...Did Tom offered a car to be sold in the advertisement? Tom, a car dealer placed an advertisement in a weekly motor sports magazine offering to sell a triumph (Tr6)for $10,000. RULE OF LAW: Rule of law for an Offer - is a statement of willingness of a contract on specified terms if accepted, it shall become a binding contract. Argument/Counter Argument: firstly, the advertisement was public to the eyes of citizens and it will attract interested outsiders, because of an invitation to treat. Whereas, Chris acceptance to the advertisement leads to a binding contract with the offeror, Tom. After he saw advertisement he immediately posted an acceptance letter with $8000 cash, alongside his office fax number. The offer was accepted when chris sent the letter to tom accepting the offer. Both parties communicated by fax, when the letter itself was sent to the offeror in which Tom read it and accepting the check. -According to the case of Carlill vs Carbolic Smokeball, the defendant manufactured a "Smokeball" to prevent flu and whoever used it over a specified period of time, each will receive $100. Carlill saw the advertisement, which states an invitation to treat. She used the Smokeball under her specified terms and still caught the flu. She went to collect her $100 benefit but the company refuses to pay her. When the claim was made they said there was no contract. It was held that an offer made to the world at larg, can become a contract with those who fulfilled the conditions...
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...digital platform of OLX. The OLX platform is an advertisement of goods to be sold, and descriptions of goods are set out there. For a binding contract to be formed, a definite offer must be followed by unequivocal acceptance . An offer is an expression of willingness to contract made with the intention that it shall become binding on the offeror as soon as it is accepted by the offeree. An invitation to treaty is where a party invites offers, which she is then free to accept or reject. In fisher v Bell Lord Parker CJ stated: ‘it is perfectly clear that according to the ordinary law of contract the display of an article with a price on it in a shop window is merely an invitation to treat. It is in no sense an offer for sale the acceptance of which constitutes a contract." Advertisements of goods for sale are normally interpreted as invitations to treat. In Patridge v Crittenden it was held, although it was an offence to offer for sale certain wild birds. The defendant had advertised in a periodical 'Quality Bramblefinch cocks, Bramblefinch hens, 25s each'. His conviction was quashed by the High Court. Lord Parker CJ stated that when one is dealing with advertisements and circulars, unless they indeed come from manufacturers, there is business sense in their being construed as invitations to treat and not offers for sale. On this basis it is reasonable to conclude that since an offer is an expression of willingness to contract made with the intention that it shall become binding...
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...Valid Contract Unit 3 IP Penelope Manzo BUSN310-11-2B-06: International Legal and Ethical Issues in Business American Intercontinental University James Lange Valid Contract A valid contract is an agreement that is backed-up by the courts. The contract is valid if it meets all four elements, which includes: an agreement, valuable consideration, competent parties, and legal purpose. The agreement must be a compromise from both parties, and the intention of all terms of the contract must be agreed upon from both parties. Before the contract can begin, both parties must make clear each intention, detailed, and both parties must have a clear understanding. The agreement must have an offer and an acceptance, which must include both parties. Next, a valuable consideration, in which each party are required to give up something of value or refrain from exercising a legal right in an agreement, such as the initial agreement. The third element, competent parties means all parties must possess the legal capacity to enter into the contract. This means the state jurisdiction must be met, all party members must be of legal age within the state, and must be of mental competence. Lastly, legal purpose, the contract must have a legal purpose and not contrary to the public policy. These four elements must be agreed upon and meet before a contract becomes valid. According to US Legal Definitions, Objective theory of contract is a “doctrine which states that a contract is not an...
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...Identification the legal issue/s After examining the facts and circumstances of the case, June did not breach the contractual terms and she is allowed to claim legislative protections in relation to Malcolm’s conduct. June answered to an advertisement written by Westwood University Library. She went for an interview where she met Malcolm, her immediate supervisor and get to know the company’s policy, rules and regulations. At this case, June is not considered as a staff of Westwood University because she did not sign a contract, including the social networking policy that was implemented a month before she entered the company. Relevant Legal Principles There is a distinct difference between and offer and an invitation to treat. Accepting an invitation does not come into legal bindings. An invitation to treat is a mere declaration of willingness to enter into negotiation. Advertisement usually forms no part of the employment contract and the discussion in interviews will not automatically become part of the contract. For a contract to be form, an offer must be made and stated as it was an offer, not through mode of job advertisement. Element of a contract includes offer and acceptance, intention to create legal relations, certainty, consideration, capacity and legality. It is stated in both State Legislation (Equal Opportunity Act 1984 (WA)) and federal legislations (e.g. Race Discrimination Act 1975 (Cth.)) prohibit discrimination in relation to employment. Various...
