BUSINESS LAW 1

Business law

Student’ Name
Student’s ID
Institution Affiliated
Course
Section
Date
BUSINESS LAW 2

Case One
1. Revocation occurs when the offer is revoked. Phiby’s revocation is not effective since the
communication of its acceptance is complete. An offer can only be revoked when the proposer
has communicated before acceptance. The conditions considered are the issue of notice ( Djigsa
w, 2016). The proposer should issue a notice before acceptance and Phiby failed to do so. Due to
insanity of the proposer, if the acceptor is aware of mental status of the offeror before acceptance
then offer can be revoked. In case of counter offer which occurs if the offeror has a condition for
giving out the offer. Phiby did not make any counter offer thus cannot revoke the offer. When
the offer is not accepted in mode prescribed. Pen accepted the offer through an e-mail which was
the mode by which Phiby sent it. An offer can be revoked if the acceptor failed to fulfil a certain
condition. However, Pen fulfilled all conditions in the offer thus Phiby revocation is ineffective.
If death of the offeror occurs and the acceptor is made aware before acceptance, the contract is
revoked. Thus since Phiby is alive and acceptance is done, the offer cannot be revoked.
2. A legal binding occurs when there terms and conditions to be fulfilled. The contract between
the parties also contains legal terms. Therefore, both Pen and Phiby have a legally binding
agreement. This is clear since the document pertains legal terms and conditions about the
summer house that Pen agreed to. In addition Pen accepted the payment terms made by Phiby
thus the offer is binding. This contract is enforceable by law and Pen can sue Phiby for breach of
contract.

Case Two
1. Binding contract is when both parties accept the terms made in an offer. Dan and Ben do
not have a binding contract since this is a conditional acceptance which is not acceptance
by law. The offer is accepted when the offeror agrees to the conditions of the offeree.
However, Dan does not respond to Ben after the counter offer. The acceptance standards
is when both parties agree to the contract without any alteration ( Brahmi, 2017). Ben
introduced a new offer to the contract in order for acceptance to occur. It should be
accepted by mode prescribed. Ben failed to do so since Dan made the offer through a
letter and Ben replied by mail.
BUSINESS LAW 3

References
Brahmi Zouaoui, N. (2017). Offer, Acceptance and Defects in Consent. Int'l Bus. LJ, 583.

Djigsa, W. (2016). Withdrawal and Revocation of Offer and Acceptance: A Comparative Study of the
CISG, the Chinese Contract Law, the Unidroit Principles and the Ethiopian Contract Law. Available at
SSRN 2819915.