suppose A makes an offer to B on January 1; A then decides to revoke the offer on January 2, and puts a letter in the mail to B revoking the offer; however, B puts a letter accepting the offer in the mail on January 3, and does not receive A’s revokation letter until January 4. Because B sent his acceptance before receiving A’s revocation, the mailbox rule dictates that B’s acceptance is effective. A will therefore be bound to the contract, and can no longer revoke the offer. Suppose, on the
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advertisement in the general there can either be an invitation to treat or offer it is depends on the intention of the parties in each case. If the advertisement of bilateral contracts are not offers whereas advertisement of unilateral contracts are construed to be offers. In the case reference to Carlill v Carbolic Smoke Ball [1893] the advertisement is a unilateral contract was held to be an offer, this is most special. The offer is an offer must be true, rather than an invitation to treat. The invitation
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Memorandum to Ms. Starz To: Ms. Starz From Date: November 16, 2013 Subject: Legal Contract between Claire Dawn and Leonardo deCapo I have found that there is in fact a legal binding contract between Claire Dawn as the Offeror and Leonardo deCapo as the Offeree (Spagnola,nd). On February 13, 2008 Claire Dawn presented a written offer to sell her 1965 Corvette Stingray to Leonardo deCapo for $25,995.00 plus the cost of the title transfer. The Mutuality of Obligation, or the requirement
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of a contract, which are (1) an agreement; (2) legal obligation. To constitute a contract there must be an agreement. An agreement is composed of two elements, offer and acceptance. The party making the offer is known as the offeror, the party to whom the offer is made is known as the offeree. Thus, there are essentially to be two parties to an agreement. They both must be thinking of the same thing in the same sense. In other words, there must be consensus-ad-idem. All agreements are contracts if
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licence, the contract can be deemed illegal depending on whether the purpose of the licence was used to raise revenue for the government or to protect the public. Example Case Law: Smith v Mawhood A tobacconist had to obtain a licence and have his name painted on the place of business. However, he did not do so and tried to sue a customer to recover the price of tobacco he sold at. Judgement: The purpose of the licence was to raise revenue for the government and hence the contract was not illegal
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Contracts Exam Question (with sample answers) Question 1 H. Bigbus (B hereafter) operates a construction supply business in Harrisburg. B specializes in supplying difficult-to-locate plumbing and light fixtures for contractors who do remodeling work. B sent the following letter to five contractors in the Harrisburg region: OFFER TO THE TRADE We have cornered the market for a source of brass "Orient Express" wall hanging light fixtures. We know (and we're sure that you do, too) that these fixtures
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According to Section 2(b) Contracts Act, 1950, ‘contract’ can be defined as ‘an agreement enforceable by law. It can be understand that a contract is an agreement which is legally binding between parties. There are 5 basic elements constituting a contract such as offer, acceptance of the offer, intention to create legal relations, consideration, certainty and capacity. Abu who operates small business manufacturing engine oil filters. He placed an advertisement in a car trade magazine stating that
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Contract by Tender The request for tenders represents an invitation to treat and each tender submitted amounts to an offer unless the request specifies that it will accept the lowest or highest tender or other condition. If the request contains such a condition this will amount to an offer of a unilateral contract where acceptance takes place on performing the condition: Spencer v. Harding Law Rep. 5 C. P. 561 Case summary Auctions Where an auction takes place with reserve
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CHAPTER 1 LAW OF CONTRACTS 2 Business Law Including Company Law 1.1 NATURE OF CONTRACT [Sections 1–2] INTRODUCTION We enter into contracts day after day. Taking a seat in a bus amounts to entering into a contract. When you put a coin in the slot of a weighing machine, you have entered into a contract. You go to a restaurant and take snacks, you have entered into a contract. In such cases, we do not even realise that we are making a contract. In the case of people engaged in trade
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unsound and intoxicated persons. Incapacity is someone that unable to manage the physical or mental of others’ events. According to Contract Law, Incapability, “ As the mentally unsound and intoxicated persons; if the person suffering from the disability is incapable of understanding the nature of the contract, the other party knows or ought to know it, and the contract is voidable.” The plaintiff was Arthur’s guardian and the defendant was Katrina. In this case Arthur sold the land to Katrina as $5000
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