Elements of a Binding Contract Essay Example | Topics and Well Written Essays - 2750 words - 1

Components of a Binding Contract - Essay Example The components for each situation will be assessed against the standard of agreement legitimacy. Question 1. In Chong versus Lee, the most importantly finding is that an agreement never existed. Their understanding flops all around to meet the legitimate meaning of an agreement in light of essential deformities, so there was no legally binding consent to break or sue to authorize. Way Lee offered to sell five reconditioned motorbikes to Chong at a set cost, however Chong didn’t acknowledge Lee’s offer; he conceded his answer inconclusively, saying he would â€Å"think about it.† No authoritative understanding was made around then in light of the fact that there was an offer yet no acknowledgment and the two components must be available to make a legitimate agreement. When Chong kept in touch with Lee seven days after the fact, he incorporated extra deal conditions, explicitly in regards to painting the bicycles. No legally binding understanding was accomplished in this example, either. By changing the terms of Lee’s unique offer, Chong was viably making a counteroffer, and certain in a counteroffer is a declination of the first offer, which at that point stops to exist (Graw, 2002). The Postal Rule expresses that an acknowledgment is considered passed on and takes impact at the time it is kept in a substantial postal repository or given to a genuine mailman appropriately arranged for posting. An agreement would have been shaped regardless of whether the letter had never been gotten by the other party. See Adams v. Lindsell (1818). In any case, that standard would not make a difference here, the fundamental explanation being that the letter Chong posted was not a basic acknowledgment of the first offer, however a counteroffer and Lee couldn't have been attempted to have consented to it with no information on it. Regardless of whether Chong’s letter had been a basic acknowledgment of the first offer, an inquiry would have emerged with respect to whether Lee had planned his unique proposal to Chong to stay useful for a week or whether such a timeframe would be esteemed sensible by an adjudicator.