Business and Law
Semester B, 2010/11

Course Work Assignment |

Name of lecturer: Vikki

Student Name: Yeung Chun Ning Jude
Student Number: 51825102
Seminar group: S01
Program: BBA QFRM

Deadline of the assignment: 11 March 2011
Submission Date: 11 March 2011


Tom’s promise can only be enforced when a valid contract is formed. A valid contract requires (1) an agreement; (2) an intention to create legal relations; and (3) consideration. With the presence of offer and acceptance between Tom and Jerry, the remaining issues are whether: (1) there is a counter-offer (2) consideration exists and both parties are intended to be legally bound (3) there is a concluded contract


Both offer and acceptance can be made in writing, by verb or by conduct. Once the acceptance is communicated with the offeror, the contract is completed. A counter offer is to give a new offer, which has been modified, to the original offeror. A counter offer makes his original offer lapse. In Hyde v Wrench, the defendant offered a farm for £1000. The plaintiff offered to buy at a lower price, but was rejected by the defendant. The court held that the plaintiff has revoked the offer by giving a counter-offer.

In this case, Tom made an offer to Jerry orally, requesting Jerry to do the assignment for him in exchange for taking Jerry for a movie and a good dinner. Jerry replied by giving a counter offer. Instead of watching a movie, Jerry preferred to have Tom’s favorite skates. This offer was accepted by Tom. Hence, Jerry could not enforce Tom’s promise to take him for a movie as the offer was revoked. However, we still have to discuss whether the second promise is enforceable.

In a legally binding contract, both parties have an exchange of promises which known as considerations. Each party must suffer a burden to give a benefit to the other party. Otherwise, it is just an agreement....