Rights in Business Law

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Table of Contents
Issue 1.............................................................................................................................2
Rule............................................................................................................................2
Application.................................................................................................................2
Conclusion..................................................................................................................2
Issue 2.............................................................................................................................3
Rule............................................................................................................................3
Application.................................................................................................................3
Conclusion..................................................................................................................3
Issue 3.............................................................................................................................4
Rule............................................................................................................................4
Application.................................................................................................................4
Conclusion..................................................................................................................4
Issue 4.............................................................................................................................5
Rule............................................................................................................................5
Application.................................................................................................................5
Conclusion..................................................................................................................5
References......................................................................................................................6

2BUSINESS LAW
Issue 1
The issue is discuss about Jacob’s rights in regards to the offer to purchase the Boast
Sound System that he made to the salesperson of High Five sound systems over telephone.
Rule
An offer is the willingness of the offeror presented before the offeree in order to make
a deal of some sort with him, either to do or not to do something. However, it must be
distinguished from ‘invitation to treat’ which is quite different from a usual offer (Cartwright
2016). As put forwarded in Carlill v Carbolic Smoke Ball Company [1892] EWCA 1
invitation to treat refers to the intention of a party who makes an offer available to a group of
person or even to the entire world to negotiate and eventually form a binding contract by
meeting the essential elements of a contract. It includes advertisement, auction and bids that
lets an interest party come and negotiate about it and make a counter-offer to carry forward
the invitation and turn it into an agreement.
Acceptance of an offer or an invitation must be communicated by the offeree, orally
or in writing or even by implication. However, it does not involve the offeror to confirm the
acceptance in case of a usual offer, but in case of ‘invitation to treat’, the offeror needs to
confirm the acceptance of the offeree and settle the negotiation clearly before the agreement
could be taken forward, unless it is an unilateral contract as mentioned in Carlill v Carbolic
Smoke Ball Company [1892] EWCA 1. It is so because of the nature of ‘invitation to treat’ as
it is made to the entire world. Therefore, making the counter-offer, the offeree must pay
attention to any negotiation or specification that the offeror needs to mention.
Application
Jacob called High Five sound systems and made a counter-offer to purchase a Boast
sound system over phone. He made the counter-offer and hung up without letting the

3BUSINESS LAW
salesperson confirm or say anything in regards to the offer. This implies that the conversation
pertaining to the purchase of the sound system was not complete as the salesperson had
something to convey to Jacob pertaining to the sale, which did not happen. This can be
marked as an incomplete negotiation of an invitation to treat for it was not a unilateral
contract. The communication of acceptance of invitation to treat was not proper in this case.
Although Jacob made his intentions clear about purchasing the sound system over
phone, yet the salesperson was unable to convey her specifications, which destroys the
elements of a valid counter-offer and its acceptance. Thus there is no agreement between the
parties involved here, thereby no right of Jacob arises here as well.
Conclusion
Jacob shall have no right to this invitation to treat as it lacks the necessary elements to
make an agreement.