The paper "Managing Contracts and Risk" is a brilliant example of an assignment on management. The first requirement for a valid contract is an agreement between two parties (Educate-Em Business School Pty Ltd and, John Dory and Anne Chovie). The agreement is usually based on the rule of an offer and acceptance (Latimer 2011, p. 359). This may be expressed as a clear indication (offer) by the ‘ offeror’ (Educate-Em Business School Pty Ltd) of their willingness to be bound by specific terms. This is accompanied by a communication from the second party ‘ offeree’ (John Dory and Anne Chovie) to the ‘ offeror’ of a complete agreement to the offer (acceptance).
In our case, the Company has given an offer to the Contractor to provide it with a strategic business plan. An offer is an indication of an intention by ‘ offeror’ to become bound without any further discussion and negotiation, on the acceptance of the agreed terms (Latimer 2011, p. 359). An offer also differs from ‘ mere puff. ’ It is possible to make an offer to become liable to anybody who accepts such an offer before it is withdrawn.
Nevertheless, an offer cannot be effective if it has not been communicated by the ‘ offeror’ or a third party acting with the consent and authority of the ‘ offeror. ’ Acceptance of an offer leading to a legally binding contract needs to take place with sufficient knowledge of the existence of the offer and intention to accept the offer. The Contractor (John Dory and Anne Chovie) has accepted the offer by the Company (Educate-Em Business School Pty Ltd) to be provided with services, which include a strategic business plan.
While it is not necessary for acceptance to be express and as it could be implied from behavior, it must correspond to the offer, be unequivocal, and must be communicated to ‘ offeror’ (Carter, Peden, and Tolhurst 2007 p. 104). Where there is a purported acceptance that proposes different or additional terms, it will be deemed an ineffective acceptance, unless the differences solely favor the offeror.
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