Business law Essay Example | Topics and Well Written Essays - 1500 words - 2

Business law - Essay Example Subsequently, the counter-offer by Stein was rejected by Doe. Later, Stein sent an acceptance letter to Doe agreeing with the terms mentioned in the offer initially made by Doe. However, within the gap, Doe had already accepted the offer of MARK Drugs to work as a research director in the company, which spares various reasons to disregard the contract as valid. According to the law of contract, acceptance and offer are quite essential to be made in a transparent manner, where the intention of both the parties, i.e. the offeror and the offeree must be informed as legitimate and viable. In accordance with the scenario, it can be observed that Doe (as the offeror) and Stein (as the offeree) have informed their offer as well as acceptance/non-acceptance through postal medium to create a legal relationship. As per the contract law, parties involved in agreements are required to be legally associated in order to execute duties legally, after a confirmed acceptance has been made voluntarily by the offeree1. However, in this case, Stein made no confirm acceptance of the offer made by Dr. Doe, which makes the contract void, as it does not support any legal obligation to exist between the two parties. In simple words, there was no acceptance made to the offer, which makes the contract void. ... The feedback provided by the president of the company implies that the offer was accepted and it is valid. But, the president of the company made a counter-offer stating that the company will recruit Dr. Doe for the position of vice president with a salary of $300,000 per annum, which certainly cannot be regarded as an acceptance by law. Correspondingly, rejection of the original offer, as prescribed by Doe, was presented with a counter-offer, which signifies that the first original offer has become void and cannot be accepted in future. In a similar case of Hyde v Wrench [1840] 3 Beav 334, it was identified that Wrench made an offer to sell to Hyde a piece of land for a price of ?1,000. Hyde made a counter offer of ?950, which was later rejected. Subsequently, Hyde accepted the original offer but it was rejected. Consequently, the (proposed) contract amid Wrench and Hyde was identified to be invalid2. Hence, in the case of Dr. Doe and Stein, the offer can be identified as a mere inv itation without any legal consideration and obligation. Apparently, there was no legal binding between the parties for the service-term and appointment of Doe in the company, which can further be argued with reference to the case of Gibson v Manchester City Council [1979] 1 All ER 972. In this case, a letter was provided to Mr. Gibson by the Manchester City Council to sell the house at a rate of $2,180. During the period, there was certain change in the policy of the Council and Mr. Gibson was refused with the proposal to purchase the house. It was later determined that the letter from the Council was a mere invitation, which signified that there was no contract between the parties3. In this case, however, an acceptance was made by Stein