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Business laws - Assignment

   

Added on  2021-05-27

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Running Head: BUSINESS LAWBUSINESS LAWName of the Student:Name of the University:Author Note

1BUSINESS LAWQuestion 1 AThis section of the report will discuss the essential elements of a valid contract. This section ofthe report will also discuss whether a contract existed between the café and Avinash.The essential elements of a valid contract are the following:Offer- An offer is described as a promise of paying a consideration by the promisor to thepromisee for the fulfillment of the promise. However for an offer to be considered to be valid,such offer must not be ambiguous and must be complete in its terms. The court stated in thenotable case AGC (Advances) Ltd v McWhirter1that an offer would not be considered to be avalid one if such offer lacks certainty of the terms or if the terms are incomplete. In such ascenario in which the offer lacks certainty and completeness in relation to its terms such anexpression would be considered to be a mere invitation to treat. It had been held in the notablecase Pharmaceutical Society of Great Britain V Boots Cash Chemists ( Southern) Ltd 2 thatgoods displayed on the shelves of a store would not constitute an offer but a mere invitation totreat. Thus in this given case study it can be stated that the self service menu presented by thecafé merely constituted an invitation to treat. However, when Avinash had placed the order ofthe pastry and the beverage from the digital self service menu, it constituted a valid offer. He wasthe offeror in this case who offered to pay consideration to the cafe for serving the order.Acceptance- Acceptance can be considered to be second most important essential of a validcontract. A contract will legally bind the parties only when the offer has been accepted by theofferee. However for an acceptance to be considered valid: it has to be clear and un ambiguous1 (1977) 1 BLR 94542(1953) 1 QB 401

2BUSINESS LAWIt has to be accepted on the terms of the offer. Making any change in the terms of theoffer while accepting it would not constitute valid acceptance but a mere counter offerMasters v Cameron 3The acceptance of the offer must be made as per specified criteria of the offeror. The person who accepts the offer must be aware of the offer and be acting in reliance ofthe offer as held in the case R v Clarke 4The acceptance of the offer has to be communicated to the offeror for the acceptance tobe considered to be considered to be valid as held in the case Powell v Lee 5.Silence onthe part of the offeror will not constitute valid acceptance as held in the case Felthouse vBindley6.Thus by analyzing the facts of the case and applying the legal provisions to the same it can bestated that café had accepted Avinash’s offer in accordance with the terms of the offer. Theacceptance of the offer had also been communicated to Avinash by the Café in the form of theprinted ticket. The printed ticket given to Avinash by then café was the proof of the acceptanceof Avinash’s ofer. Intention to create legal relations- A contract will legally bind the parties only on the occasionthe parties to the contract must have intended to create legal relations.In the case Carlill vCarbolic Smoke Ball case it had been held that intention to create legal relations must beassessed from the viewpoint of a person who is reasonable in nature. Further in accordance withthe judgment of the case Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd7, it can be3(1954) 91 CLR 353.4 (1927) 40CLR 2275( 1908) 99LT 2846 (1862) 142 ER 10377 [1989] 2 NSWLR 309.

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