Essay on Contracts Example | Topics and Well Written Essays - 1000 words

On Contracts - Essay Example A valid offer may thus be made orally, in writing or by conduct. In the scenario, a question arises on when a valid offer was made by either party. Was it made by the brochure advertising the vehicle and its price? Or was it made by peter when he wrote to the sales company reserving a new Vectra 2.0i, Corsican Blue, for the price of ?15,749? An offer must be distinguished from an invitation to treat. An invitation to treat is generally a negotiation on in which a seller of a commodity gives the price of the commodity, not as offer that is capable of acceptance by the buyer, but rather as an invitation to conduct further negotiations on the price of the commodity. This means that if a seller of a commodity posts the price of a given commodity on the commodity itself, newspaper, brochure, or on a shelf, this amounts to an invitation to treat rather than a valid offer capable of acceptance by the buyer when he/she presents the item to the seller2. In the case of Pharmaceutical Society o f Great Britain v. Boots Cash Chemists3 the court considered the question whether the price of the goods displayed in a chemist amounted to an offer made to the buyer upon which he accepts when he picks the goods from the shelves and put them in a shopping basket. The court held that if that was the case, a customer who picks the goods from the shelves cannot be able to return them. Instead the goods on the shelves were merely invitation to treat, and the sale agreement was complete upon the cashier accepting payment for the goods. The same rule applies in regard to advertisements, which are generally interpreted by the courts to be merely invitations to treat. In the case of Partridge v. Crittenden4 the defendant had placed advertisements on the classified section of magazines advertising the sale of bramble finches, whose sale had been prohibited by Section 6 of the Protection of Birds Act. He was found guilty under the Act and so he appealed the decision of the trial court. The A ppellate court, in quashing the appellant’s sentence, held that the advertisements were merely invitations to treat as opposed to an offer. This view was upheld by the court in Fisher v. Bell5 where the court held that the display of a flick knife in the display of a shop was merely an advertisement of the good, and thus an invitation to treat. From the foregoing, the brochure obtained by peter containing the car’s description and price was merely a form of advertisement for the car. It did not amount to an offer in any way, but was merely an invitation to treat for the company’s customers. However, there was a valid offer from Peter to the company’s sales department through his written letter to the company indicating his willingness to purchase a Corsican blue Vectra 2.0i vehicle. It is a universally accepted principle of law that acceptance must coincide fully with the terms of an offer. This means that if new terms are introduced to the contract, or r ather if new terms are purported to be introduced, acceptance of such new terms will be considered as a counter offer which results in the rejection of the offer. In the case of Hyde v Wrench6 the plaintiff offered the respondent to him his land for $1000 and he refused. In his reply, he stated that he would pay $950 and the respondent refused. The plaintiff later wrote to the respondent accepting to pay the initial sum but the respondent re

Corporate Governance Essay Example | Topics and Well Written Essays - 2000 words

Corporate Governance - Essay Example Such an argument is made with specific reference to the role that companies play in the social and economic lives of the society at large. The governance of corporations is also debatable at governmental level as per the political powers they may exercise and the world wide reach of the business in the globalized economy. Governments are taking keen interest in the governance matter of the companies not only to secure the national economy and shareholders rights but also to protect the global share of the country in the international markets. On the other hand, the finance providers including the individuals, banks, financial institutions and governments (in their role as investor) seek guarantee that their resources are being utilized in an efficient manner and create sufficient profits for them. This guarantee or assurance leads to the necessity of good corporate governance in place. In other words we can say that good corporate governance leads to increased shareholder trust and a ttracts potential investors due to the assurance that their resources will be secured (Macey 2008). Corporate governance can be defined in a number of ways. ... The main idea is the governance of corporations with an aim to increase stakeholder trust and confidence in the company’s operations, strategies, outputs and practices. Such a system of running businesses lead to the compliance with legal, constructive and social obligations which further enhances the credibility of the corporation in terms of gaining trust and assurance of the stakeholders (Monks & Minow 2004; Ali & Gregoriou 2006). Economic Reasons The corporations are governed by the directors through the managers and lower level staff, however, shareholders holds the directors accountable for the matters concerning the businesses. Corporate governance should be a matter of shareholders as their investments are at stake with the business’s reputation, operations and governance. Shareholders need an assurance of the security of their shareholdings. The returns that the business generates are eventually distributed among the shareholders. The governance of a corporatio n, hence, is of immense importance to the shareholders in terms of the economic benefits it may bring. Alternatively, any inappropriate action or decision taken by the directors held them accountable to the shareholders. Friedman (1962) suggests that the shareholder theory claims that corporation decisions should be made to enhance the value of shares to increase returns for the shareholders. Further, the agency relationship that exists between shareholders and directors may form the basis of good corporate governance practices, whereby, directors act as agents to the shareholders. In other words, the corporate governance codes and practices, as per the