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BLO1105 Application of Business Law

11 Pages2784 Words108 Views
   

VICTORIA UNIVERSITY

   

BLO1105 Business Law (BLO1105)

   

Added on  2020-02-24

BLO1105 Application of Business Law

   

VICTORIA UNIVERSITY

   

BLO1105 Business Law (BLO1105)

   Added on 2020-02-24

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PAGE \*Running head: Contract Law1Contract LawName of the StudentName of the UniversityAuthor Note:
BLO1105 Application of Business  Law_1
PAGE \*Title2Solution 13Issue 13Rule of Law3Application of Law4Conclusion5Issue 25Rule of Law5Application of Law6Conclusion7Solution 2: Essay7References12Solution 1Issue 1Whether there is a binding contract that has formed between the parties?
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PAGE \*Title3Rule of LawAdvertisements made in the newspapers are not an offer but an invitation to treat. It means thatthere is an invitation to the public in general to make an offer and no promise is attached to thisinvitation to treat (Partridge v Crittenden, [1968]). Counter offer is made to negotiate the final contract. There is automatic rejection of theoriginal offer once the counter offer is made and there shall not be any contract that is formedunless there is acceptance made under the new terms. The case of Hyde v Wrench establishedthis, wherein there was an offer made for selling by Wrench of his land for £1000. Hyde thenmade a counter offer for £950 which Wrench did not accept. Hyde then told Wrench that he wasready to pay £1000 and this communication was ignored. The rule which this case establishedwas that “ Once a counter offer is made and the original offer rejected, the offeree can no longeraccept the original offer (Hyde v Wrench, [1840]).There is a valid contract which is formed only once the offer has been accepted in theterms that are exact, meaning thereby that there is mirroring of the terms. Conditions that bring an end to an offer there may be an understanding stated implictor expressly in an offer on which the offer’s continuous existence depends, if such anunderstanding then the offer will come to an end. As opined in the case of Financings Ltd vStimpson in this case it was opined that the offer made was subject to the implied condition thatthe car is to continue in its unharmed state and failure of this condition led to the lapse of theoffer (Financings Ltd v Stimpson, [1962]).
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PAGE \*Title4When the mode of communication of acceptance is instantaneous the general rule of lawshall apply and contract will be formed once the acceptance is communicated (Entores L D vMiles Far East Corporation, [1955]). One of the most essential elements of contract iscommunication it is required to be made certainly and clearly and should be received prior tothe effective date of the contract(Entores L D v Miles Far East Corporation, [1955]). In case ofacceptance through email as in the case Stellard Pty Ltd & Anor v North Queensland Fuel PtyLtd a binding contract shall be formed once acceptance is communicated through exchange ofemails (Christensen, 2001) between both the parties (Stellard Pty Ltd & Anor v NorthQueensland Fuel Pty Ltd, [2015]). Once an acceptance is made the subsequent purportedwithdrawal will not be effective (Dunmore (Countess) v Alexander, [1830]). Application of LawIn the given scenario the below mentioned would be applicable:The advertisement by Mary was merely an invitation to treat for which an offer was madeby Lianne, Mary for this offer gave the proposed price of $10,000 for which a counteroffer of $9,500. A conditional counter-offer was made for this by Mary on the same datehowever since the understanding of the offer was not met with as in the case FinancingsLtd v Stimpson this offer was no longer in existence. Another offer was made by Lianne as the previous offers ceased to exist for $9,500 towhich Mary did not agree and placed a counter offer. Mary received the acceptance of theoffer and the subsequent revocation of the acceptance, however the agreement becamebinding once the acceptance is received by Mary and the subsequent revocation will notbe effective.
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