Case Analysis: eBay is one of the biggest online auctioning companies in the world. Buyers and sellers of all types are able to hop online, put up something for sale, and sell it! Basically, the way it works is that you find something you want to bid on, place a bid on it, and wait to see if your bid wins. If it does, you send your information to the seller, and in return, he or she sends you your goods.
Is an eBay auction a legally-binding contract? In at least two pages in length, consider whether a bid placed in an online auction on eBay is legally binding and, therefore, enforceable. Explain your reasoning using the rules of contract analysis that you have learned thus far, including valid offer, valid acceptance, and the various forms of consideration. Include an introduction in your paper.
One source is required for your paper. Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.
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Introduction
A contract is a fundamental part of any business dealing whether online or not. Contracts are relationships between two or more business entities that are legally binding and enforceable by law such that in case of any breach of contract, the injured entity can seek damages legally. Additionally, the party that breaches the contract must compensate the injured party in a way that makes them whole again. However, the terms of any contract are only binding to the parties involved and not on anyone else. Moreover, there exist external legal restrictions by the government that limits the creation of some contracts that may lead to a violation of various laws eg minimum wage laws. Furthermore, there are other internal limitations to contracts such as non-competing clauses that ensure one would not work in a similar capacity for a certain amount of time and location as their current contract stipulations.
E-bay auction involves placing items online with a starting price where interested buyers place their bids after which you sell to the highest bidder. An e-bay auction can run for several days whereby the time-sensitive items have fewer days. In most categories on eBay, when you bid for an item it’s considered binding since you have agreed to complete the purchase. However, several categories are considered non-binding where bidding is seen as expressing interest to buy and not as a formal contract, for example in real estates and motor vehicles. In this respect, vehicles and properties are usually expensive, and selling them is subject to a variety of laws and usually, the parties involved must exchange additional information before completing any transaction.
Creation of Contracts
Contract creation involves agreements between parties where one party makes an offer that is accepted by the other party.
Offer
An offer is an expression of showing a willingness to be in contract with a party with specified binding terms that act as terms of a contract for the parties involved. An offer can be expressed by words or conduct to either a single person or a group. Additionally, an offer is different from an invitation to treat which is usually not binding such as advertisements.
Acceptance
Acceptance is an expression of acceptance to the terms of the offer by the recipient of the offer thereby acknowledging to be bound by the terms of the offer. For a contract to be created, all the terms of the offer must be accepted. Acceptance of the offer may be by conduct which doesn’t become legal until it’s been acknowledged by the recipient ,…………………………………………………………………………………………………………………………………………………………………………………………………………………………………,………………………………………………………………………………………………………………………………………………………………………………………………………………………………… eBay is one of the biggest online auctioning companies in the world
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