StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business Law #4 - Case Study Example

Cite this document
Summary
On May 1, BNI Inc. send Carol a letter, via overnight delivery, offering to employ her to audit BNI's financial statements for the current year for $1,000. In the letter, BNI stated that Carol had ten (10) days to accept the offer. On May 5, Carol sent BNI a fax that stated, "The price for the audit seems too low…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91% of users find it useful
Business Law #4
Read Text Preview

Extract of sample "Business Law #4"

BUSINESS LAW #4 On May BNI Inc. send Carol a letter, via overnight delivery, offering to employ her to audit BNI's financial ments for the current year for $1,000. In the letter, BNI stated that Carol had ten (10) days to accept the offer. On May 5, Carol sent BNI a fax that stated, "The price for the audit seems too low. Would you consider paying $1,200" BNI received the fax. The next day, Dan offered to conduct the audit for $800. On learning of Dan's offer, Carol immediately e-mailed BNI, agreeing to do the work for $1,000.

BNI received this email on May 7. Explain why BNI and Carol do, or do not, have a contract.Issue: This situation involves the issue of offer and acceptance with regard to a contract.Rule: The "mirror image rule" states that if you are to accept an offer, you must accept the offer exactly, without modification. If you change the offer anyway, this is a counter offer that kills the offer (Uniform Commercial Code, Section 2-207).Analysis: An offer and acceptance is one of the elements used to determine whether a contract exist between two parties.

Offer is defined as may be defined as an expression of willingness to contract on certain terms, made with the intention that I shall become binding as soon as it is accepted by the person to whom it is addressed. Acceptance, on the other hand, is a final and unqualified expression of assent to the terms of the offer ("Offer and Acceptance - Acceptance"). As the general contract law principles which are applicable in almost all jurisdictions, the offer by the person making the offer (offeror) must be accepted without qualification or further negotiation by the other party to whom the offer was made (offeree).

Once an offer was made, the offerre can respond in four ways: accept, reject, make a counter offer, or do nothing. An offer is deemed terminated if the offeror revoke the offer, or if the offeree gave counter offer or rejected the offer, there was a lapse of time to which an answer o the offer should have been made, death or disability of either party, or if the performance of the contract becomes illegal after offer is made ("General Contract Law Principles"). Acceptance of the offer may be made through writing a letter or sending it through fax or email.

The aforementioned principles of contract law is applicable no matter what kind of contract you are entering into, even in a contract of employment as in the case a hand.Conclusion: Applying the general principles of contract law as stated, there was no valid contract between BNI and Carol because there was a counter offer made by Carol as to the offered salary by the company to her. The original offer was $1,000 but she asked for $1,200 salary. Under the rules, a counter-offer kills a contract as if no contract has been made.

Therefore, no contract exists between BNI and Carol.References"Contract Law - An Introduction". Expert Law.com. Retrieved on March 9, 2009 at "Employment Contracts" US Law.com (Online). Retrieved on March 9, 2009 at "Offer and Acceptance". Global Oneness. com. Retrieved on March 9, 2009 at

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business Law #4 Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Business Law #4 Case Study Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1523035-business-law-4
(Business Law #4 Case Study Example | Topics and Well Written Essays - 500 Words)
Business Law #4 Case Study Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1523035-business-law-4.
“Business Law #4 Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1523035-business-law-4.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business Law #4

Business and Contract Law

Business Law 4 [School] [Course/Number] November 24, 2015 [Instructor Name] Case Study 1 The assigned contract of Parks to XYZ Corporation, as the new owner of the San Diego Slick is valid.... According to Emanuel (2010), “All contract rights are assignable, unless they fall within the three exceptions provided by the Second Restatement [Section 317 (2)] and also Uniform Commercial Code (UCC) Section 2-210(2), containing similar language” (p....
2 Pages (500 words) Essay

Business LAw 1

business law 1 Name Name of institution Professor Date A brief introduction of the company and reasons for choosing this form of business Essentially formation of a public company requires a minimum of seven members while that of private requires a minimum of two members.... Conversely, under the amended UAE law of 1984, a private company must have at least two shareholders (American-Arab Affairs Council, 1984).... The new law allows incorporation of a company by a sole shareholder holding all the shares in the company....
4 Pages (1000 words) Assignment

Do Chinese Firms need to adopt the Anglo-American Model and Can they adopt it

hellip; Research has found many similarities to the Anglo-American model that are already in place in China, including protectionism for shareholder wealth, creating transparency in financial reporting and organisational strategy development, as well as avoiding executive-level or Board-level misconduct that could jeopardise business longevity.... However, Chinese state-owned firms complicate the process of adopting the Anglo-American model due to Communist influence in Board representation and the manifesto of Communist ideology that is directly opposite to the liberal business and social policies that are entrenched in the Anglo-American model....
12 Pages (3000 words) Essay

The Role That Documents Play in a Documentary Credit Transaction

The paper “The Role That Documents Play in a Documentary Credit Transaction” focuses on a documentary credit, which is an arrangement whereby a bank acting at the request or on the instructions of the applicant for the credit (the buyer) agrees to make payment.... hellip; The author states that globalization and technology have shrunk the world to a great extent....
3 Pages (750 words) Assignment

Documentary Credit Transaction

The trade partners have strived for the sustainable success, and have been successful in development of corporate and business relationship with its valued customer.... The banking institute has tried to evolve a healthy relationship with their partner, based upon mutual trust and understanding, the banking institute understand the responsibility on their part, and has tried to accomplish objectives and aims through recognition of its role and responsibility "as a financial intermediary brings with it a duty of responsible conduct and engagement"....
15 Pages (3750 words) Essay

Business Law dis #4

However, this clause will impose business law discussion 4 Question 3 page 315 In the case Guyan Machinery and Albert Voorhees, the issue is if Guyan is entitle to enforce the non-compete clause and if this is enforced, another question that arises is whether this will go against Albert's freedom....
1 Pages (250 words) Coursework

The International Arbitration Act

hellip; The specific provisions that list the grounds upon which a court may refuse and enforce an arbitral award are that a court may not enforce an award if one of the parties had an incapacity at the time that the agreement was made; that the agreement is not valid in the country in which it was made, or under the law upon which the agreement was made.... 1]  Part of the reason for this is because “Australia is obliged to implement its international obligations in good faith, including treaty obligations to which it has voluntarily subscribed, and demonstrate respect for the rules of international law” (NSW Young Lawyers International law Committee)....
15 Pages (3750 words) Term Paper

Business Law - The 4 Step Process

This work called "business law - The 4 Step Process" describes the process of acceptance of the contract.... The author outlines three main requirements for the formation of a legally enforceable contract: agreement, agreement (offer and acceptance) and consideration, the role of conditions and warranties, legislations for interpreting the law....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us