Contract Law Essay Example | Topics and Well Written Essays - 2250 words - 1

Contract Law - Essay Example These elements are consideration, subject matter, and time of performance. While making an offer, an offeree may reply to offer made positively with some additions or modifications. Such additions or modifications affect the formation, time, and place of contract under both English and UAE laws. In respect to English and UAE laws, the following is a discussion on effects of additions or modifications made by offeree in response to an offer. Theories for Validity of Contracts Apart from the essential elements and terms of a contract determining validity of a contract, four other theories attempt to explain when, where, and how validity is attainable. The first theory proposes that a contract becomes valid when and where the negotiations begin that is, when and/or where declarations are made. For instance, in the case of Applegate v Moss [1971] 1 QB 406 the court held that the contract was valid when the negotiations started between the two parties. From the UAE Civil Code, a contract becomes valid upon receipt and realization of the offeree’s acceptance . The other theory explaining validity of a contract majors on when and where the offer and acceptance is received. Receiving of the offer and acceptance determines that both parties are comfortable with terms and conditions of the contract. Moreover, whenever a contract arises then it becomes valid. Lastly, the other theory that confirms validity of a contract is when and where the offeree becomes aware of existence of the offer. ... Additions and Modifications by Offeree Any change made by an offeree in the context of responding to an offer amounts to additions and modifications of a contract. Modifications and/or additions may be material or immaterial but they all affect formation, time, and place of the contract in all laws but in this case, special interest is on English and UAE laws. In a contract, an offer refers to a manifestation of an intention by once of the contracting parties, which leads to a binding agreement in the event that it is accepted. In the case of Moran v University College Salford (No. 2) [1994] ELR 1872 where the court held that, the University had made an offer, which was accepted by the plaintiff. Another case was OT Africa Line Ltd v Vickers Plc [1996] 1 All ER 325 3where there was a mistake in making of the offer. For instance, in the case of Barry and Davies [1962]1 2000[HC]4 the court held that there was a collateral contract between auctioneer and highest bidder since upon the of fer made by the auctioneer, the highest bidder accepted the bid. Nonetheless, many offerees in some cases accept offer upon making some modifications or adding other aspects of the contract. From the UAE laws, an offer makes a contract to be valid through three basic ways. First, when an acceptance follows the offer made5. The other way is when an offer of specific goods and services has along with it indication of remission of consideration as required in order to validate contract6. Lastly, the last offer is valid especially when there is a repetition of the offer prior to acceptance of previously made offer7. Additions and/or modifications may be valid or invalid depending on various factors. It is important to note that