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...Q1. Distinguished between the term agreement and contract under the Contracts Act 1950 (Revised 1974) A contract is legally binding agreement reached between two parties, the terms of which the courts have the authority and obligation to enforce. An agreement is less formal creation of an obligation between two parties. An agreement usually lacks one or more of the essential elements that are required to be present in order to form a valid contract that will be considered legally enforceable by curt of law. Contract outline, the terms of the relationship that should be formed between two parties to the contract. An agreement also outlines the terms of relationship between the two. However, the difference is that the contract outline is far more rigid than that of a contract. The essential difference between an agreement and a contract is that usually an agreement will only modify a contract that is already in place but does not place an obligation on either one of the parties to provide consideration to the other party, which a contract requires. A contract can be involve in the exchange of promises between the parties to the contract, while an agreement may simply involve one party accepting the offer from another party. The approach taken by the Contracts Act 1950 (Revised 1974) to distinguish between agreement and a contract was noted by the Supreme Court in the case, Beca (Malaysia) Sdn Bhd v Tan Choong Kuang & Anor [1986] 2 MLJ 390. It was held that there...
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...Subject: Contract Law Section 1 (1) D (2) C (3) D (4) A (5) D (6) C (7) A (8) E (9) A (10) D (11) E (12) A (13) D (14) B (15) E Section 2 A | 5 | B | 8 | C | 7 | D | 9 | E | 2 | F | 10 | G | 6 | H | 1 | I | 3 | J | 4 | Section 3 Question 1 (1) Repudiation or anticipatory breach – An anticipatory breach of contract occurs when one of the parties unlawfully and unequivocally refuses to render performance of the contract. Basically repudiation is when either party owns performance of the contract and refuses to render it, not because he is entitled to do so. The repudiation can either be accepted or refused by the innocent party. Take note that if the innocent party does so ignore the repudiation, the legal position of both parties will remain unchanged. The innocent party must abide by his choice once it has been made. He will also lose the right to rescind if he refused to accept the repudiation or if the repudiation hasn’t been accepted within a reasonable time. To constitute an actual breach of contract the repudiation must be accepted and notice should be issued to the debtor, by the innocent party and will then amount to a rescission of the contract. The creditor may sue for the contracts rescission and damages if the contracts performance isn’t due yet. (2) Default of the debtor (mora debitoris) Mora debitoris – this is a form of breach of contract that takes...
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...The following essay deals with a hypothetical case in contract law, more specifically an offer and its acceptance. Its main purpose is to discuss and apply the principles in law, relevant to the topic, as well as advice the parties on their position and legal obligations. In the following case, the offer is being made by an advertisement in a local newspaper. The law states that advertisements in general are merely an invitation to treat and not an offer, the precedent being the Partridge v Crittenden case. An invitation to treat is an action, inviting the other parties to make an offer in order for a contract to be made. It treat cannot be accepted and therefore cannot directly be converted into a contract. The reasons for the decision advertisements to be considered to be invitations to treat are various – from allowing sellers to refuse to sell a wrongly labeled item, to protecting them from legal obligation resulting from a breach of contract when they fail to accommodate all needs due to a shortage in stock or failure in the supply chain. In certain situations, though, an advert can be elevated into an offer. In order for that to happen, the wording must be unambiguous and explicit, leaving no room for negotiation. This concept was first illustrated in the Lefkowitz v Great Minneapolis Surplus Store case. Even though it wasn’t an English case, it can still serve as an example in cases with similar circumstances due to the similarities in the legal systems of the UK and...
