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MLC707 - Commercial and Corporations Law Case Study

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Deakin University

   

Commercial and Corporations Law (MLC707)

   

Added on  2020-03-02

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In the case study, the advertisement which was placed on the Facebook page of Amy would be deemed as an invitation to treat as it invited the interests of the people and based on Partridge v Crittenden.

MLC707 - Commercial and Corporations Law Case Study

   

Deakin University

   

Commercial and Corporations Law (MLC707)

   Added on 2020-03-02

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MLC707 - Commercial and Corporations Law Case Study_1
CONTRACT LAW2IssueWhether a contract was formed between Ian and Amy in this case, or not? Whether Ian has anyremedies on the basis of facts give, or not?RuleA contract is a promise which takes place between two or a higher number of parties and whichinvolves one party doing a particular thing and the other party paying the promised consideration(Clarke and Clarke, 2016). A contract has two formation methods, i.e., the oral manner and thewritten manner. In the oral form, the stipulations of the contract are traded and told in a spokenway; and in a written form, the contractual stipulations are properly declared on a document,which the contracting parties sign (Lambiris and Griffin, 2016). For creating a contract, it iscrucial that certain specific elements are covered under it. These elements include the offer, theacceptance, the consideration, intent, clarity, consent and capacity. Even if one of these elementsis missing, a legally binding contract is not created (Ayres and Klass, 2012).Offer is the first stage in contract formation as per which one of the parties has to offer certainterms to the other party. There is a stark divergence amid an offer and an invitation of treat(Andrews, 2015). The former symbolizes the objective of the contracting parties to form lawfulrelations, whilst the latter symbolizes the objective of the contracting parties to initiatenegotiations. The facts of a particular case decide if an offer has been made or an invitation oftreat was present (Latimer, 2012). In Harvey v Facey [1893] AC 552, the court gave thestatement that a request for information is not an offer (Poole, 2016). And in Gibson v
MLC707 - Commercial and Corporations Law Case Study_2
CONTRACT LAW3Manchester City Council [1979] UKHL 6, it was stated that “may be prepared to sell” had to betaken as an announcement of prices instead of being treated as a distinctive offer as itsupplemented the original offer (British and Irish Legal Information Institute, 2017). Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401 was a case where the judgesheld that the goods which are kept on the shelf in a particular shop are an invitation to treat andnot an offer. So, the seller is not under the obligation to sell the product to the buyer, till the timethey pick the goods and take it for billing (Swarb, 2016). The adverts of newspapers andmagazines are also deemed as invitation to treat in general, as was seen in Partridge v Crittenden[1968] 1 WLR 1204 (E-Law Resources 2017a). Though, where the advert is such, which can beaccepted by the reader, by merely acting upon it, it is considered as an offer, as was seen inCarlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1 (E-Law Resources, 2017b). Upon the offer being made, there is a need to obtain acceptance on the offer that has beenforwarded. Further, the acceptance needs to be submitted by such party to which the offereemade the offerr. And the next requirement is that the offer has to be accepted exactly in themanner in which it was made (Mulcahy, 2008). If there is a alteration in the communicationwhich is sent as acceptance and in the terms of offer made, the communication would be taken tobe a counter offer, and not an offer. This was seen when the matter of Hyde v. Wrench (1840) 3Beav 334 was brought before court (Marson and Ferris, 2015). And once this happens, theoriginal offer expires. In Felthouse v Bindley (1862) EWHC CP J 35, it was provided that meresilence would not be deemed as acceptance (Stone and Devenney, 2017). The acceptance date is taken to be such date on which the message of acceptance arrives beforethe offer making party. But, for emails, the Electronic Transactions Act, 1999 (Cth) applies.
MLC707 - Commercial and Corporations Law Case Study_3

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