Business Law (mng 4104) Recess Period 2020/2021 Introduction to Law
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- Introduction to Contract Law
- Element: Offer
| We will be focusing on legislation and judicial precedent.
Legislation is fairly straightforward as is. It is written law that we have to follow. It is our country’s rule book. Case law or common law is a little less defined. Common Law Ordinarily, common law is associated with ‘English Common Law’. But it is not particular only to England. Numerous forms of common law have existed and endured, in several European legal systems, including France, Italy, Germany and Spain. They developed from Roman roots and achieved their commonality by indigenous reception instead of imposition. In respect of the common law of England - and those many countries to which it has been exported - previous decisions of courts (judicial precedents) are a fundamental source of law. The doctrine of precedent stipulates that the reasoning used by courts in earlier cases is normally binding on courts who subsequently hear similar cases. The idea is based on the principle ‘stare decisis’ (latin for ‘let the decision stand’). It is, of course, designed to promote the stability and predictability of the law, as well as ensuring that like cases are, as far as possible, treated alike. Every common law jurisdiction has its distinctive hierarchy of courts, and the doctrine of precedent requires courts to follow the decisions of courts higher up the totem pole. In doing so, however, the lower court need follow only the reasoning employed by the higher tribunal in reaching its decision - this is known as the ‘ratio decidendi’ . Any other statements made by the judges are not binding: they are ‘things said by the way’ (latin ‘obiter dicta’). For example, a judge may give his opinion on the case, which is not relevant to the material facts. Introduction to Contract Law Agreements are an indispensable element of social life. When you agree to meet your friends for a drink, borrow a book, or give a friend a lift to work, you have entered into an agreement. But the law will not compel you to turn up at the bar, or return the book, or pick your friend up in your car. These social agreements, while their breach may cause considerable inconvenience, distress, and even expense, fall short of a contract as understood by most legal systems. One of the hallmarks of a free society is the autonomy it affords its members to strike the bargains of their choice, provided they do not harm others. Freedom of contract may be defended also on utilitarian grounds: by enforcing contracts in accordance with the value placed on things by the market, resources - goods and services - may be bought by those who place the highest value upon them. It is sometimes claimed that this yields a just distribution of scarce resources. Those who champion the free market consider individuals to be the best judges of their welfare. In the 19th century - especially in England - the law of contract, as the facilitator of the optimum relations of exchange, was developed to a high degree of sophistication (some would say mystification) in pursuit of this cardinal value of commercial and industrial. It is certainly true that business is unimaginable without rules of contract , but there is an inevitable inequality of bargaining power in any society. For there to be a legally binding contract there must be present several elements. These elements are: An offer An acceptance of that offer Consideration must pass between the parties and There must be an intention to create legal relations. If one of these elements is missing, then a legally binding contract cannot exist. Element: Offer Agreement is the first essential element of contract formation. A binding agreement involves a meeting of the minds (consensus ad idem) and a contract may be achieved by the acceptance of an offer. Offer An offer can be described as a final statement or proposal by one person (offeror) to another person (offeree). The statement or proposal is usually made on certain terms and often follows a process of negotiation. In other words, an offer only exists when there is nothing further to negotiate – either the offer is accepted or it is rejected. Download 30.14 Kb. Share with your friends:
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