Was the contract with an existin company or one which is starting up?? Was there any limitation clause in their contract?
Breach of contract causes a contact to be discharged. This is when one party performs defectively, differently from the agreement. This can be done by actual breach, when there is no performance, or through anticipatory breach, when they indicate in advance that they will not be performing as agreed. An offer is when an offeror intends to make legal relations with an offeree on a specific set of terms. The offeror is the party who initiates the offer and the offeree is the party the offer is addressed to’. ‘An offer can also be made to the public at large which means an offer can be addressed to a group of people invitation to treat is a transaction which involves a preliminary stage. This is where one party invites another party to make an offer. This can be done visually, such as a display, or verbally and finally by conduct (self service checkout).
The difference between an offer and invitation to treat is, accepting an offer usually creates a binding contract, whereas accepting an invitation to treat is in fact making an offer. bilateral contract is formed when each party takes on an obligation. Both parties are bound by the contract, and therefore can be sued for breach of contract. In bilateral contracts there may be more than two parties to a contract. unilateral contract is formed, where only one party assumes an obligation under the contract and the other party is not bound by the terms of the contract as illustrated by Carlill v Carbolic Smoke Ball Co (1983). Unilateral contracts are usually formed between estate agents and people wanting to sell their house.
Termination of an offer is when an offer comes to an end. This may be done through rejection which means the offer is terminated as soon as the offeree communicates the rejection. The offeree cannot afterwards insist on accepting the offer. An offer may also be terminated through creating a counter offer; this is where the offeree rejects the original offer by proposing a new offer. The original offer cannot be accepted afterwards unless rejuvenated by the offeror. An offer can also be terminated if death of the offeror or offeree occurs. An offer can be terminated if revoked, which means withdrawal of offer. Revocation must be communicated to the offeree before an offer can be revoked This doesn’t necessarily have to be communicated by the offeror it can be done by another dependable source.
An offeror, who promises to keep an offer open for a certain amount of time, may still revoke that offer at any given time before acceptance, unless the promise to keep it open is sustained by consideration from the opposite party. An offeror also cannot withdrawal an offer after acceptance. In order for there to be a legally binding contract between both parties, there must be acceptance from the offeree; this can be done verbally, in writing or even by conduct Acceptance of an offer must be unconditional to all the terms of the contract Acceptance must also be communicated to the offeror, before there is an agreement.