BUS205 CA MOD 1 Essay Example | Topics and Well Written Essays - 750 words

BUS205 CA MOD 1 - Essay Example The offer should be accepted as given and there should be no change of conditions. Counter offer occurs where new terms are suggested, and it may be rejected or accepted. Acceptance of the offer is the one which will terminate the negotiations which are establishing the contracts terms and condition. For a contract to be valid, it should have valuable considerations. In this case, one of the parties makes a promise to perform something and in return of the promise the offeree should give a benefit of the value. So consideration is any value each party offers to the other as they agreed. Intention of legal consequences is also an element of a contract; it needs the parties to engage themselves in a law binding agreement. The parties making the agreement should create a legal relation and they should know that also the agreement may be enforced by the act of the law. Not all the people who are allowed to enter into the contract which is valid. The following list of contracts of people who have problematic consent and they are dealt separately; minors or young people, bankrupts, those people with a mental disability, corporation and prisoners. For a person to enter into a contract, the action or decision should be out of goodwill. Consent of all the parties in the contract should be genuine. An appropriate consent will be influenced by; duress, mistake, undue influence and false statement. A contract is breached when one party fails to stick to the agreement and makes the other party not to perform (Richard 219). In this of Chappelle breached the contract because he did not stick to the agreement he had with Mustafa. Their agreement was that Abueljia was to manage his business and be paid though the contract was not in written form. A business contract as this one of Chappelle and Abueljia creates certain obligations that they had to fulfill because they were in a contract. Chappelle by dismissing