Contract Law: Validity and Enforceability

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Contents
Solution 1.........................................................................................................................................2
Issues............................................................................................................................................2
Relevant Law...............................................................................................................................2
Application of law........................................................................................................................4
Conclusion...................................................................................................................................5
Solution 2.........................................................................................................................................5
Issues............................................................................................................................................5
Relevant Law...............................................................................................................................5
Application of law........................................................................................................................6
Conclusion...................................................................................................................................7
Reference List..................................................................................................................................8

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Solution 1
There are four major issues that are involved in the given situation:
Issues
i. Prior the notice is displayed on the window; around 40 customers produce the
customers to Ming. Is there a valid contract and Ming and such customers?
ii. Are the ten customers who are does not have the advertisement can participate in the
promotion?
iii. Can Ming deny the enforceability of the contract on the basis that $10 is insufficient
for the hair cut which is normally for $60?
iv. Whether the withdrawal of the promotion will relieve Ming from his obligation to
provide hair cut?
Relevant Law
In any contractual relationship, there is an involvement of two parties, an offeror and an offeree.
Any contract can be made when there are exchange of promises between the offeror and the
offeree and such promises are combined with their legal intention, their capacity and
consideration. (Latimer, 2016).
Every contract is initiated with the help of an offer. An offeror is the designated person who
initiates an offer. It is the wish of an offeror which is transferred to an offeree specifying the acts
and omissions that an offeror intends to be comply with by an offeree (Smith v Hughes , 1857).
The conveying of offeror intention is called an offer. Any offer can be made in textual, oral or by
conduct (Carlill v Carbolic Smoke Ball Co, 1893). But, whatever may be the form, it was held in
R v Clarke (1927) that an offer must be conversed to the offeree. (Andrews, 2011)
The offeree when after receipt of the offer from the offeror gave his approval to the offer without
bringing any kind of deviation to the terms of the offer, then, a valid acceptance is said to take
place and is held in Brambles Holdings Ltd v Bathurst City Council (2001). An approval can be
made in textual, oral or by conduct and is held in Mobil Oil Australia v Wellcome International
(1998). But, whatever may be the form, it was held in RA Brierley Investments Ltd v Landmark
Corp Ltd (1966), that an acceptance is said to be enforceable in law only when the offer is
conversed to the offeror. (Wishart, 2012)

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Further, the offeree must make an acceptance as per the desires and the modes described by the
offeror (Manchester Diocesan Council (1970).
Further once an acceptance is made it was held in Empirnall Holdings Pty Ltd v Machon Paull
Partners Pty Ltd. (NSW) (1988) that the same is enforceable when the offeror is aware of the
same. But, if the offeree changes his mind, then, the acceptance can be cancelled before the same
is communicated and is held in Byrne v Van Tienhoven (1880). But, any offer made view
advertisement can only be revoked by following the same mode, that is, advertisement.
Now, as already submitted that the offeree when after receipt of the offer gave his approval to the
offer without bringing any kind of deviation to the terms of the offer, then, a valid acceptance is
said to take place. But, at times deviation are brought in and new terms are made part of the
acceptance. As per Hyde v Wrench (1840) such are counter offers and cancels the bid so made.
The new offer is the counter offer and the offeree stands at the footing of an offeror.
Many a times, an offer is not made by the offeror. But, the person desires to seek offers. This can
be attained by advertisements and are called an act of invitation to treat. An inviter seeks offers
and when the same are received then the inviter can accept the offers resulting in contracts. In
Partridge v Crittenden [1968] an advertisement is an invitation to offer. (Andrews, 2011)
Further, when an offer is made to the general public, then, such are general offers and the same
can be acted by acting s per the acts prescribed on the advertisement (Carlill v Carbolic Smoke
Ball Co.
Another important element to make an agreement enforceable is consideration. Any benefit
which is transferred to hold the promises is called a consideration and is held in Biotechnology
Australia Pty Ltd v Pace (1988). A consideration must be sufficient and not adequate.
Also, the promises must be made with lawful intention and is held in Balfour v Balfour [1919].
Application of law
An advertisement is issued by Ming in a newspaper according to which any person who brings
the newspaper advertisement will be given the hair cut for $10.