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...believe Britney’s claim against Eddie Bauer was correct. In advertisements or catalogs the prices in which are listed are referred to as an invitation to offer or an invitation to treat. This cannot be accepted into a contractually-binding manner because for an offer to be capable of becoming binding on acceptance it must be definite, clear, and final. An Invitation to treat not being an offer but an impressive preliminary to the offer is not capable of an acceptance which will result in a contract. The seller (Eddie Bauer) cannot guarantee it will have an unlimited supply of any good they have, therefore they cannot make a contract with everyone who sees the catalog or advertisement. In this situation, Britney accepted the offer Eddie Bauer had posted in a catalog dated in August. Britney placed her order Mid September so one could assume that the catalog prices had changed. From the information provided we cannot conclude when the sale was valid for, but Britney’s offer was never accepted by Eddie Bauer. Eddie Bauer returned her check due to the increase in price; therefore the offer was never accepted. 2. Eddie Bauer was not guilty of breach of contract. A breach of contract as defined by Wikipedia is, “a legal cause of action in which a binding agreement is not honored by one or more of the parties to the contract by non-performance with the other party’s performance.” There was no legally binding contract between Britney and Eddie Bauer. Catalogs display an invitation...
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...Angela Woodside came into our office with complaints that she was cheated out of a substantial amount of money from Doyle Contractors. The client states that on August 1, 2011, she entered into a contract with Doyle Contractors for the sale of 50 acres of land she inherited. The contract was for the sum of five hundred thousand dollars ($500,000.00). In accordance with the contract, Doyle Contractors was to make an initial down payment of $50,000, with the remaining amount to be paid in monthly installments over a period of ten years, beginning September 1, 2011. In addition to the land, Doyle Contractors was also to take ownership of Ms. Woodside’s tractor. Ms. Woodside received the first two monthly payments in the amount of $22,500 on April 1, 2012 and again on October 1, 2012, with the latter payment covering monthly payments through March 2013. On December 2, 2012, Ms. Woodside received notice from the Ohio Board of Agriculture that effective April 1, 2013 a portion of the land sold by Ms. Woodside to Doyle Contractors was to become an “Agricultural Preservation Area”, barring commercial development of any type for a period of five years. On December 15, 2012, Ms. Woodside received notice from Doyle Contractors that they intended to stop payments and abandon their contract because of the decision made by the Ohio board. Ms. Woodside states that she was not aware of Doyle’s intention of using the land to build on because they had never gotten any permits or showed...
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...Bait and Switch By Darryl Mitchell Professor Kenneth Pino Law, Ethics, and Corporate Governance – LEG 500 August 21, 2011 1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. The fact that Betty drove three hours in one-hundred degree heat has no bearing on whether or not the dealer must perform in accordance with the published advertisement. Betty chose to drive three hours based on the advertisement because she wanted the truck that was being advertised in the newspaper. According to the video, Betty contacted the dealership and spoke with a man, as she indicated, who said he would give her three thousand dollars firm for her trade in. Betty entered the dealership with the newspaper in hand that showed the advertisement for the truck priced at $11,399 and was determined to purchase the truck. Tony was determined to deter Betty from the advertised truck by describing other trucks that were available at a higher price. Tony's sales tactic is known as bait and switch advertising. According to Wikipedia, bait and switch advertising is a way to lure customers into a business by offering to sell a product or service that the advertiser does not intend or want to sell. Once the customer enters the business the salesperson tries to switch the customer from purchasing the advertised merchandise to purchasing something...
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...Carlill vs Carbolic smoke company INTRODUCTION Since a contract is generally referred to as a binding set of promises (agreements) with which courts will enforce, the main issue in Carlill and Carbolic Smoke Company is whether there was a binding contract between the parties or not. A contract requires notification of acceptance – Did Mrs Carlill notify Carbolic of the acceptance of the offer and what are the exceptions if any? Did Mrs Carlill provide consideration in exchange for the 100 pounds reward? The first point in this case is, whether the defendants' advertisement was an offer which, when accepted and its conditions performed, constituted a promise to pay, assuming there was good consideration to uphold that promise, or whether it was only a puff from which no promise could be implied, or a mere statement by the defendants of the confidence they entertained in the efficacy of their remedy. According to the law, an agreement establishes the first stage in the existence of as contract. The three main elements of a contractual formation I will endeavor to consider in a bid to ascertain the legality and validity of contract are the following: Offer, Acceptance and Consideration. I wish to advance the conviction that the case of Carlill vs Carbolic Smoke Company was a valid contract characterized by elements of a valid contract. OFFER The most important feature of a contract is that one party makes an offer for a bargain that another accepts. This can be called a 'concurrence...
