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James decided to sell his car privately - Leaving Cert Business - Question 1(B) - 2009
Question 1(B)
James decided to sell his car privately. He advertised it in a local newspaper. Tom rang James and after much discussion he said he would drop by the following day t... show full transcript
Worked Solution & Example Answer:James decided to sell his car privately - Leaving Cert Business - Question 1(B) - 2009
Step 1
State and explain two elements of a valid contract.
Answer
One of the fundamental elements of a valid contract is the Offer. An offer occurs when one party makes a proposal to another, which could be communicated through oral, written, or conduct methods. The offer needs to be clear and unconditional, ensuring that the receiving party knows exactly what is being proposed.
Another essential element is Acceptance. When an offer is accepted, it becomes binding on both parties. Acceptance can be verbal, written, or implied through conduct. Nevertheless, it is crucial that the acceptance aligns with the terms of the offer without any modifications.
Step 2
Do James and Tom have a contract? Explain your answer.
Answer
No, James and Tom do not have a contract. Although Tom expressed his intention to buy the car, there was no legally binding agreement established between James and Tom. For a contract to exist, there must be a clear offer and acceptance along with other elements of a valid contract. In this case, without Tom's follow-through on the agreement to buy, these elements are lacking.