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    Good evening,
    I'm an pg student from France, and I have this "legal exercise" to be solved. References detailed are required in relation of UK law.

    The exercise is as follows:

    "Two limited companies of equal financial strength have entered negotiations for the supply of services by one to the other. The customer company (A) wrote to the supplier company (B) at the outset of negotiations explaining that A would only be willing to deal with B on the terms of a formal contract in writing. Nevertheless, because the parties could not agree certain terms including provision for liquidated damages, arbitration clauses and delivery schedules, the formal contract (a draft of which was prepared and sent to B by A) was never completed. Meanwhile, and because of the urgent need for supplies to commence, B at the request of A has supplied about 70% of the proposed contract quota. A has paid one interim invoice (price was not an issue) supplied by B for about 20% of the quota. In making payment, A stated in writing that payment was made notwithstanding its position that no contract existed. The parties have now fallen out and the issue has arisen as to whether either A or B are able to assert a contractual relationship despite the absence of a formal written contract. Explain with reference to case law the factors which would determine whether or not a contract exists and what the alternative position would be if there has been no contract. Why would it matter?"

    Can you help me? Thanks
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    Hi there,

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    I am not too sure if the answer that I am going to give will be that helpful, as I have only just started my degree. However, from what I can see from the scenario and what law I believe can apply is as follows: they have indeed formed a bilateral contract, because they have exchanged services for one another. It doesn't matter if the contract was not written, because, you can accept an offer of a contact merely by fulfilling conditions of what the other party wants. This ruling was cited in the case of Carlill v Carbolic Smoke Ball Company, you will find the exact case which was cited for that rule in the ratio decidendi, in Carlill. Although, there were not any terms written, they had still contracted and had performed their services knowingly the other person would receive a certain amount of product, or whatever they were selling. There can also be said to have been a contract based on the doctrine of consideration, as they have both exchanged items of value. There is also the aspect that they have communicated as they both agreed on a price and at what rate that there were going to send and receive the products. Also, the fact that they have fallen out can be taken as they both had agreed to terminate their contract together. I hope that was helpful is some way, I am very sorry if not, as stated in the first sentence, I have only just started my degree, and I am only just getting to grips with the complexities on contractual law.
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    I am not too sure if the answer that I am going to give will be that helpful, as I have only just started my degree. However, from what I can see from the scenario and what law I believe can apply is as follows: they have indeed formed a bilateral contract, because they have exchanged services for one another. It doesn't matter if the contract was not written, because, you can accept an offer of a contact merely by fulfilling conditions of what the other party wants. This ruling was cited in the case of Carlill v Carbolic Smoke Ball Company, you will find the exact case which was cited for that rule in the ratio decidendi, in Carlill. Although, there were not any terms written, they had still contracted and had performed their services knowingly the other person would receive a certain amount of product, or whatever they were selling. There can also be said to have been a contract based on the doctrine of consideration, as they have both exchanged items of value. There is also the aspect that they have communicated as they both agreed on a price and at what rate that there were going to send and receive the products. Also, the fact that they have fallen out can be taken as they both had agreed to terminate their contract together. I hope that was helpful is some way, I am very sorry if not, as stated in the first sentence, I have only just started my degree, and I am only just getting to grips with the complexities on contractual law
 
 
 
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