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 above all else finding is that an agreement never existed. Their understanding flops inside and out to meet the legitimate meaning of an agreement in view of crucial deformities, so there was no authoritative consent to penetrate or sue to uphold. 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 uncertainly, saying he would â€Å"think about it.† No legally binding understanding was made around then on the grounds that there was an offer yet no acknowledgment and the two components must be available to make a substantial 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 authoritative understanding was accomplished in this occasion, either. By changing the terms of Lee’s unique offer, Chong was adequately 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 stored in a substantial postal container or given to an authentic mailman appropriately arranged for posting. An agreement would have been framed regardless of whether the letter had never been gotten by the other party. See Adams v. Lindsell (1818). Yet, that standard would not make a difference here, the principle reason being that the letter Chong posted was not a straightforward acknowledgment of the first offer, however a counteroffer and Lee couldn't have been dared 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 expected his unique proposal to Chong to stay useful for a week or whether such a time allotment would be considered sensible by an appointed authority.