Business Law - The Four Step Process Essay Example | Topics and Well Written Essays - 1750 words

Business Law - The Four Step Process - Essay Example shape is anything that is given in exchange for the promise that is received. STEP TWO There ar three main requirements for the formation of a legally enforceable come including intention to enter into a legally binding agreement, agreement ( twist and espousal) and consideration (without giving note to the value of consideration). Firstly, regarding communication, as a general rule, the acceptance would strickle effect only after it has received by the offerer in this case Peter. present since the brass of sending and receiving pass ons is instantaneous, as soon as the message is received by the offeror, acceptance takes place. However, it should be received by Peter in his email system. This was a rule proposed by the case Brinkibon Ltd v Sthalwharenhandelsgesellschaft 1983 2 AC 34 1982 1 All ER 293 (Beatrix 2005). The acceptance cannot be considered to be accepted unless it is properly communicated and in this case, once the message is in the inbox of the offerors email, the acceptance would be activated. Further in this case, the acceptance had to ensure by the conduct of Sally, mainly by posting the bike immediately, as pass along by Peter. The acceptance was received before the proposed due time suggested by Peter. Regarding the intention to enter into the contract, the same is usually decided objectively by the courts. Here it would be important to see if a reasonable person placed in Peters shoes would regard the agreement as binding. dickens factors that would ensure that the contract is legally binding is that since it should occur between non-related persons where greater importance is given to ensuring a formal nature of the agreement, and secondly since all the discussions are in writing, there are better chances of getting the contract legally enforced. Another legal issue is regarding consideration, which is also an important factor after offer/agreement and intention. Only if there i s an offer, which is agreed and intention of the parties to enter into a legally binding agreement along with a consideration, would it be considered a legal contract. Consideration is anything that has value and is given as an exchange for fulfilling the promise and courts would not look at the value of the consideration. To ensure that the contract is legally binding, a reasonable consideration should be present. This was demonstrated in the case Thomas v Thomas (1842) QB 851 (Lawnix 2012), where the court decided not to go into looking at the adequateness of the consideration. STEP THREE As proposed in the case Brinkibon Ltd v Sthalwharenhandelsgesellschaft 1983 2 AC 34 1982 1 All ER 293 (Beatrix 2005), once the message of acceptance has been communicated to Peter and the message reaches Peters system within the time the offer would be available, the same is considered as accepted. Hence, since the message reaches Peters system by 445 pm before the close of business day, the co ntract is active and is legally binding on Peter, who has to accept it. He has authoritative liabilities and has to pay the consideration. According to the legal systems, email communication is considered as an instantaneous mean of communication and the rules are not clear, but would be similar to the laws that last for fax communication, since both are sending and received instantaneously. However, the message has to be received