Aspects of Contract and Business Law Essay

Laws, contracts and customs are rules that shape our everyday lives. These date back for centuries. There are a number of different elements that make up a valid contract that can be used in business today, these consist of the following. Offer Offers are made to sell or buy a product from an individual or company. Unilateral offers are offers that apply to everyone, i.e. an advert in a newspaper. An offer must be precise, specific and certain. In order for there to be a contract then an offer must first be in place. Rocky Tops offer indoor climbing sessions to the public upon which they choose to accept or not, depending on the price. Their offer to host indoor climbing lessons must be clear on what the customer will get in return for their money, this would be things such as how long the sessions last, what will be available to them and whether equipment is included within the price. Consideration Consideration is when an individual or company assesses what they would get out of the offer and what benefit it would be to them. So when Nick saw the poster and went to buy a new set of ropes and crampons he had to consider what would he was getting out of the deal. He has to hand over his cash in order to receive the ropes and crampons and needs to assess whether it is a beneficial outcome to him. Two Parties A contract is between two parties. One contract cannot provide details for anymore participants as it wouldn’t be certain enough. In order for it is certain one contract is kept between two parties. One party will offer a deal and the other party has to consider whether to accept it or not. An example of a contract formed between two parties within the case study is Rocky Tops and Julie. This is when Julie decides to book a block of 6 climbing lessons and signs a document stating that the sessions can be cancelled by either herself or Rocky Tops within 7 days’ notice. Capacity In order to accept an offer you must have the capacity to do so. This requires you to be above the age of 18 and in the right state of mind to carry out the deal with full knowledge of what you are getting into (i.e. you can’t be under the influence of alcohol or drugs). Rocky Tops is formed by a partnership between Bill and Ben. When they anticipated to both make Rocky Tops into a partnership they both had the right capacity to do so, this means they could make the decision individually to go ahead with the partnership contract in which they are both legally bound to. Acceptance Acceptance is when both parties agree to the terms and conditions stated in the contract and are both aware that they are legally bound to the contract. When an individual accepts the offer the contract is signed. Rocky Tops accepted an offer from Weathering Heights as they agreed to purchase  £50,000 worth of equipment to be dispatched and delivered by 1st February 2011. They agreed to the terms and conditions and both parties are legally bound to the contract. Communication Communication between the two parties needs to be consistent as each individual needs to be clear on what they are agreeing to and also needs to be kept in the loop should anything change in the contract. When writing up the contract it should be clearly communicated, especially with price. The buyer must be aware of the final cost because if the price included contained hidden costs then the contact isn’t valid and there are grounds for complaint. Bill and Ben, the owners of Rocky Tops, had to communicate with Julie in order to tell her that her third lesson has been cancelled. They did so 10 days prior to the third lesson via a letter. The letter stated that if she fails to rebook within one week she will forfeit her money for that session. Legality When writing up the contact everything stated has to be legal. You can’t put anything that is against the law as it will make the contract invalid. Rocky Tops did this when creating a sales contract with Julie when she wanted to book a block of 6 climbing lessons. They had to make sure that everything stated in the contract was all legal in order to prevent the contract falling through or being taken to court. Intention When an individual or company decides to accept the contract they must do so with the right intentions. This means that when they sign the contract they are actually willing to carry it out and are serious about it. This is evident in the case study when Rocky Tops agreed to purchasing  £50,000 worth of equipment from Weather Heights. This was a contract that the terms were defined by the supplier. Rocky Tops entered with the right intentions as they actually meant to go through with the contract. Case Study Contracts: â€Å"Bill and Ben are keen rock-climbers and wish to establish a new business† Partnership contract â€Å"They aim to have their grand opening on 1st March 2011 and already have premises confirmed† Estate agent contract â€Å"Rocky Tops have agreed to purchase 50,000 worth of equipment from Weather Heights to be dispatched and delivered by 1st February 2011† Terms of supplier contract â€Å"Rock Tops will also be offering instruction and lessons on their indoor climbing wall to both novice rock climbers and the more experienced† Liability Insurance Contract â€Å"Nick sees the poster and buys a new set of ropes and crampons† Sales Contract â€Å"Julie goes to Rock Tops and books a block of 6 climbing lessons and signs a document stating that the sessions can be cancelled by either herself or Rocky Tops within 7 days notice†