Lecture 1 Definition "A contract is an agreement giving rise to obligations which are enforced or recognised by law." An agreement is insufficient. Are the parties serious about it - intention? Is there consideration involved? It must be something that is recognized by the law. Otherwise it cannot get any compensation. Functions of Contract Law It defines the obligations of the contractual parties - price, when and where to deliver, conditions, etc. Contract law protects rights
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invitation to treat is only an offer to receive an offer, i.e. it is an invitation to another to make an offer. Examples of invitations to treat are advertisements and displays in shop windows. A case in point is Pharmaceutical Society of Great Britain v Boots Cash Chemist Ltd (1953). In this case the defendants were charged with selling certain poisons in contravention of the Pharmacy and Poisons Act 1933. The question was whether a sale had occurred when a customer in a self-service shop selected
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advertisement in the Hong Kong Daily, which is about selling his prestigious apartment. The advertisement of Alex is an offer, not an invitation to treat. In Partridge v Crittenden [1968] , the newspaper advertisement without details was held to be an invitation to treat, which is not an offer. However under the case of Carlill v Carbolic Smoke Ball Co [1983], an advertisement may be an offer if it is very clear. From the advertisement of Alex, he posted a detailed advertisement on TV, which include the
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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 is a distinction between an agreement and a contract. The word ‘contract’ has at times been loosely used in the past. We are used to the English common law which does not make the
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www.ccsenet.org/jpl Journal of Politics and Law Vol. 4, No. 1; March 2011 Clarification of Rules of Acceptance in Making Business Contracts Dr. Md. Abdul Jalil Associate Professor of Law Department of Business Administration, Faculty of Economics and Management International Islamic University Malaysia (IIUM) E-mail: abduljalil@iiu.edu.my, abd_jalil2@yahoo.com Abstract Business firms and Business corporations enter into thousands of contracts everyday. Making a formal and written contract
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Assignment 1 – M1 Analyse the impact of the requirements for a valid contract in a given situation Aled, aged 19, decided he wanted to set up in business. He was planning to buy and sell items both on the internet and by mail order. Aled agreed with his father, Brian, that they would convert a spare room in the family home into a ‘business centre’ with telephone lines, internet and fax facilities and a selection of office furniture and equipment. Aled then entered into the following agreements.
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an agreement which legally binds the parties to it. There are five essentials which must first exist in order to create a valid and legally enforceable simple contract; (i) Offer (ii) Acceptance (iii) Consideration (iv) Capacity (v) Privity (vi) Intent to create legal relation Offer Anoffer is a definite undertaking or promise made with the intention that it shall become binding on the person making it as soon as it is accepted by the person to whom it is addressed. Offers
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precise meaning than that the regarded itself as offering the best deal.[1] “The advertisement invites members of the public to come and test drives the new model” means the advertisement was an offer to anyone who had watched it. In Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 AT 261-2K Lindley LJ [2]said: Advertisement offering rewards are offers to anybody who performs the conditions accepts the offer. In point of law this advertisement is an offer to pay to anybody who will perform these
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understandings and intentions between the contracting parties are needed to legally binding a contract. However, there is no intention to create legal relations when it comes to cases that involve with social, domestic and family arrangements. Balfour v Balfour 1919: “The defendant (the husband) promised to pay his wife £30 a month as health maintenance when she could not return to Ceylon with him under the doctor’s advice. When their marriage ended in divorce, the wife sued for the monthly allowance
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not concern themselves with its adequacy and the relative values exchanged. Therefore, it can be argued that if a party does, or promises to do something, which he is already bound to do, he then provides no consideration for the promise. In Stilk v Myrick, two sailors deserted during a voyage, the master promising to apportion the deserters’ wages amongst the remaining sailors if they would sail the ship home safely. The courts held that the claim for additional wages must fail since no consideration
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