Business Regulations and practices Essay Example | Topics and Well Written Essays - 250 words - 1

Business Regulations and practices - Essay Example The offeror, in this case Sullivan, may need to prove beyond any reasonable doubt that he was not in the right frame of mind when he made the offer. if he does, a court of law may render the contract invalid, otherwise it remains binding and Sullivan must sell his 40-acre tract of land to Ball for $60000 (Elliott et al 3). In contract laws, both making an offer by the offeror and acceptance or rejection of the offer by the offeree must be communicated to both parties. The offeree must receive the offer, and the offeror must receive a communication from the offeree notifying him/her or the acceptance or rejection of the offer. Chernek makes an offer to sell used farm equipment to Bollow for $10000. Bollow receives the offer, which is okay. Chernek dies before Bollow accepts the offer. Bollow accepts the offer after the offeror had died, but the Chernek is no longer living to be able to receive the acceptance. There is no valid contract in this case. Bollow must accept that there is no more Chernek to complete the contract by receiving his acceptance (Elliott et al 4). When the equipment were lost to an accidental fire disaster, and it is proven that the fire was indeed purely accidental, the contract becomes invalid because it even happened prior to Bollow sending her acceptance of the offer to Chernek. Since the equipment that would been the subject of a contract no longer exist, and they are burnt down before there is the acceptance bit of the deal, the contract is instantly rendered null and void even if Bollow sends the acceptance. Chernek died before the acceptance of the offer by Bollow. The general rule is that, if the offeror dies before the offeree accepts the contract, it remains terminated. It is evident acceptance was only communicated after Chernek’s death; hence the contract was terminated. What makes