The scenario of this report is based on a specified case of Juan and Crystal, who have been planning in indulge into a contract. In this regard employee of local Citizen Advice Bureau is asked to provide advice on a contract matter by considering:
- Provide an advice by considering law related to contract, business transactions, management of company, business liabilities, employment rights and so on.
- Determine areas of business and contract law in context to legal sources, business liabilities, employment rights by considering findings through primary and secondary sources.
Business law covers various aspects that helps in ensuring that the contract related measures of parties are appropriate as well as practicable. The report discuses regarding a case of Juan and Crystal, who have been planning in indulge into a contract. However, the same was not been made possible due to miscommunication in offer and acceptance aspect of the agreement. The report discuses regarding various concepts related to business law, especially, offer, acceptance and its revocation. The report will then discuss various remedies that can be adopted by Juan.
The case discusses regarding Juan, who is young entrepreneur, owning a super food smoothie stand. He is keen to indulge in supporting the owners of other local business as well so he always buys his food products required to run a smoothie stand from a local organic farmer, called, Crystal, located at Barnsford.
On Monday, Juan left a message on telephone, on the answering machine asking Crystal that he needs to buy Kale and asked for the week’s price with respect to per case of kale. Juan also stated that he needs the product as soon as possible. In answer to the message being received from the side of Juan, Crystal, faxed the prices of kale stating that it is £10 per box. He also stated that the price is valid for Monday only. He also stated that he is only left with the 2 boxes and more boxes can be made available to Juan, later in this week. Juan immediately replied on the fax being received form the side of Crystal that he requires those two boxes to be made delivered on Wednesday and he also wants other 2 boxes of kale to be delivered on coming Friday, but he is expecting that he will get all the four boxes at same price (McKendrick, 2014).
Crystal was not able to receive his fax until Tuesday morning due to his indulgence in some farmer convention. However, due to not receiving any type of replay from the side of Juan, Crystal affirmatory answered and decidie3d to provide its product to another trader who was ready to pay £20 per box. He decided that all the production being made by Crystal will be transferred to the new trader for next three weeks.
Juan got upset when he received the news, which was conveyed by Crystal. He thought that the acts being performed and adopted by Crystal is unfair enough as he does not have any other source to get smoothie from.
The issue that can be analysed from the scenario presented above is related to business transactions that took place between Juan and Crystal. The issue can also have been generated due to offer and acceptance being made between Juan, Crystal and the other trader which was ultimately bring able to gather the offer. Offer and acceptance is the tradition approach that has direct link to contract law. The contract is generally made between offeror and the offeree, which are generally the parties who may be planning to come into the binding contract. Offer ios considered to be an expression of willingness to contract with the other individual on the exact terms being offered without having any type of negotiation so that the obligatory contract can be treated as acceptance only. Further, offer can be different from the of invitation as it can also include negotiation aspect in it as well (Schwenzer, Hachem and Kee, 2012).
There are various aspects where the offer can be considered as terminated. The first aspect related to it is that if the offer has already been accepted, there is no circumstances that the same can be made available to the other individual again. Further, if the offer is once rejected by one individual, then it tends to end on that that terms for that particular individual. There are other three ways based on which the offeror has the right to reject the offer being made by him. First is when the offeror notice that offeree is not in any mood of accepting the offer made. Second is, when the offeree wishes to accept the offer but based on certain conditions to be implemented in the overall offer being made (Kraakman and Hansmann, 2017). The third is if any type of counter offer has been made by the offeree to the offeror, in that case also he deserves the right to reject the offer. However, there are certain situations, where, offeree may be asking for certain more information and is not being counter offering. In this scenario, there are chances that the offeror and offeree may settle down on the same perspective in the end.
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Contractual agreement- offer and acceptance
In certain cases, the offeror enjoys the right to revoke the offer before it has actually been accepted by the offeree. But is only possible in the case whebn revocation have already reached to the offeree before the new offer has been accepted. Revocation can also be communicated by the reliable third part as well. Considering the same aspects in the case scenario given for Juan and crystal as well. Revocation being made by Crystal was not initially communicated to Juan, before the new offer could have been accepted. In this scenario, it is from the side of crystal that unfair treatment has actually been initiated on the part of Juan (Stone and Devenney, 2017).
