Formation of a Contract Case Study Example | Topics and Well Written Essays - 1000 words

Formation of a Contract - Case Study Example She asked Janet if she was willing to sell her car for 3000 which she agreed. Janet told Barbara that she would sell the car to her for 3000 if she paid in cash and asked her to come over the following day to see it which she did. The contract between Barbara and Janet was concluded immediately she expressed acceptance of an offer. The issue where Barbara is changing her mind that she was to revoke her acceptance is impossible since the contract between her and Janet is binding and enforceable before a court of law. It is immaterial to state that he was revoking the acceptance because she discovered that the car had some problem as stated by his stepfather Roy. 1 A contract which is an agreement between two or more parties which is intended to create legally binding obligations was created between Barbara and Janet on the sale of the second hand car. The word binding is used for there are some contracts which are valid but are not enforceable. For a contract to be binding there must be an intention to create legal relationship between the parties to the contract. For this case, there was an intention of creating a legal relationship between Janet and Barbara on the sale of the second hand car. ... 2 Acceptance once made cannot be revoked unlike an offer which can be revoked by an express notice before it is accepted. However, acceptance cannot be revoked in any circumstance by either the offeree or the offeror. The moment a person expresses his acceptance of an offer, that very moment the contract is concluded and it does not matter whether the acceptance is by word of mouth, in writing or sent by post. For this case, it was illegal for Barbara to revoke his contract to purchase the second hand car for 3000 from Janet as agreed on the phone with her. Due to this reason, Janet can sue Barbara for damages. 3 The normal remedy for breach of contract is damages where the aim of the law is to place the third party as far as possible in the possible in the position he would have been if the contract had been performed. Janet is entitled to receive nominal damages which are awarded to the plaintiff after proving a breach of contract without suffering any actual loss. On the issue where Barbara had been lend 3000 by his stepfather Roy; there was a legally binding contract between them. There was an agreement that Barbara was to pay the debt by 30 equal instalments. This agreement fulfils all the requirements of a valid contract hence it became binding immediately the money was lend to Barbara by her stepfather Roy. However, Barbara's car was involved in an accident and she requested his stepfather to forgo his monthly instalments so that she could afford the repair of her car after the accident which amounted to 1200. For this case, there was a fresh contract between Barbara and his stepfather Roy to forgo the repayment of the loan for sometime until her financial status returned to normal. In the new contract between