Contract Law Assignment Example | Topics and Well Written Essays - 2000 words

Contract Law - Assignment Example The question that needs to be determined in the sale transaction between Tom representing the Buyer and Max representing the Seller is whether Tom, in making the payment of 28,000 pounds has paid up in full according to the contractual terms, or whether Buyer will be liable to pay the additional amount of 2800 pounds that is being claimed by Seller, as a function of a small price rise that is sanctioned under the terms of its standard sale/purchase agreement that Tom has filled up when placing the order for the equipment. Contractual validity: In order for a contract to be valid, â€Å"there must be a definite offer mirrored by a definite acceptance.†1 In the case of Harvey v Facey2 a telegram sent by Facey confirming price was deemed not to be an offer3, however in the instant case, the Buyer (Tom) has made a definite offer to purchase the hydraulic jack system for the price listed (28,000 pounds) in the brochure while the Seller (Max) has orally agreed to supply the goods at the agreed list price of 28,000 pounds. Therefore, a contract has come into being and Max’s acceptance of the contract may be seen by his action in going ahead with the manufacture of the Hercules equipment.