The case of Hong Kong Fir Shipping

Running head: COMMERCIAL LAW
COMMERCIAL LAW
Name of the Student
Name of the University
Author Note

COMMERCIAL LAW1
A particular contract in order to be legally binding must fulfil certain necessary elements.
There are certain primary issues that will be discussed in relation to the given scenario. For
instance, has a legally obligatory contract been established between Peter and Ray, and whether
Ray should pay the additional 50 pounds to Peter? Another issue is what the legal rights or the
legal responsibilities of Peter may be in relation to Sara concerning the additional 15 pounds. It
shall also be discussed that whether a legally obligatory contract has been established between
Tom and Peter, and what may be the legal responsibilities and legal rights of Peter in relation to
Tom.
In this regard, the case of Adam v Lindsell [1818] B & Ald 681 must be regarded as a
significant case. The notion of postal rule was initially formed in this particular case. In this case,
it was stated that when a particular acceptance is made through post, then, as per the normal
utilization by mankind, the acceptance shall be said to have been made when the acceptance has
been posted. The ruling of this case was supported by another case named Henthorn v
Fraser [1892] 2 Ch 27.
The case of Smith v Hughes (1871) LR 6 QB 597 must be considered to be a relevant
case in relation to the given scenario. In this case, it was forwarded that when any specific offer
is made and in response to that specific offer, an acceptance is made, then it may be said that
there is an existence of an agreement. In the case of Currie v Misa [1875] LR 10 Ex 153, it was
stated that the element of consideration is a major requisite before the establishment and
enforcement of a contract. The parties that are involved must have the legal intention for the
establishment of a contract.