Construction Contracts Law Case Study Example | Topics and Well Written Essays - 2000 words

Construction Contracts Law - Case Study Example A proposal, when accepted, becomes a promise" Thus, when there is a proposal from one side and the acceptance of that proposal by the other side, it results in a promise. This promise from the two parties to one another is known as an agreement. Also all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object and are not hereby expressly declared to be void. These basic rules of offer, acceptance and invitation to treat etc are amply illustrated in the cases 'Pharmaceutical Society of Great Britain v. Boots Cash Chemicals Ltd.(1952)2 Q.B.795)' , 'Felthouse v. Bindley(1862)6L.T.157)' and also in 'Fisher v. Bell (1961) 1Q.B. 394)'. The intention to create a legal relationship is demonstrated by 'Rose and Frank Co. v. Crompton & Bros. Ltd.(1925)A.C.445)', Balfour v. Balfour(1919)2K.B.571)', By 'Jones v. Padavatton(1969)All E.R. 616)', and also through 'Merrit v. Merrit(1970)2All E.R.760)' As per the facts of the case it was a contract about the construction of a new warehouse incorporating high quality offices and the client wanted tight financial control. ... In nut shell the essentials needed for a valid contract, therefore, are as under : An agreement between the two parties. An agreement is the result of a proposal or an offer by one party followed by its acceptance by the other. Agreement should be between the parties who are competent to contract. There should be a lawful consideration and lawful object in respect of that agreement. There should be free consent of the parties, when they enter in to the agreement. The agreement must not be one, which has been expressly declared to be void. A proposal, when accepted, results in an agreement. It is only after the acceptance of the proposal that a contract between the two parties can arise. After the offer has been accepted, it becomes a promise which, if other conditions of a valid contract are satisfied, binds both the parties to the promise. These basic rules of offer, acceptance and invitation to treat etc are amply illustrated in the cases 'Pharmaceutical Society of Great Britain v. Boots Cash Chemicals Ltd.(1952)2 Q.B.795)' , 'Felthouse v. Bindley(1862)6L.T.157)' and also in 'Fisher v. Bell (1961) 1Q.B. 394)'. The intention to create a legal relationship is demonstrated by 'Rose and Frank Co. v. Crompton & Bros. Ltd.(1925)A.C.445)', Balfour v. Balfour(1919)2K.B.571)', By 'Jones v. Padavatton(1969)All E.R. 616)', and also through 'Merrit v. Merrit(1970)2All E.R.760)' As per the facts of the case it was a contract about the construction of a new warehouse incorporating high quality offices and the client wanted tight financial control. There is no express condition laid down as to 'Time as the essence of the Contract' But through the wording of the contract it is quite clear that the client has laid down two conditions, first the quality of workmanship should