Contract Law and Parking Fees Dispute
Added on 2020-03-02
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Running head: CONTRACT LAWContract LawName of the StudentName of the UniversityAuthor Note
1CONTRACT LAW Question 1IssueThe issue which has to be determined in this case that whether a valid contract wasformed between the transactions which took place among Eddo Products Co and Vestley Co.In addition if there was a valid contract from between these parties what were the actualterms of the contract?RulesA valid contract initially needs the presence of proper Orphan and acceptance. In order tomake an agreement and contract a valid offer acceptance are compulsory. Valid offer inrelation to the sale of goods has to contain specific terms in order to be complete. A completeoffer in relation to the sale of goods has to comprise of elements such as the mode of deliverythe mode of payment replies to be paid specification of the goods and how the delivery is tobe given as provided by the case of Imerva Corporation Pty Ltd v Kuna1Whether or not in agreement has been reached by the parties with analysed through theapplication of the rules of acceptance and offer as said in R v Clarke2.A contract also can be in writing or oral the primary requirement is that there must be anintention on the part of the person making the offer to bind the other party to its terms. Inother words a person to whom the offer is made must be induced by its words to accept it aslegally binding as provided in the case of Paula v Asli3.An offer which is not complete is usually considered to be an invitation to deal and there isno legal significance of this term. The difference between an offer and invitation to an offer isnot very large but it is very important to analyse the difference between the two terms as an1 [2017] VSCA 1682[1927] HCA 473 [2017] VSC 258
2CONTRACT LAW offer has a legal relevance and whereas an invitation to deal does not as stated in the caseofAGC (Advances) Ltd v McWhirter4The definition of an offer was given in the case of ANZ v Frost Holdings Pty Ltd [1989] VR695where the court decided that an offer is a statement which is made by a person to aspecific group, individual or to the whole world so that the offer can be accepted and apromise in return to the terms of the offer can be done by the person who accepts it. Intentionto bind the other party legally to the terms of an offer is very important towards setting out alegally binding offer. In addition and offer has to be accepted before that time provided bythe offer or before it is withdrawn by the person making it.As stated in the case of Australian Woollen Mills Pty Ltd v The Commonwealth5until and unless an agreement has been duly accepted after the completion of all negotiationsa valid contract does not come into existence. Thus, if there is anything to be agreed on by theparties to the contract until conclusion has been reached by the parties to the agreement withrespect to such terms, a contract cannot come into existenceWhen an offer has been accepted by a person to whom it has been made it results outinto the formation of a binding contract. There must be an intention on the part of the personmaking the acceptance to be bound by the terms of the offer in order to constitute a validacceptance as stated in Taylor v Johnson6. It is necessary to note that the correspondence ofthe acceptance with the offer is necessary to form a contract although the acceptance can beeither expressed an implied. The terms of the acceptance must be unequivocal to the art of theoffer stated by the case of Tonitto v Bassal7. In order to accept an offer silence cannot beused as specified in the offer by the person making on the other hand if a reasonable time has4(1977) 1 BLR 94545(1954) 92CLR 4246[1983] HCA 57(1992) 28 NSWLR 564
3CONTRACT LAW won by silence of the person to whom the offer has been made would result in the rejection ofthe offer. In case the acceptance has any additional terms to that of the offer it would not beconsidered as a valid acceptance until the additional turns out of such nature then they aretotally in favour of the offeror as provided by the case of Tallerman & Co Ltd v Nathan'sMerchandise (Vic) Pty Ltd8The acceptance of an offer is only completed research acceptance is duly communicated tothe offering in a mood which has been prescribed so the offer. If any specific mode ofacceptance is not provided by the offer then the acceptance can be made through any mode ofcommunication as stated byDirector of Public Prosecutions for Victoria v Le9ApplicationThe letter which was posted by Eddo products on 1st November was a mere requestfor information and did not account to an offer but only an invitation to deal. Through theletter the company only demanded information about the price at which the can mangoesgrade B can be sold.The letter which was sent on 6 November by Vestley Co in reply to the request forinformation made by Eddo can be considered as an offer. This can be said because the letterstated the price, the delivery date, the specification of goods, which are the primaryrequirements to make an offer for the sale of goods complete. The letter contain the pricewhich was $900 per ton, the specification of goods which was in sizes of 50 grams 100 gramsand 150 grams and fairly distributed between the sizes and delivery of such good word to becommenced on 2nd February. The letter had been received by Eddo on November 12th.In reply to the letter received on 12th November Eddo mailed Vestley Co that theyhave accepted offer but yet to submit a formal offer which would follow this letter. Another8[1957] HCA 109[2007] HCA 52.
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