Contract Formation and Alternate Dispute Resolution Techniques

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Contents
Solution............................................................................................................................................2
The Issues raised..........................................................................................................................2
Applicable Law............................................................................................................................2
Application of Law......................................................................................................................3
Conclusion...................................................................................................................................5
Bibliography....................................................................................................................................7

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Solution
The Issues raised
i. Whether any contractual relationship is established amid the parties. Who are the parties
who have formulated the contract?
ii. Whether there is a contract that is made amid Bernard and Alan?
iii. Whether there is a contract that is made amid Charleen and Alan?
iv. Whether there is a contract that is made amid Damien and Alan?
v. The various alternative dispute resolution options available and the pros/ cons with these
options
Applicable Law
The offeror and the offeree are the guiding parties who together by making an offer and
acceptance might result in the contract formation, if there is legal intention and consideration to
support the promises. (Tan, 1999)
An offer is made by an offeror to an offeree specifying the terms that he inteds to be comply with
by the offeree absolutly. The offeror can either verbally or textually or by actions can
communicate the offer to make it valid and is held in (RBC Properties Pte Ltd v Defu Furniture
Pte Ltd , 2015).
The confirmation of the offer by an offeree is an acceptance and is held in (Empirnall Holdings
Pty Ltd v Machon Paull Partners Pty Ltd, 1988). An acceptance is valid provided it is
communicated and is in the notion of the offeror and is held in (Woo Kah Wai v Chew Ai Hua
Sandra, 2014). If the acceptance is intended by the offeree but the same is not communicated to
the offeror by any means (written, spoken or conduct), then, such intention has no relevance in
law and is not an acceptance and is held in (RI International Pte Ltd v Lonstroff AG, 2014). An
acceptable by post is an instant acceptance and is complete even when the offeror is not aware
of the same and is held in the leading case of (Adams v Lindsell , 1818). (Latimer, 2012)
Instead of making offers, when offers are received by display of goods, or auctions or with the
help of advertisement or tenders, etc, then, it is an invitaion to treat and is held in
(Pharmaceutical Society v Boots Chemists , (1953)). There is no offer made and the inviter
expects the receipt of the offer. If the inviter upon receiving offer confirms the offer, then, it is
acceptance resulting in contract and is held in (Midlink Development Pte Ltd v The. Stansfield
Group Pte Ltd, 2004). (SMU, 2014)
The offer and acceptance shoukd be combined with some benefit called conisderation which
makes the contract neforcebale and is held in (Chwee Kin Keong v Digilandmall.com Pte Ltd ,
2005)
The promises which are made by the offeror and the offeree must be made with legal intention.
In hosuehold contract the intention is missing and is held in (Balfour v Balfour , 1919) but in

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commercial the same is present and is held in (Esso Petroleum v Commissioners of Customs &
Excise, 1976) The presumption is rebuttable. (SMU, 2014)
Application of Law
The facts of the factual scenario submit that Alan was studying in Kaplan Higher Education and
was the student of commercial law. He was having a test book of the said course along with the
notes. In order to sell the book, a post is made on his face boo page addressing to his friends who
are part of the University to avail the book and the notes for $200. The post was made on 1st
November and the interested party must confirm their intentions by 5th November. Now, the post
on facebook page is a kind of advertisement and thus as per (Partridge v Crittenden , 1968) an
invitation is made to specific people, friends of facebook. If any person is interested in the
invitation can make an offer to Alan
Issue i
Damien on the evening of 4th November meet Alan at the university and handed over $200 for
the book. Thus as per (Carlill v Carbolic Smoke Ball Company, 1892) an offer is made. This
offer is accepted by Alan when he received the money from Damien and the acceptance is valid.
So, there is offer and acceptance with legal intention and consideration of $200. Hence there is
valid contract amid the parties.
Issue ii
In order to understand whether there is a contract between Bernard and Alan, it is important to
understand the communications that took place amid them.
Bernard is the friend of Alan and was also part of his facebook friend list. Bernard also enrolled
in the University. Thus, the invitation that is made by Alan fits in with Bernard and thus makes
his eligible to make an offer against the invitation that is made by Alan. On 2nd November 2015,
by relying on the invitation that is made by Alan, he communicated with Alan and expressed his
interest of buying the book. But, he quoted the price of buying the book at $150 (Alan has given
the price quote on his facebook page @ $200 for the book). But, what Bernard has done is the
request to Alan. There is only an expression of showing interest and there was no formal offer
that was made by Bernard to Alan, the acceptance of which will result in contract amid the two.
Thus, as per (Stevenson, Jaques, & Co v McLean, 1880), Bernard has not communicated any
kind of offer to Alan.
Alan upon getting aware of the request of Bernard, on 3rd November communicated to him that
the only price on which he is interested in selling the book is $200. So, the reply of Alan is also
no wheree any kind of offer, but is only the statement that is made to the quest of Bernard. Thus,
till now, it is only the invitaion of Alan that exist amid the parties. Further, on 3rd November,
Beranard posted his acceptance the acceptance is valid as soon as the letter is posted. He also
enclosed a money $200. But, the acceptance by Bernard is of no value as he gave acceptahnce to
an invitaion of Alan. There is no offer againt which an accepatnce is given.
So, the acceptance of Bernard has no value and thus there is no contract amid the two.