Free sample paper on Commercial Law

Be as it may, a valid contract requires that there is a binding offer and acceptance between the two parties entering into a contract (Miller, 2016). Edward has been serving Winston for Alzhaeimer’s disease without charging him for his medical services. Winston offered to pay back Edward for treating him over the years by offering him his office building once he dies. The reason is that Winston appreciated the services provided to him by Edward and had no heir to care for him. Edward never responded to Winston’s offer because he assumed that Winston did not own any office. However, Edward treated Winston for about seven years without charging his services.
There are five basic requirements that make a contract valid. In a commercial transaction, there should be an intention to create a legal relation between the two parties that would end up being a legally binding contract (Beatty & Samuelson, 2015). There should be an offer made by one of the parties involved in a contract followed by an unconditional acceptance from the other party. On the same note, there should be a consideration or a benefit transferred from one party to the other. One other important basic requirement that makes a contract valid is the capacity to make or enter into a contract (Miller, 2016).
In our case, Winston had an intention to create a legally binding contract between him and Edward for the healthcare services offered to him. He wanted to “pay” Edward for the services offered to him once he died. For the contract to be legally binding, an offer should be accepted by Edward (Offeree). Acceptance can be made in writing or orally (Beatty & Samuelson, 2015). On the same note, an acceptance can be made by conduct (acceptance by performance of contractual duties). Edward did not give an acceptance at the beginning but performed his contractual duties for seven years. But he eventually wrote a not stating that he accepted the offer and promised to provide the services that Winston need for the rest of his life.
However, the note did not reach Winston in time for him to approve the contract. Other requirements for a valid contract were also fulfilled. For instance, there was a consideration given to Edward for offering a service. Winston also had the capacity to enter into contract because he was over the age of 18 and was not mentally ill or intoxicated.
To sum up, the contract entered between Winston and Edward is legally binding because all the basic requirement for a valid contract was fulfilled. Despite the fact that Edward accepted the offer at the end of the contract, he provided the services required to fulfill his contractual duties to Winston. Therefore, Edward has an enforceable contract for the transfer of the office building.
References
Miller, R. L. (2016). Business Law Today, Comprehensive. Cengage learning.
Beatty, J. F., & Samuelson, S. S. (2015). Business Law and the Legal Environment. Nelson Education
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