QUESTION 1 (Engineering contracts and law)
Your company ( known as ASINU Pty Ltd) wants to enter into a contract with another company (known as 1073MNE Pty Ltd), which manufactures components that form part of the product that your company assembles. ASINU Pty Ltd offers 1073MNE Pty Ltd a price of R65,50 per component but 1073MNE Pty Ltd wants R55,50 per component.
Assess and decide whether there is a valid agreement between the two companies. (2)
Analyse the above scenario in terms of the requirements of an offer, assess and conclude whether the offer from ASINU Pty Ltd is valid or not. (5)
When does a contract come into force/existence between the two companies? (4)
Provide the six requirements for a contract to come into existence. (12)
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