Legal, Ethical, and Regulatory Issues in Business

Legal, Ethical, and Regulatory Issues in Business

 

 

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Legal, Ethical, and Regulatory Issues in Business

A contract is an agreement between two or more parties, which is enforceable by law. Contracts may be established orally or have elements in writing. However, there must be elements that should be present in order to make the agreement a contract. Such elements as mutual assent (offer and acceptance) and considerations are very important in the formation of the law. The absence of either of these elements proves the contract void.

Brigitte Godot told Mr. Kettle that she would get a free trip to Paris if he bought $20000 in widgets in twenty-four hours. At that time, Godot was an employee of International Widgets and so could transact or do sales related business on behalf of the company. In other words, she was an agent of the company. Offer and acceptance should take place for a contract to exist. Godot offered a trip to Paris if Mr. Godot would buy the widgets. Mr. Kettle accepted the offer by buying the $20000 in widgets. The amount of $20000 was good consideration since it was the consideration asked to begin with.

In a case such as Carlill v Carbolic smoke Ball Company, the elements were laid down by the court. The advertisement put on the paper was considered as an offer made to the world. The buying and using up of the smoke ball was considered as acceptance, and the inconvenience of putting the smoke ball in the nose was considered enough consideration. In this case, there was a contract.

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