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Contract Law Assignment

   

Added on  2020-03-23

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1ContentsSolution 1....................................................................................................................................................2A.Contract amid Mary and Lianne......................................................................................................2Issue.....................................................................................................................................................2Related Law.........................................................................................................................................2Application of law...................................................................................................................................4Conclusion...............................................................................................................................................4B..................................................................................................................................................................4Issue........................................................................................................................................................4Relevant law............................................................................................................................................4Application of law...................................................................................................................................5Conclusion...............................................................................................................................................6Solution 2....................................................................................................................................................6Reference List.............................................................................................................................................8
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2Solution 1A.Contract amid Mary and LianneIssueWhether the exchange of emails amid Lianne and Mary has resulted into the establishment of acontractual relationship? Related LawContract A contract is an agreement enforceable by law. An agreement is established between two partiesknown as an offeror and an offeree. When an offeror makes and offer to an offeree and the sameis accepted by the offeree then an agreement is formed between two. For an agreement to be incategory of a contract it is necessary that apart for the offer and its acceptance there must beintention of parties to contract, consideration and capacity of parties.(Stone, 2005)An offerAn offer is an intent made by an offeror to an offeree to perform or not to perform certain tasks.It is the intention of the offeror which he communicates to an offeree and is held in AustralianWoollen MillsPty. Ltd.v. TheCommonwealth[1954]. An offer is concluded when it iscommunicated to the person for whom the same is meant. An offer can be in written or an oralform. Offer may be for a specific person or for the world at large. The case law of Carlill vCarbolic Smoke Ball Company (1892) is based on concept of general and specific offers..Now, an offer can be revoked by the offeror either expressly or by lapse of time. When theofferor gave a specific time duration within which the offeree must accept the offer and if theofferee does not accept the offer within such time frame then there is revocation of offer on thebasis of lapse of time and is held in Goldsbrough, Mort & Co Ltd v Quinn[1910].Invitation to treat An invitation to treat is a concept in contract law which is different from an offer. when theintended person wish to receive proposals from the public at large or specific persons and thus inorder to do so he makes advertisements, holds auctions, tenders, display of goods etc and thusreceives proposals (offer), then the intended person is an inviter and the act is an act of invitationto treat and is held in Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern)
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3Ltd [1953]. The proposal are received from the offeror and the inviter must act like an offereewho if accepts the offers so received results in a binding relationship amid the parties. In the leading case of Harris v Nickerson(1873), it was held by the court that an advertisement isnot an offer, rather, the same is construed as an invitation to treat and any person who isinterested in the advertisement must make an offer to the advertiser.AcceptanceAn acceptance is the second most important ingredient in contract law. An acceptance is theconfirmation to the terms of the offer by the offeree and is held in Airways Corp of New Zealandv GeyserlandAirways Ltd [1996].An acceptance is the mirror image of the offer. If the acceptance is made with different termsthat are part of an offer then the acceptance is not the mirror image of the offer and such anacceptance is not valid and is called counter offer and is held in Pars TechnologyLimitedv CityLink Transport HoldingsLimited (1999). A counter offer revokes the original offer and must beregarded as new offer in law which is made by the offeree (new offeror) to the old offeror. Theold offeror now becomes the new offeree and if he accepts the new offer then there is a bondingcontract amid the parties. But, mere request or communication of information’s cannot be regarded as an acceptance in lawand is held in Stevenson, Jacques and Co v McLean (1880).An acceptance is considered to be complete in law provided the offeror is aware of the same andis held in Latec Finance Pty Ltd v Knight[1969]. When an acceptance is made with the help ofinstant mode of communication, that is, with the help of telephone, fax, etc, then thecommunication of acceptance takes place when it comes in the awareness of the offeror. Thesame rule applies when an acceptance is made with the help of email. Till the time the email isnot read by the offeror, the acceptance is not complete unless and until there is a considerablelapse of time has passedand is held inEntores Ltd v Miles Far East Corporation[1955]. But, therule is not applicable when the acceptance is with the help of post and it was decided that theacceptance is considered to be over on the part of the offeree as soon as the letter is put intotransit. There is no need that the same must come within the awareness of the offerorand is heldinAdam v Lindsell[1818]. (HILL, 2001)
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