Business law Essay Example | Topics and Well Written Essays - 1500 words - 10

Business law - Essay Example In this regard following issues can be framed: In legal sense Contract is defined as â€Å"an agreement enforceable at Law† where as every promise and every set of promises, forming the consideration for each other, is an agreement. And each promise is a combination of an offer by one person and acceptance of that offer by an other person. 2(The Indian Contract Act, 1872) The basic components of this agreement are: In case of deal with Slump Ltd through Mr. Boom offer was made by Mr. Boom to purchase the cars for use on basis of advice rendered by Mr. Smooth; a salesperson employed by Big Deal Ltd. Mr. Smooth accepted the offer by acting in accordance with the offer for price tag which forms the consideration of 20,000/- each. Similar is the case of deal with Ms. Market. Hence, in both case there were legal contracts between the parties on the ground that all the three components i.e. offer, acceptance and lawful consideration were present. A contract of sale of goods is a specific type of contract. I contract maybe a legal one but still not constitute a sale of goods contract. In order to do so a contract should correspond to Sec: 2(1) of the Sale of Goods Act 19793, which provides that, â€Å"A contract whereby the seller transfers or agree to transfer ownership in goods to the buyer in return for a money consideration called the price.† Both the deals under discussion in the current debate qualify to be a contract of sales of goods where ownerships was transferred to buyers for a price tog of 20,000/- and 5,000/- in case of slump Ltd and Mr. Market respectively. Cars purchased were legal consideration in this regard. Certain professions carry certain implied conditions attached to their products and services. However, law describes the implied conditions in general too. Section 14 of Sales of Goods Act, 1971, speaks about these implied conditions. This section defines that goods to be sold shall be of