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Basic Principles of Contract Law

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Added on  2019-10-12

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This article discusses the basic principles of contract law, including invitation to treat, offer, acceptance, and consideration. It also provides examples and explanations of each principle.
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BASIC PRINCIPLES OF CONTRACT LAW1Answer 1(a)The advertisement which was put up by Anna was an invitation or solicitation for treat. Annaput up the tag of price on the product when she was making it advertised in the newspaper.The price tag that was set for the home theatre showed that it was an invitation that wasoffered to general public and even allowed for bargaining. The common law helped to implythat display sale is a sample of a treat invitation whether a tag of price is put up or anythingparticular is displayed. (b)(i) Peter willingly accepted the offer by Anna to purchase her system of home theater. Hiswillingness is depicted by his readiness to recompense either by cash or cheque or also by hiscommitment to visit her the next day.(ii) Peter did not annul Anna’s offer of selling the home theatre system. He instead enquiredabout the system’s state which cannot be treated as a annulment or revocation. If a bargainwould have been done from peter’s side for purchasing the system at a lesser price, then therevocation of the offer would have taken place. An offer’ revocation takes place only becauseit leads to formation of another offer that counters the former offer. Thus, creating a counteroffer can lead to formation of a new agreement or contract comprising distinguishing termsthan the earlier one (Fried, C. 2015).(c) Yes, Anna was responsible and obliged to uphold the home theatre system for theappointment of Peter the succeeding day. Peter accepted the offering orally and he also asked forthe payment mode. He even assured Anna about his confirmed visit the succeeding day. Peteralso took the offer between the periods that was stipulated for the offer. He fulfilled all themandatory conditions of the offer and there was no complaint from Anna’s side. However, in
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BASIC PRINCIPLES OF CONTRACT LAW2order to ensure Anna to keep the system for peter only, he could have given a down payment forthe system. He also could have left his own details with her which would have let her contacthim before selling the system to anyone else.(d)Anna was not entitled to allow anyone to view the home theatre system on the same daybecause Peter accepted the invitation to treat by her which helped making it an offer. However,the offer by Anna was open to general public as it was an invitation to treat and when someonehad accepted the that invitation, it converted into an offer. Peter didn’t revoke or annul theoffer as he accepted the priced that was affixed. Anna and Peter were ready to meet thesucceeding day to conduct the sale. Anna breached the contract she had made and did notreflect upon the consideration (McKendrick, E. 2014).(e)The contract formed with Peter was a valid contract as Peter had accepted and took theinvitation to treat thus converting it to an offer. Although Anna informed peter that she requirescheque or money to complete the deal, she should not have shown the home theatre system toAlex unless and until Peter himself refused to visit her the succeeding day. Also before sellingthe home theatre to Alex, she must have informed peter about the sale. However, the contractthat was formed between Anna and Alex was not legal as it was created by Anna while wasalready in contract with Peter. Although, all the conditions were met by Alex before buying thesystem, the seller must have either enquired from or informed Peter about the sale.
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