FOUNDATIONS OF BUSINESS LAW Case Study Example | Topics and Well Written Essays - 1500 words

FOUNDATIONS OF BUSINESS LAW - Case Study Example Based on the promise to be made between the parties, contracts can be divided into bilateral and unilateral contracts. Bilateral contracts revolve around both parties ensuring that they fulfill their promises while in unilateral contracts the offeror still has to perform their part of the agreement (it is a promise for and act) (Barker 2005). For a contract to be valid, it needs the parties to have legal capacity, the existence of a purpose of legality, and the parties should have consent and any form of requirements satisfied. The intentions ascribed to any contract intention is very important. The parties to the agreement must intend for the agreement to be legally enforceable. If there is no intention, such an agreement automatically results into no contract (Barker 2005). To decide whether an intention to create legal relations was present, the courts will apply objective tests. The court looks at the conduct of both parties from the perspective of an objective observer and asks whether the parties were behaving in a way that indicates their intention that the agreement be legally enforceable. Traditionally, social, family, and voluntary associations were presumed to have no contractual intentions while commercial or business intentions were presumed to have valid and lawful contractual intentions. Contracts are linked with agreements. An agreement is a meeting of intellectuals and exists when two or several people share an intention or an understanding. Negotiations precede agreements for a given time. Sometimes the conduct of the entities in an agreement can help to deduce the existence of a finalized agreement. With the aforementioned in mind, I and my sisters are not in a contract. Ordering some fish from them was as an act of brotherhood. To add to that, there was no meeting between us and therefore no agreement was reached between us. A contract