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...required for the formation of a contract exist, the main legal issue is whether the element of agreement required for the formation of a contract can be established and whether Chickens Galore obliged to provide Christian and Brian each with a Mazda CX-9. Explain the rule(s) of law identified in step one with reference to relevant authority Both offer and acceptance should be included in the elements of an agreement in order to meet the requirements for the formation of a contract. An element of promissory of giving or doing something that has real value. In Placer Development Ltd v Commonwealth (1969) 121 CLR 353 case, the Commonwealth government said to pay a subsidy to companies that imported timber products into Australia but after some initial payments, they stopped. The issue is whether the subsidy load considered as a legal enforceable promise, which is later decided by the court that it is not. This is called illusory promises in which the amount is not yet to be stated (Lambiris 2012, 248). Advertisement is accounted as an offer in Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 case, where Carbolic Smoke Ball Company offered a reward of £100 to whom purchased their products and used them properly but nevertheless caught influenza. Carlill had bought the product, used it as instructed after seeing the advertisement and eventually caught influenza, and the company refused her when she tried to claim the reward, denying that an enforceable contract with Carlill had been created...
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...Assignment Task 1: The Advertisement - Term of contract, Misrepresentation or Mere Opinion? The initial issue is to classify the University of Kew’s advertisement that induced Brad to enter into a contract. If it constitutes a term of the contract, then contractual remedies would be awarded if there was a breach[1]. If it is a misrepresentation, then Brad would be provided with remedies for common law misrepresentation. However, if it is a mere statement of opinion or a prediction about the future, then it would have no legal consequence[2]. In JJJ Savage & Sons Pty Ltd v Blakney[3], the purchaser was denied damages, even when he was induced to enter into the contract by a non-promissory statement. Therefore for a statement to be classified as a term of contract, the parties must have intended it to be promissory in nature. Although the courts take into account a number of other factors to define the terms of contract[4], the advertisement is unlikely to be considered as a promise. Furthermore, had the advertisement not been included in the subsequent written contract, the parol evidence rule makes it even harder for Brad to pursue his right under contract. A misrepresentation is a false statement of fact, which allows Brad the right to rescind the contract[5]. Damages are also available if the university did not believe the truthfulness of the presentation[6]. However, the university’s liability regarding misrepresentation was excluded by the exclusion clause, which...
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...MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPOR INDIVIDUAL ASSIGNMENT Identify the essential elements required for there to be a valid contract Course : Diploma in Business Administration (International Business-DBID2 1501A) Module : Introduction to Business Law Name : FIN : Lecture : M. Lukshumayeh Due date: 18th June 2015 Table of Contents: 0 Introduction.......................................................................................1 1.1 what is a contract ？...................................................................1 1.2 The difference between an agreement and a contract ................1 1.3 The elements of a valid contract..........................................2 2.1 Offer...................................................................................................2 2.1.1 The definition of an offer .......................................................2 2.1.2 Two types of offer.................................................................2 2.1.3 Rules relating to offer ..........................................................3 2.1.4 An offer distinguished from an "invitation to treat".............3 2.2 Acceptance.......................................................................................3 2.2.1 The concept of acceptance ...................................................3 2.2.2 Rules relating to the acceptance...
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...BBA-2K11 (SECTION A) WHAT IS THE DIFFERENCE BETWEEN OFFER AND INVITATION TO TREAT? An offer is a statement of the terms which the client (the offeror) is prepared to be contractually bound. The offer must be complete, specific and capable of being accepted. It must include the fundamental terms of the agreement with the intention that no further negotiations are to take place. Client offer contractor the work and therefore the contractor must carry out the work under the client’s terms and conditions. It is possible to make a conditional offer. The effect of this is that an offer cannot be accepted if the condition has not been satisfied. For example the client requires the contractor to have a specific tool or machine before an offer can be made. Termination of offer: * The offer is withdrawn or revoked at any time prior to acceptance provided there has been communication between the client and the contractor; * The client making the offer dies; * Failure of a condition. An invitation to treat is different to an offer as it only invites the party to make an offer and it is not intended to be binding. The contractors are invited to bid on the job, by calculating the total work cost and to have the tenders submitted in a specified time. The main difference between this situation and an auction is that person submitted the tender, does so in ignorance of other’s bids because the final decision is up to the client. DIFFERENCE: An invitation to treat is when a...
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