Contract Case Study

Running head: CONTRACT CASE STUDY 1
Contract Case Study
Name
Institution

CONTRACT CASE STUDY 2
Contract Case Study
INTRODUCTION
A contract is an agreement between two or more parties with intentions to create legal
obligations. For a contract to be valid must have the essential terms of a valid contract which
include offer, acceptance, consideration, capacity, intention to create legal relations among other
elements.1 Alan’s case scenario raises various contractual issues ranging from the essentials of a
valid contract to vitiation of a contract making in null and void through fraudulent
misrepresentation on the part of the offeror.2
Whether there was any valid contract formed
Alan made a universal offer to all the friends who were to enroll in school and take the
commercial law unit. The offer was thus open to any party who will accept to buy the book.
Bernard was the first person to respond to Alan’s offer through a counter-offer. There was no
contract in the first instance between Alan and Bernard due to the counter-offer. For a contract to
be formed there must be offer and acceptance. A counter-offer will only amount to a contract if
the offeror accepts the counter offer. Alan rejected Bernard’s counter-offer through his reply to
Bernard’s post on 3 November 2015
Alan’s sister Charleen was the first person to enter into a valid contract with Alan. He saw the
offer and communicated his acceptance directly to Alan. The contract between Alan and
Charleen had all the essential elements of a valid contract including offer, acceptance,
1 Andrew Phang B,(2012) The law of Contract In Singapore , Academy Publishing
2 Ch. 08 The Law of Contract practical Guide s 1(8.1.1)

CONTRACT CASE STUDY 3
consideration and intention to create legal relations. Their contract was formed on 2 November
2015 when Charleen communicated her acceptance to her brother.3
An offer gets terminated through acceptance. By the time Damien was sending a text to Alan for
acceptance of his offer, it had already been terminated through Charlene’s acceptance. The offer
was no longer lasting at that moment.
Bernard’s legal position and remedies
The contract between Alan and Bernard was not valid in the first place since it was formed when
the offer had ceased lasting. Bernard made a counter offer in the first instance before accepting
an already terminated offer. The counter offer was rejected through a reply of Alan to Bernard’s
post. Alan however acted fraudulently by failing to inform Bernard that the offer had already
been taken by someone else who was her sister. Alan is therefore liable for fraudulent
misrepresentation of the contract by offering to sell to his friends issued free of charge in school.
Alan also breached the terms of the contract by selling to Bernard his original textbook only
without the written notes which were party of the offer. Bernard can therefore sue Alan for
fraudulent misrepresentation for selling him a book issued free of charge in school. He can also
institute for a civil suit claiming breach of contract because he only received the book without
the written notes. Bernard has two legal remedies which include rescission of the contract as the
result of breach and compensation in terms of damages for fraudulent misrepresentation.4
Charleen’s legal position and remedies
The contract between Charleen and his brother was valid. Alan therefore breached the contract
by failing to deliver the book to Charleen despite him taking consideration. Allan therefore
3 Andrew BL,(2012) Contract Law in Singapore, Kluwer Law International publisher
4 Ch. 08 The Law of Contract practical Guide s 2