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Can Donald Cruisers take any action against Donald for non-compliance of the offer?

   

Added on  2021-06-14

11 Pages3386 Words444 Views
Running head: CONTRACT LAWConsiderationName of the StudentName of the UniversityAuthor Note

1CONTRACT LAWIssue:The main issue of the case is to determine whether Cruisers can take any action againstDonald for non-compliance of the offer or not.Rule:The subject matter of the case is based on the basic principle of acceptance andcompliance of an offer. Offer is one of the main elements of contract. According to the Contractlaw, a contract could be regarded as valid on meeting certain requirements. Offer is awillingness of the person who has a legal intention to be bound with another regarding asubject. The offer will be legally binding in nature when it accepts by another. It has been heldin Esso Petroleum Ltd v Commissioners of Customs and Excise1that intention is necessary incase of forming a contract. If the parties do not have a legal intention to be bind with eachother, no contract will be formed validly. There are certain norms laid down behind the offerand acceptance of the offer. According to the general rule of contract, an offer can be accepteddirectly that is the person to whom the offer has been made should accept the offer by directcommunication with the person who made the offer. However, there are certain exceptions tothis rule. One of such provision is the postal rule where it has been stated that an offer will betreated as accepted if the person to whom the offer has been made has posted his consentstatement. In this case, it is not necessary that the offer maker received the posted consentletter. This rule has been established for the first time in the case of Adam v Lindsell2. There arecertain rules mentioned regarding the process of acceptance too. According to the generalprinciple of law, if an offer could not come in the knowledge of any person, the offer could notbe treated as effective and valid in nature. It has been observed in Jacques & Co v McLean3thatthe person accepts the offer should have a knowledge about the offer and contents of the offer.Apart from the offer and acceptance, consideration plays an important role in thisregard. It has been stated under the general provision of law that there should be certainconsideration regarding a contract. Contract is an exchange of promise and therefore, there1[1976] 1 All ER 1172[1818] B & Ald 6813 [1880] 5 QBD 346

2CONTRACT LAWshould be certain benefit substances, which is known as consideration. In Thomas v Thomas4, ithas been observed that consideration should be something that has a legal value in the eyes oflaw. However, the subject matter of consideration should be differed from any things thatgained by love and affection. Therefore, a gift could not be regarded as consideration. There arecertain rules regarding the consideration. The subject matter of the consideration should not bea past event. The principle has been established in the case of Re McArdle5. However, it hasbeen observed in Lampleigh v Braithwaite6 that in case there are any request proceeded inthe past event, the said past thing could be regarded as valid consideration. Further, theamount of consideration should be sufficient and it will be transferable in nature. The subjectmatter of the consideration is required to be transferred to the person to whom the promisehas been made. This principle has been made in Tweddle v Atkinson7. Any existing contractualor public duty could not be regarded as consideration. Further, it has been held that any partperformance or part payment regarding any debt is invalid consideration. it has been made inthe case of Pinnel’s case 1602 5 Rep 117 that part payment of any consideration will not betreated as valid unless the promise for part payment has been made by the promise makerbefore the due date of the payment. According to the general provision of law, if not all theseelements could be met, the same will not be treated as valid consideration and in the absenceof valid consideration, no offer will take place.However, it can be stated that if the person to whom the offer has been made shouldhave received the offer and he should have certain knowledge regarding the offer or if there isany reward mentioned in the offer. In case, he is totally unknown regarding the facts of thenewly generated offer, the benefit or detriment of the offer will not be applied to him. in thatcase the person is required to maintain all the terms of the previous offer.Application:In this given case, it has been observed that Cruisers has made a leasing contract withDonald and provide car to him. it has been contracted between them that Donald will pay £4004 (1842) 2 QB 8515 (1951) Ch 6696 [1615] EWHC KB J177 [1861] EWHC QB J57

3CONTRACT LAWto the company and enjoy the use of car. However, the company had made certain changesregarding the previously decided price due to sudden financial crisis and it has been decidedthat Donald had to pay £300 in lieu of £400. However, it has been observed that Donald hadreceived the offer letter but did not open the same. Therefore, according to the case of Jacques& Co v McLean, it can be stated that the newly made offer price will not be applied on him andhe has to pay the money as decided in the previous contract. However, it has been observed inthe case that Donald had paid less than the previously generated contract and in that case, thecompany can bring action against him. Further, it can be stated that Donald had made partpayment and according to the general provision, it be stated that this does not create validnature of consideration. it can be stated that the company is allowed to take proper action fornon-maintenance of previously generated contract and not for the newly offered price.Conclusion:Therefore, it can be stated that Cruisers can bring action against Donald for non-maintenance of previously decided contractual consideration.Issue:The present issue in this case is to decide whether Cruisers can take any action againstEdwina or not.Rule:The subject matter of the case is based on the effects of contractual terms. According tothe general provision of contract, it can be stated that it is an agreement by which one partypromises to give something as against any consideration and the party has accepted the same.In Malaysia, the nature of the contract has been described in the Contracts Act 1950. All theprovisions of the Act has followed the English rule of contract. According to section 2 (h) of theAct, it can be stated that contract is a legally enforceable contract and all the terms of thecontract will be imposed on both the parties mandatorily. The parties are required to maintainall the rules of the contract and in case of any breach, legal action can be taken against them.According to the Malaysian Contract Act, it has been stated that not all the agreements arecontract and there are certain elements must be fulfilled in all this case to make an agreement

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