Business Law Essay Example | Topics and Well Written Essays - 750 words - 2

Business Law - Essay Example Such offer of Smunt signifies a legal commitment on his part, a proposal which he has extended to Roginsky, which assumes eventual acceptance on the part of Roginsky. For an offer to be considered as accepted, â€Å"a valid act of acceptance must be made by the offeree† (Gillies 149). This was further clarified in the case of Carlill v. Carbolic Smoke Ball Co., (1893) 1 QB 256. â€Å"The first requisite of a contract is that both parties have reached an agreement. The three essential requisites of to the creation of a contract are: agreement, contractual intention and consideration† (Oughton and Davis 21). Here, all the essential requisites are present. Therefore, there was a valid contract entered by both parties, giving rise to the cause of action by Roginsky against Smunt for breach of contract. â€Å"An offer may be revoked before such offer is accepted by the offeree. If it is revoked after a valid acceptance has already taken place on the part of the offeree, suc h revocation is ineffective for the contract has already been perfected before the purported act of revocation (Gillies 150).† The revocation must also be communicated â€Å"directly or indirectly to the offeree to make a valid revocation. If revocation is sent through mail, the revocation shall not take effect unless it is received by the other party† (Gillies 150). ... fferee rejects the offer through a letter, but before such letter indicating rejection is received by the offeror, a second letter is sent indicating the acceptance of the offer, and the second letter is received first. In this instance, the mailbox rule is disregarded† (Ryan 43). On the other hand, the modern view is set forth in the â€Å"Restatement (Second) of Contracts and the Uniform Commercial Code (UCC) rejects the mailbox rule. Under UCC 2-206, acceptance may be made in a reasonable manner unless the offer limits the manner of acceptance in a particular means† (Ryan 45). 2. As a general rule, employment contracts preferably should be in writing and signed by both parties, the employer and the employee. â€Å"Under the Statute of Frauds, a purely oral contract can be voided if there if it cannot be possibly be performed in one year† (Harper 60). The rationale behind this requisite is â€Å"to reduce frauds by requiring that certain contracts be in writing and signed by the party alleged to be in default. Absence of the written form makes the contract unenforceable† (Harper 60). However, there are exceptions to the rule, â€Å"where an executive has performed all the duties he has contracted for but has not been paid. If this exception would not be made, the Statute of Frauds will defeat its purpose and would operate to facilitate, rather than prevent fraud, since the unscrupulous employer could rely on it to refuse payment, after having benefitted from the work performed in good faith by an executive† (Harper 60). In this case, Wombat relied on the oral employment contract with Tony’s Toy Company and quit his job, sold his house and moved his family to another state for the new job, only to find out after one month that he is being terminated for the position.