Business Law

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

1BUSINESS LAW
Question 1
Issue
Whether Carla has the legal entitlement to make refusal with respect to the sale of the
book.
Rule
Invitation to treat cannot be construed to be an offer, it is just an expression of intention
with respect to negotiation of contract. It indicates an invitation for making an offer. In the
case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd
[1953] EWCA Civ 6, it has been held by the court that exhibition of an item for sale with a
price attached to it does not implies an offer. A display of eagerness to buy the same does not
imply an acceptance but it can be best construed to be an offer, which needs to be accepted to
form a valid contract. The person making such a display of the item has the authority to
refuse to sell the item if he has not accepted the same.
Application
In the present situation, Carla suggested Brendan to search in the history book section in
the back of the shop in order to find anything similar to the book Brendan has been looking
for. This can be construed to be an invitation to treat and not an offer. Again, Brendan found
the exact same book as he has been looking for and desired to buy the same. This can be
treated as an offer to buy, which Carla has a right to refuse as no valid contract has been
formed.
Conclusion
Carla has the legal entitlement to make refusal with respect to the sale of the book.

2BUSINESS LAW
Question 2
Issue 1
Whether Edward has a contract with Greg.
Rule
To make a valid contract, an acceptance needs to be communicated to the offeror. In case
of acceptance made via postal services, communication is complete when the offeree has
posted his acceptance and has no control over the same. The knowledge of the offeree
regarding that acceptance is irrelevant. The same can be illustrated with the case of Henthorn
v Fraser [1892] 2 Ch 27. Once an offer has been accepted, a valid contract is created and the
revocation of such an acceptance cannot be made as a binding legal obligation has been
created. This can be illustrated with the case of Adams v Lindsell (1818) 106 ER 250.
Application
In the present situation, the offer has been made by posting a letter on 4th February by
Edward towards Greg. The receipt of the letter by Greg has occurred on the 7th of February.
On the same day, the acceptance of the offer has been made by Greg and he has posted as
letter to that effect. However, before the receipt of the letter by Edward, Greg changed his
mind and decided to revoke the acceptance. He sent an email to that effect to Edward and
asked him to ignore the letter of acceptance. Applying the postal rule, it can be contended that
the posting of the letter is a valid acceptance and the knowledge of the offeror regarding the
same is irrelevant. Hence,