Commercial Law Essay Example | Topics and Well Written Essays - 1500 words - 2

Commercial Law - Essay Example Whenever there is a bridge in the contract, the law provides a remedy for the damages or monetary compensation. Section 14 of the Sales of Good Act 1979 of the UK governs the formation of commercial contracts involving the buying and selling of goods. The act deals with implied terms and presumptions which reflect commercial expectations in the formed contract. It also outlines few compulsory legal rules to be followed in the formation of commercial contracts. Section 14 of the Act specifies the terms of satisfactory quality of goods and the fitness for purpose of goods under sale. According to the section the seller is obligated to offer goods that are fit for the purpose for which they are being sold especially so if the buyer will reasonably depend on the seller’s expertise. According to Austen-Baker (a 125) an offer is made by one party called the offeror. Through the offer, they express their willingness to be bound to the other party. This can be expressed by the offeror through direct conduct, writing or orally. This is accepted by the other party called the offeree. It is only until the offeree communicates an acceptance to the offeror that the contract can become valid. This can be by action, writing or orally. Offers made orally give room for negotiations from the offeree. Alterations can be made or counter offers suitable to the offeree can be given after which a solid binding agreement is made. Atiyah (155) explains that the acceptance must indicate an agreement by the offeree to the terms used in the offer. This means there is already concurrence of wills between the two or more parties. It is better if the acceptance is put into a written form as future evidence against any breaches. This is because existence of agreement in the minds alone cannot be used by courts as evidence incase of breach of contract. The contract will be considered valid when writing, registration and signing has been completed by