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Law Contract Case Study

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Submitted By xuanvien
Words 986
Pages 4
Case 1
Issue
This problem addresses the issue of agreement, whether there is a valid contract or the offer may be terminated. In order to the contract being valid and enforceable, there is a need for the conduct of an offer and an acceptance.
Rule
For an offer to be valid, it contains some rules, including lapse of time. When an offer is made, it does not last forever. An offer stated to open for a specific period, lapse if the there is no acceptance within that time. If there is no set time for acceptance is stipulated in the offer, the implication of lapse will be exercised after a reasonable time, depending on the facts and circumstances in each case. (see Ballas v Theophilos (No2) (1957) 98 CLR 193; [1957] HAC 90). If the acceptance is come after the offer has lapsed, the acceptance will not be valid.
Application
In this case, Chan offers to sell his car to David and David asked for some time to think about it. It can be noticed here that David gets back to Chan after long time thinking, which caused the offer lapse. Moreover, there is no binding options about specific period is stipulated to keep the offer open for offeree. The acceptance is not valid because the offer has been terminated due to the lapse of time.
Conclusion
There is no legally binding contract which has been formed between Chan and David.

Case 2
Issue
This problem indicates the issue about breach of contract. However, breach of contract only occurs when a legal contract has been formed. Therefore, a second issue is also addressed, whether a contract is valid. In terms of providing a valid contract, agreement which is a main element in any contract must have. A valid contract must contain an offer and an acceptance. If there is a contract validly, a party who breaches a contract will be sued and liable for any damages that may have caused to the innocent party.
Rule
In order to make an offer

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