BUL2131 Commercial Law

Legal issues and possible outcomes in case Red-Holdings Co. v. Bluelands Co.

In the given case the outcome for the case is that legally Blue-lands Co. is not liable to sell his property to Red-Holdings CEO. There are many reasons such as:

Lack of proper channel- Communication is the basis of any contract. Without them there is no contract. Communication must be correct and there should be no uncertainty. That is, the whole thing needs to be very clear. Offers and acceptances cannot exist silently, so they must be communicated properly. Otherwise, the contract will be invalid. Knowledge of the proposal is required. To accept a proposal, the proposal must be communicated or the approver must be aware of the proposal. Here both CEO met for an informal meeting that was not linked to sale of particular property of a company that makes this offer invalid from initial level.

Counter offer A counter offer is a response to the first offer. Opposite offers indicate that the original offer has been rejected and a new offer has been made in its place. Counter offers offer the original offer provider three options: accept, reject, or make another offer. In most cases, counter offers are conditional. If the seller gets a low bid, they can compete at a reasonable price. Buyers can choose to accept the offer or disagree it again. The seller has the option to decline the offer (Contract Counsel, 2022). The person who receives the counter offer is not obliged to accept it.

Incapacity of parties

Ability is a requirement for the party to be a legal drinking age, free of mental illness, and not drunk. In fact, contracts can be revoked in several ways. One of the parties was forced to conclude a contract. Contracts can be revoked in various ways. If the parties are not legally competent, they cannot legally enter into a contract. This may mean entering into a contract while one of the parties is incapacitated or unable to make an informed decision. When a drunk person signs a contract, the contract can be enforceable (held to the maximum extent of the law) or invalidated by the drunk person. The court will consider two criteria that must be met in order to invalidate the contract. The addiction was so severe that the person who signed the contract died. The opponent was aware of the addiction at this point.  In this case, a revocable contract is one in which the drunken party has the right to terminate the contract under certain conditions. Neither party may be given alcohol or drugs to induce or persuade them to enter into a contract. It should be noted that even if a drunk person can break the contract, the parties can re-contract it when they are calm (Laranson, 2022).

Here Red-Holdings Co. cannot demand Bluelands Co to honour their words as there was no legal contract between them hence there is no possibility to raise any claim against  Bluelands Co.

References

Contract Counsel. (2022). Purchase Contract: Key Terms To Know in Real Estate (2022). Retrieved 16 February 2022, from https://www.contractscounsel.com/t/us/purchase-contract

Laranson, A. (2022). Contract Law | ExpertLaw. Retrieved 16 February 2022.

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