Aspects of contract and negligence for business Assignment - 1

Aspects of contract and negligence for business - Assignment Example Chen-Wishart (2012), explains that the process of making and an offer and its acceptance follows the â€Å"mirror image† rule. This implies that the other party accepts the terms of the contract just as stipulated in the offer. Consideration is yet another element of a contract that refers to a substance of value the two parties promise to exchange in the course of the transaction. The consideration validates the existence of a contract. Also known as, the â€Å"meeting of the minds† mutuality refers to the consensus the two parties must have about the terms of the contract. Before creating a legally binding agreement, the two parties must understand and agree to the unique terms of the contract. The terms are vital aspects of a contract since they influence the entire process of undertaking the activity. The two parties must, therefore, understand the terms of the offer. At the acceptance stage, the second party promises to undertake the activity as stipulated in the terms. The offering party, on the other hand, promises not to change the original terms since the contract laws bar changing such terms unless the two parties agree to. This makes mutuality an important feature in contracts (Frey & Frey 2001). The terms that Joe and Dilon set for their contract have some aspects of ambiguity. As explained earlier, in the creation of a contract the terms must always follow the mirror image rule. The mirror image rule dictates that the offer and the acceptance must never vary the terms of the contract. In the case, Dilon’s terms dictate that Joe must sell the products at the original quoted price. After filling the form, which indicated his acceptance of the offer, Joe provides his terms in which he indicates that the prices may increase. Such is a bargain, and the terms of the contract between the two parties are ambiguous. Despite the ambiguity between Joe and Dilon, the two form a legally binding contract. Joe must make the running