Law of Contracts - Case Study 4

Running Head: Case Study
LAW OF CONTRACTS
Name of the Student
Name of the University
Author’s Note

CASE STUDY1
Issue:
The first issue in the case is whether Try and Save is obliged to Donald to have the Kettle
at the discounted price.
The second issue in the case is whether the store has the legal obligation to find the stock
of the toaster they advertised and supply Donald with one of them.
Rules:
Offer and Acceptance is the most essential elements of a contract. Offer can be
explained as the willingness to establish the legal relationship with the other party and shall be
enforceable as soon as the terms are accepted by the other party. The intention to establish the
legal relation forms the founding test of the determination of offer and the same has been laid
down in Smith vs. Hughes (1871) LR 6 QB 597. It was subsequently applied in Ermogenous vs.
Greek Orthodox Community of SA Inc. [2002] HCA 8.
Acceptance is the describes as the consensus ad idem meaning the agreement to the
same thing (Baker 2000). It is an objective perspective which means that the other party freely
agrees to abide by the terms and conditions of the contract as offered by the offeror along with
the consideration. The acceptance should be at free will, clear and communicated to the other
party. Communication of acceptance holds a significant role (Powell vs. Lee (1908) 99 L.T. 284)
and thus, it has been established that silence is not a valid acceptance (Felthouse vs.
Bindley [1862] EWHC J35).