Aspects of Contract and Negligence for Business - An Evaluation Assignment - 1

Aspects of Contract and Negligence for Business - An Evaluation - Assignment Example From the aforementioned case overview, it can be comprehended that the case is related to contract law. There are certain elements that are identified to be essential for the formulation of a valid contract. The four essential elements that are essential for a valid contract are offered along with acceptance, legal considerations, legal purpose and legal capacity. In this respect, a contract to be valid is required to have the aforementioned factors under consideration. Moreover, the elements of a contract are required to comply with the objective of ensuring that the contract is legally accepted (Marson, 2013). In relation to the case provided, it can be affirmed that Peter has not entered into a legally recognized valid contract, which implies that he is not liable to force the company in selling the product that has been advertised. Thus, Peter cannot force the company to provide the product at the price of ?1. It can also be affirmed relating to the case that the advertisement ma de by the company is just a mere invitation. According to the contract law, the advertisements that make by the companies in relation to a product or service are often related to the notion of ‘invitation to treat’. ‘Invitation to treat’ is identified as an expression along with a willingness to develop or enter into a contract with another individual. Moreover, the invitation should be made with appropriate terms as well as conditions with the objective of ensuring that the offer made by the offeror is accepted by an offeree. Contextually, an ‘invitation to treat’ is not identified as an offer but it is recognized as a preliminary procedure. In this regard, an ‘invitation to treat’ is not a necessary procedure for developing an agreement as the offeror making the ‘invitation to treat’ capable of forming a valid contract. ‘Invitation to treat’ is generally used by businesses to improve sales figures and at tract customers through advertisements and auctions among others (Marson, 2013)