We are now ready to take a look at the key elements of contract creation. And this section is especially important to give you this checklist. To get your hands in your pocket and keep an eye on contract negotiations in the future. And concretely, there are four items on the checklist. First, have you reached an agreement? Secondly, is there any reflection? Third, is the agreement legal? Finally, does the agreement have to be in writing? So let`s start with this first question. Answering this question widely can be common sense. Has any party made an offer? Did the other party accept the offer? For example, try your common sense in this scenario. By the way, this section in general will be a test of your analytical abilities. I will try to give you several case examples and see how your logical capabilities match those of the court making a decision. So here`s the scenario. This is based on a Chinese case.
Not exactly, I invented a few facts, but cowardly. So, on Mondays, a store offers to buy TVs from a manufacturer. TVs are delivered to the store. On Wednesday, the manufacturer accepts the offer, but informs the store that you need to pick up the TVs from our factory. On Friday, the store says we`re going to get the TVs at the factory. But after this series of notifications, the price of the TV decreases and the store no longer wants to go through the contract or agreement if it is a contract. So that`s my question to you. In fact, two questions, if you have paper and pencil at hand.
The first question is, is there a contract here, if the manufacturer sues the store? And secondly, if there is a contract, when was the contract concluded? Monday, Wednesday or Friday? So, please, write your answer. Again, I do not think you have to have a great knowledge of the law to answer a problem like this. I think we can use common sense. The answer is yes, there is a contract. There was an offer from the store. There has been a decrease by the manufacturer. But then, a slightly more difficult question is when the acceptance took place. Wednesday or Friday? And the answer to that question is Friday because. The manufacturer`s statement on Wednesday was not a hypothesis, as it changed the terms of the offer. So legally, what the manufacturer calls a hypothesis is really a counter-offer back to the store. On the other hand, the manufacturer defeated the initial offer.
And now it`s up to the store to accept what the store has done. Thus, the manufacturer will make wednesday the exact analysis, accept business on Friday. Mandatory contract. Today, this principle of counter-offer is particularly important for any negotiator. If the other side makes you an offer, you should remember that if you accept the offer, but add additional conditions. Although there are exceptions, as with any legal rule. However, if you add additional terms, you have killed the initial offer and can no longer accept it afterwards….