Law of Contract: Assignment
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Added on 2021-06-17
Law of Contract: Assignment
Added on 2021-06-17
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1ContentsSolution 1....................................................................................................................................................2I...................................................................................................................................................................2Issues.......................................................................................................................................................2Law..........................................................................................................................................................2Application..............................................................................................................................................3Conclusion...............................................................................................................................................4II..................................................................................................................................................................4Issues.......................................................................................................................................................4Law..........................................................................................................................................................4Application..............................................................................................................................................5Conclusion...............................................................................................................................................6Solution 2....................................................................................................................................................6Reference List.............................................................................................................................................8
2Solution 1I.IssuesIs there a valid contract amid Avinash and Magda?LawIn the law of contract, there are five elements together that constitute a valid contract. (Clarke2013)An offer is the prime element that initiates any contract. An offer is the statement of terms andcondition which an offeror wants the offeree to comply with and thus communicates the same tothe offeree with an anticipation of approval and is held in Carlill v Carbolic Smoke Ball Co[1893].An acceptance is the approval of the offer that is received by the offeree. An acceptance must bethe mirror image of the offer and is held in Empirnall Holdings Pty Ltd v Machon Paull PartnersPty Ltd (1988). If the terms are altered while accepting then it cancels the offer and is a counteroffer wherein the acceptance with varied terms is a new offer made by the offeree and is held inHyde v Wrench (1840).If the offeror wants to cancel the offer then the same must be done before acceptance. An offer can be made and kept open for an offeree for certain time but such offers are valid ifsupported with some consideration. When offer are invited by auctions, tenders, advertisements etc then the same are invitations totreat. The person relying on the invitation makes an offer to the inviter and the inviter acts like anofferee and when confirms the same then results in acceptance and is held in Partridge vCrittenden [1968]. The parties to the contract must be major and of sound mind and is held in Nash v Inman [1908];The parties must have legal intention to abide by the contract and is held in Air Great Lakes PtyLtd v KS Easter (Holdings) Pty Ltd [1989].
3The contract must be supported with consideration which is something of value in exchange ofpromises and is held in Coulls v Bagots Executor & Trustee Co Ltd (1967). The law is now applied to the facts of the case. Application The facts submit that Magda was a professional photographer. She sells prints with the help ofher website and from her home studio. Magda through her website is selling a portrait of anAustralian Olympic champion, Paris Stilton. An advertisement is posted in regard to the samewherein the portrait is stated to be for $2000 with ‘a limited edition of only 3 prints’.Now, normally when any person intends to sell anything then an offer is made. But, in case ofadvertisements, as per Partridge v Crittenden [1968] it is an invitation to sell. Thus, Magda hasnot made an offer rather, it is an invitation and she must act like an offeree. Avinash liked the painting and thus on 19th February sent an email to Magda offering the portraitfor $1600. Thus, an offer is made. This offer was rejected by Magda by making a counter offer@ 1800 Hyde v Wrench (1840). Thus, Avinash must accept the same in order to make a validcontract. Avinash did not accept the offer but requires a time till 21st February to confirm the dealwith his wife.Now. Magda permitted to Avinash that he can reply by 21st Feb, but this acceptance is notsupported with any consideration and thus is not valid. On 20th February, Avinash sends his confirmation with a condition that he requires a certificateof authenticity. Thus, the acceptance of Avinash is not the mirror image of the offer made byMagda, but, a term is incorporated. So, this cancels the offer of Magda @ 1800. Now, Magda on 20 the February at 9:30 AM sends an offer wherein she submitted that she iswilling to provide all the details @ 1800 provided Avian accepts the offer by 4PM. Now, before Avinash could accept the offer of Magda she sold the painting to someone else andrevokes the offer at 11:30.So, there is no contract amid the parties and the acceptance of Avinash on 21st February does nothave any value.
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