Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 Issue :..........................................................................................................................................1 Rule :...........................................................................................................................................1 Application :................................................................................................................................3 Conclusion :................................................................................................................................3 REFRENCES...................................................................................................................................4
INTRODUCTION Contract is a formal promise between two parties that is legally enforceable on the basis of specific terms and conditions. Along with this, if the contract get violated then legitimate bodies allow the injured person to access the suitable legal remedies. However, assignment is going to highlight an appropriate procedure of forming contract through post. In fact, focussing on major elements of agreement which is based on online and sending offer or acceptance through e-mail as well as post (Besley, 2015). Basically, contract of Arthur and Ben will properly outlined in this project with the help of I-R-A-C method. MAIN BODY Issue : According to the given case of Arthur advertises, there are mainly two issue which is identified in this case; one is revocation of the contract by Ben and online agreement have some rules as well regulation which is not followed by the Arthur and Ben. Hence, revocation of contract and legal procedure is not followed is the problem come out from the given case. Rule : In the given case contract is done by the post through letter which is valid in the eyes of Australian law (Law, 2016). There are several rules these need to be followed by the Arthur and Ben while doing contract through letter. Description of these rules and regulation is mention below :- Withdrawal of acceptance by postIt must be noted that the Australian Postal Regulations enable an individual who has posted a letter for recovering it, provided that reasons for recovery are satisfactory and the person can put claim against it in written. The National Credit code is a statutory modification to the general postal rule. Schedule 1, s 196(1) (b), of the National Consumer Credit Protection Act 2009 (Cth) provides that documents which is sended through post is related to the consumer credit will be well thought out to be given on the date when it would have been delivered in the ordinary course of post (Loafman and Altman, 2014). Although, once the offeree accepted the offer, then agreement is binding on the parties until they both get mutual consent to release each other.
Electronic offer and acceptanceAgreement take place through electronic process then there is process of it which is not followed by the Ben. This is the major issue because of which breach of contract take place. Description of this are as follows :- Email, internet and contract formationAustralia's adoption of the United Nations Convention on the use of Electronic Communications in International Contract (2005), in 2011 the Commonwealth passed the Electronic Transactions Amendment Act 2011 (Cth). The electronic transactions act clarifies the rules and regulation: on the formation of contract is there any error in electronic communication (s 15D), on the invitation of treatment (s 15B), related to the location of party (s 15A), place of dispatch as well place of receipt (s 14B), timing of receipt (s 14A) and on the updation of electronic signature provision and default rules for time of dispatch (s 14)(Posner, 2014). Whereas, Electronic transaction Act provides times for receipt (s 14A) and dispatch (s 14). moreover, acceptance by email was capable of creating legal relation under the Electronic Transaction Act 1999 (Cth), ss 4, 8(1) as well as parties had reached a binding agreement. Contract is formed only when offerer received the offerer's acceptance at the server they had stipulated. In the case of online contract, s 15B provides that a proposal to form a agreement, rather than an proposal addressed to the particular person, is taken as an invitation to treat, unless the contrary intention can be shown clearly by the proposal making person (Brown, 2015). This is similar as the position at common law in which offerer who is inviting the formation of offers and further negotiations is not bound unless the priceoffered by the customer is accepted. According to the section 15B (2) state that, proposal using interactive applications for placing an order is consider invitation to treat. Formation of a contract onlineOnline contract only take place when purchaser accepts the terms and condition of the seller by clicking on the accept, agree or buy button. For ensuring unambiguous consent, most sellers need purchaser for modifying default setting from not agree to accept or agree. Moreover, if no natural person reviews or interview in formation of offer and acceptance then it will not form a valid contract under s 15C. Hence, these rules are not followed by the Arthur and Ben while doing contract through post(Allen and Kraakman, 2016).After doing agreement, Ben made modification in the existing contract which is not valid because of this issues rise between Arthur and Ben.
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Application : According to the given case study, an appropriate process of forming contract is not followed by both the parties which are involved in an agreement. Due to which, elements of contract done through post needs to apply in entire situation. As in this case, on 1stFebruary Arthur advertise his computer for sale in the newspaper which contain all the information. Ben is the person who read that advertisement on 2ndFebruary, then he post an offer for purchasing the computer in $2000. letter in which Ben shown interest of buying computer is received by the Arthur on the 4thFebruary. After this, on 5thFebruary, Arthur send letter to Ben in which mode of payment is asked by him i.e., cash or cheque. On next day Ben given reply to the letter in which it is written that mode of payment will be cash on delivery as well this letter is received by the Arthur on 8thFebruary. After this, on 10thFebruary at 2pm, Arthur send letter to Ben stating that he is agree for selling his computer in $2000 COD. Respective letter is reached to the Ben at 3pm on 11thFebruary but on 9thFebruary there is some modification in the contract which is made by Ben i.e., he want to purchase the computer in $1800 and this letter is sended by him to Arthur on 9thFebruary at 1pm. This letter is received by the Arthur on 10thFebruary at 4pm. One of the most resemble example of the Arthur case is; Adams in which same problem is identified (Adams V Lindsell (1818) 106 ER 250). this case was presented in court of King's Bench, description of the case: an offer for selling good was posted on 2ndSeptember, requesting a reply by the return of post. However, the letter was not correctly addressed and not reached to the offeree until 5thSeptember. But he accept it by the post on the same day, but letter was not reached till 9thSeptember to offeror. It was two days later than the defendants would have expected to received it. Since the offer had not heard anything by &th September, the date on which reply could been expected if the letter was addressed correctly (Halliday and Shaffer, 2015).Defendant sold product to the third party on 8thSeptember and offeree sued for breach of contract.Issue in this case is to identify when was the contract concluded on the posting or on receipt. But decision is that acceptance took place on 5thSeptember when the letter of acceptance is posted. The offerer's make mistake which was held against him in this instance. Conclusion : From the above mention case it has been concluded that, if revocation of the offer is to be effective, it must be received by the offerer is to be effectual, thus it should be received by the offere before they the posting of acceptance letter.Although, the offere receive notification of
the revocation of offer is not related as long as it was not clear that offerer has withdrawn the offer and this notice has arrived before the acceptance can take place. Same as in the case on Arthur and Ben, revocation of contract take place that firstly Ben want to purchase computer in $2000 but after some time modification in made by him in the agreement is that he will purchase it in $1800 and it was not clear by the Arthur because of delay in posting of letter.
REFRENCES Books and Journal Halliday, T. C. and Shaffer, G. eds., 2015.Transnational legal orders. Cambridge University Press. Allen, W. T. and Kraakman, R., 2016.Commentaries and cases on the law of business organization. Wolters Kluwer law & business. Posner, R. A., 2014.Economic analysis of law. Wolters Kluwer Law & Business. Loafman, L. and Altman, B.W., 2014. Going online: Building your business law course using the Quality Matters Rubric.Journal of Legal Studies Education.31(1). pp.21-54. Law, J. ed., 2016.A dictionary of business and management. Oxford University Press. Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the World Bank Doing Business project.Journal of Economic Perspectives.29(3). pp.99- 120. Brown, J. R., 2015. The demythification of the board of directors.American Business Law Journal.52(1). pp.131-200.