Contract Law Rules - Assignment
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Added on 2021-05-31
Contract Law Rules - Assignment
Added on 2021-05-31
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Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
1BUSINESS LAWSIntroduction There are basically five elements of a valid contract offer, acceptance intention to create legalobligation capacity and consideration. Offer and acceptance are fundamentals to the creation ofan agreement between the parties. They work on the notion of consensus ad idem which meansmeeting of minds. With respect to such laws an offer and acceptance is only established whenthe minds of the parties are totally met (Poole 2016). The paper discusses rules in relation tocontract law specifically that of offer and acceptance, unilateral contract, revocation of offer,minors capacity to contract and postal rule of acceptance. The rules are applied on facts toanalyze the position of the parties. In relation to the position which Top Tickets Ltd are in there are three primary issues which havebe addressedFirstly, whether Bethany has created a valid contract with Top Tickets’ or not Secondly, whether Shaun has a valid contract with Top Tickets’ or notThirdly, whether Maya has a valid contract with Top Tickets’ or notMain BodyIn order to address the issues identified above the rules in relation to contract law which needs tobe discussed are that of offer and acceptance, unilateral contract, revocation of offer, minorscapacity to contract and postal rule of acceptance. Offer and acceptance Offer and acceptance are fundamentals to the creation of an agreement between the parties.They work on the notion of consensus ad idem which means meeting of minds. With respect to
2BUSINESS LAWSsuch laws an offer and acceptance is only established when the minds of the parties are totallymet (McKendrick 2014). An offer is a promise which is provided in exchange of a performance to be made by the party towhom the offer has been made. An offer and invitation to offer is not the same (Hunter 2017).Any advertisement is not held to be an offer as such rules had been stated in the case ofPartridge v Crittenden[1968] 1 WLR 1204. Advertisement cannot be an offer as the offerormay not be able to provide the item to all those who want to buy it. The court made it clear thatthere is no significance of an invitation to treat at law. No legal rights are attached to aninvitation to treat. In his case the court held that an advertisement made by the defendant in thenews paper for the sale of protected bird was not an offer and thus the defendant was not liable.A person can make an offer to an invitation and cannot accept it. The provisions of unilateral offer had been analyzed through the case of Carlill v CarbolicSmoke Ball Company [1892] EWCA Civ 1. In this case an advertisement had been consideredto be an offer. The court stated that an offer can be directed to the world at large. When an offerdoes not require communicating the acceptance it is a unilateral offer and the contract is formedwhen the party completes there part of the consideration. In this case it had been stated by thecourt that the revocation of offer has to be done in a similar way or mode through which the offerhad been made. In this case the court claimant the acted according to the advertisement made bythe defendant and thus the court held that when the consideration was performed an unilateralcontract was established and there was no need to communicate the acceptance to the offeror. The postal rule solves confusion in relation to the time of acceptance. The rule was initiated andapplied in the case of Adams v Lindsell (1818) 106 ER 250. The rules is applied to
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