offer. Once the other party to whom the offer is given accepts it, it becomes a promise. Acceptance is the consent of the other party to the invitation of the first party to do something or abstain from doing something (ibid). An assent or consent to the offer is termed as an acceptance. To make the communication of offer and acceptance more meaningful, the parties in a contract must have agreed upon the subject matter of the contract in the same sense and in the same manner (ibid). A mere mental resolve on the part of the offeree to accept the offer does not amount to acceptance due to lack of manifestation of the intension to do so. There should be an oral or written communication between the offeror and the acceptor regarding the acceptance or denial of the same. Here, no such offer has been made by John to Kathryn. What John has made is just a statement that he is ready to sell his last year model mobile phone