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Feb 02, 2024

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A. The contract is referred to as a legal contractual relationship binding two parties. Common law has listed three basic requirements to be fulfilled for the formulation of the contract (Allen & Overy, 2023). For an enforceable contract certain requirements needs to be followed such as offer and acceptance, and an intention to legally bind a person will succeed after valid consideration. Offer refers to the willingness to buy or sell any specific good. In the case of G Percy Trentham Ltd v. Archital Luxfer Ltd, (1993) the court stated that there must be a clear intention by the parties to form legal relations and for that there must be a clear follow-up of the offer from one party to another. However, an offer is different from an invitation to treat. In the case of Partridge v. Crittenden, (1968) it was held that an advertisement is a form of an invitation to treat rather than an offer to purchase. Similarly, in the landmark judgment of Carlill v. Carbolic Smoke Ball Company, (1893) it was held that any advertisement advertising extra benefits to the consumers is a part of selling techniques that constitute an invitation to treat rather than an offer to buy.

B. Discharge of contract is referred to as the end of any legal contractual relationship. Discharge of the contract terminates all the rights and obligations granted to another person under the contract. Discharge can take place due to fulfillment of the contract conditions, refusal to fulfill the contract, or any breach of the condition. Discharge can be of many types such as discharge of contract by performance, by agreement, by frustration, and by breach of contract (Lawble, 2023). Discharge by performance refers to the termination of the contract after the duties assigned are fulfilled and there is no obligation left on the other party.

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