There are certain rules of acceptance as well which are required to be followed by offeror as well as offeree. It is important that the acceptance is appropriately being communicated. The acceptance being kept in the mind and not being communicated appropriately is not considered as accepted. The legal implication of the same must also be communicated and if it has not been accepted by the offeror then no legal binding of acceptance is considered with respect to this. The acceptance from the side of offeree and offeror cannot be treated as a silence clause. In case of Juan and Crystal, the offeror did not receive the message and hence silence was not considered as acceptance of offer. Considering this scenario, Crystal is right at his part that he did not treated silence as acceptance of offer from the side of Juan (Vogenauer, 2013).
Further, another aspect that is related to acceptance is that, if the offer includes a particular method of communication. It can be in the form of post or fax as well. It is important that the method being used for acceptance must be appropriately been chosen by the two parties in such a manner that the method is convenient to both the parties. If the offeree has used the similar method in order to communicate the acceptance, then in that scenario, it will be treated as accepted. Further, if any type of counter offer has been made at the time of acceptance of offer, then in that case, it has high dependence on offeror that whether he / she wants to accept the offer or not (Hall, Howells and Watson, 2012).
Rejection of offer or lapse of time is the other scenario that has been attached to the business transactions that are required to be taken into consideration while offering or rejecting a particular offer. As per the rule of convenience in offer and acceptance of business transactions, if the offer has been accepted by post, then in that case, there must be contract existing claiming that the acceptance letter has already been posted by the offeree (Andrews, 2015). Hence, in case of Juan, since the price sheet was actually gathered through fax, it was the appropriate method to show acceptance as well. It can be stated that the method being used by Juan to communicate the acceptance of offer to Crystal is appropriately being placed from Juan’s side.
It is important to communicate acceptance to the seller, which was already been done from the side of Juan. However, in this scenario, Crystal is at mistake that he has not been able to receive the acceptance letter due to this schedule. However, other situation is that the terms and conditions in which the acceptance has actually being made by the offeree must match to what has actually been communicated by him by the seller. It the terms and condition on which the offer has been accepted is not same, then int hat case, it will be considered as a counter offer and no contract will be considered as arisen from the same. Further, the agreement must be certain and legally bound so as to convert it into a valid contract (Poole, 2014).
Remedies for breach of contract can be available that can ultimately be adopted by Juan in a manner that it can help him in coping up with the situation. Since, business law is related to creation of legal business relations, it can help in suggesting the methods that can be taken by offeror and offeree in a manner that the actions can be taken by them in case of breach of contract. In case of breach of contract, there are certain situations that offeror makes the offer and does not wait for the reply from the side of offeree and indulge in the contact with some other individual. In this scenario, the first offeree has right to sue the offeror and claim for the damages. Hence, it can be stated that Juan can ask Crystal to pay for the damages. Injunction is another aspect, which helps in preventing harm where, court can help Juan from claiming the amount of harm that has been initiated from the side of Crystal by not seeing the accepted offer and indulging in some other offer (Tushnet, 2017).
Hence in the given scenario, it can be stated that any change in the contract terms while accepting the offer do not make the individual liable from performing the particular acts. In this scenario, Juan and Crystal, who tries to indulge into the contract through offer and acceptance where, Crystal made the offer to some other individual without waiting for the reply from the side of Juan made him liable to pay for the damages which are actually being incurred by Juan. Hence, in this scenario, Juan have right to sue Crystal and ask for compensation (Ellison and Boyd, 2013).
However, the main issue that may arise in gathering compensation from the side of Crystal is counter offer being made by the party while accepting the offer and it has not being accepted as it is as it was actually being made by the parties. Therefore, it can be stated that there are chances that the individual may not be able to gather compensation due to changes being made y him in the actual offer wile making an acceptance.
From the above report, it can be concluded that, the case discusses regarding Juan, who is young entrepreneur, owning a super food smoothie stand. He is keen to indulge in supporting the owners of other local business as well so he always buys his food products required to run a smoothie stand from a local organic farmer, called, Crystal, located at Barnsford. The issue that can be analysed from the scenario presented above is related to business transactions that took place between Juan and Crystal. In certain cases, the offeror enjoys the right to revoke the offer before it has actually been accepted by the offeree. There are certain rules of acceptance as well which are required to be followed by offeror as well as offeree. Rejection of offer or lapse of time is the other scenario that has been attached to the business transactions that are required to be taken into consideration while offering or rejecting a particular offer. Remedies for breach of contract can be available that can ultimately be adopted by Juan in a manner that it can help him in coping up with the situation.