Contractual Relationship and Consumer Rights

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Title Page
Name of the student
Student

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Contents
Solution 1.........................................................................................................................................3
Issue.............................................................................................................................................3
Applicable law.............................................................................................................................3
Application of law........................................................................................................................4
Conclusion...................................................................................................................................5
Solution 2.........................................................................................................................................5
Issue.............................................................................................................................................5
Applicable Law............................................................................................................................5
Application of Law......................................................................................................................6
Conclusion...................................................................................................................................7
Bibliography....................................................................................................................................8

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Solution 1
Issue
With whom High Five Systems has a binding contractual relationship, that is, Jacob, Iris, Hamid
or Ranbir?
Applicable law
Two private persons when wish to abide by their promises legally can bind themselves together
under a contractual relationship. A contract is made with the combination of agreement, legal
intent, consideration and party’s ability.1
The offeror acts to convey a proposal explicitly with the hope of confirmation is an offer in law
and is held in Carlill v. Carbolic Smoke Ball Co2. It can be explicit in words, conduct or text
form but as per Smith v Hughes3 the offeree should attain its knowledge to make it legal and
binding in law. An offer made with the help of instant mode of communication is only complete
when the offeree is in the knowledge of the same and is held in Entores v Miles Far East Corp4.
The offeree when agrees to abide by what is offered to him is an acceptance in law. An
acceptance should correspond to the offer in order to hold valid and is held in Empirnall
Holdings Pty Ltd v Machon Paull Partners Pty Ltd5. It can be explicit in words, conduct or text
form but as per Entores v Miles Far East Corp the offeror should attain its knowledge to make it
legal and binding in law. As per Felthouse v Bindley6 an acceptance intended but never
communicated is nothing and results in no contract.
When the acceptance is not in correspondence with the offer but changes the offer terms then,
such act is counter offer and not an acceptance. The counter offer kills original offer. But,
seeking queries and information is no counter offer and is held in Hyde v Wrench7.
1Enshen Li, Business and Corporate Law (Second Edition), (Thomson Reuters: Pyrmont, NSW, 2017).
2 Carlill v Carbolic Smoke Ball Co. Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1.
3 Smith v Hughes (1871) LR 6 QB 597.
4 Entores v Miles Far East Corp [1955] 2 QB 327.
5 Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (NSW) (1988) 14 NSWLR 527.
6 Felthouse v Bindley (1862) EWHC CP J 35.
7 Hyde v Wrench [1840] EWHC Ch J90 .