A contract is an arrangement Coursework Example

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Contract
A contract is an arrangement between two or more parties. All the parties to the contract are obligated to perform as per the agreement. In law, the agreement is enforceable upon default of either party (David et al 32). Failure to fulfill the obligations set for the parties, lead to the breach of contract making it voidable at the option of the injured party.
However, certain requirements must be met to make a contract legally binding. First, the parties to the contract must be of the age of majority. Second, there must be consent from the parties to the contract (David et al 32). Third, there must be a consideration given by one party to the other to fulfill a given task. Finally, there must be an offer from one party and an acceptance of the other party.
It is important to differentiate between an offer, an invitation to treat and a mere joke. An offer constitutes an intent to perform a certain act in exchange for another service (David et al 32). It can either be implied or express. Further, it can be made to an individual or to a group of people.
In the case of Pepsi company Vs Leonard, the offer was previously made to the whole world through the advertisement. Any person who reacted to the advertisement had a right to sue for damages in case the company failed to meet their promise. Leonard went an extra mile to call the company as an individual. In this case, he made an offer to the company who agreed expressly by giving the terms of the contract.

The agreement between the two parties constituted a contract since Leonard met the terms of the company. Pepsi is, therefore, liable to pay for damages or deliver the Harrier Jet to Leonard.

Works Cited
David P. Twomey, Marianne M. Jennings. Anderson’s Business Law and the Legal Environment, Comprehensive Volume, 22e: Cengage Learning, 2013. Print.