Contract problem solving Essay Example | Topics and Well Written Essays - 2500 words

Contract problem solving - Essay Example The discussion that follows will examine the actual offer and acceptance and their implications for the existence or non-existence of legally binding variation clause. Another important issue arises out of the doctrine of consideration. If there is no consideration, a valid contract will not exist at all. The brochure submitted by ICL to GSL contains the type of computer that GSL is looking for, but requires a software modification. The computer is advertised at 2,500 pounds as is. GSL responds to the advertised model by asking whether or not the software modification can be made. ICL replies that the software modification can be made, but will be subject to a price variation and that variation will override any clauses contained in the purchase order. Upon placing the order, GSL submits their standard order form which does not contain a variation clause, but does state that the parties are bound by the terms and conditions contained in the purchase order. Upon receiving the order form, ICL signs the form and returns it to GSL. These facts are crucial since the contract between the parties will be formed at the exact moment at which an offer is accepted. In the course of negotiations it is typical for an offer to be made. That offer is required to contain a definite promise providing sufficient and unambiguous details for the other party to accept or decline.1 All contracts begin with an offer, it therefore follows that the offer is required to be stated with clarity. Put another way, the party to whom the offer is directed or communicated must be able to determine from that offer exactly what it is that is being offered as well as the terms of the offer.2 The law is quite clear that in order for the acceptance of an offer to be legally binding it must follow the essential substance of the offer made.3 The offer in this case originated in a catalogue. The initial question is