Law of Contract and Principles

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Title Page
Name of the student
Student ID

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Contents
Solution.................................................................................................................................................4
Reference list.........................................................................................................................................8

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Solution
The law of contract is a common law and which requires the compliance of its common law
principles in order to formulate a valid legal contract amid the parties. In the present given
case study, the common law of contract and its principles are applied in order to advise
Mathew whether he is liable to asks Camita either:
 To take the car back and refunds $10,000 to him or
 Gives him a refund of $4,000 (reduction value) and keeping him the car.
In contract law, an offer is the first element to start a contractual relationship. As per Carlill v
Carbolic Smoke Ball Company [1892] EWCA Civ 1 when the offeror sends his
proposal/intention to an offeree with the hope that the offeree will comply with his desired
acts/omissions, then, an offer is made. As per Empirnall Holdings Pty Ltd v Machon Paull
Partners Pty Ltd (NSW) (1988) 14 NSWLR 527 when the offer so made is allowed/approved
by the offeree then it is an acceptance in law. (Gibson and Fraser 2013)
But, as per Pharmaceutical Society of Great Britain v Boots Court of Appeal [1953] 1 QB
401 when offers are invited with the help of auctions, advertisements, display of goods, then,
it is called an invitation to treat. In Partridge v Crittenden [1968] 1 WLR 1204 an
advertisement was held to be an invitation to treat. Combination of an offer and acceptance
results in the formation of an agreement. (Latimer 2012)
Considering the law to the present case analysis, it is submitted that Camita Quilla owns and
drives cars for past 16 years. She wish to sell her car @ $10,000 and thus advertises the same
in the newspaper.
As per Partridge v Crittenden [1968] an advertisement is an invitation to treat and any person
who wants to purchase the car from Camita Quilla should makes an offer to her. Camita