Contract Law

This document provides an overview of contract law and its application in different cases. It discusses the elements of a valid contract, including offer and acceptance. Real-life examples and case studies are used to illustrate the concepts.

Contract Law

Table of Contents
Case 1...............................................................................................................................................4
Issue.............................................................................................................................................4
Law..............................................................................................................................................4
Application..................................................................................................................................4
Conclusion...................................................................................................................................5
Case 2...............................................................................................................................................5
Issue.............................................................................................................................................5
Law..............................................................................................................................................5
Application..................................................................................................................................5
Conclusion...................................................................................................................................6
Case 3...............................................................................................................................................6
Issue.............................................................................................................................................6
Law..............................................................................................................................................6
Applicability................................................................................................................................6
Conclusion...................................................................................................................................7
Case 4...............................................................................................................................................7
Issue.............................................................................................................................................7
Law..............................................................................................................................................7
Applicability................................................................................................................................8

Conclusion...................................................................................................................................8
References........................................................................................................................................9

CASE 1
Issue
Given that, Marry has refused to pay for the red jazz, was it is compulsory for Marry to pay the
amount of car. Is the binding agreement has been entered between the parties?
Law
The procedure by which an agreement to enter into a contract occurs is that of offer and
acceptance. A contractual agreement occurs when the offeror has communicated an offer to the
offeree; and the offeree has communicated acceptance to the (Harris, 2013). The effect of this
doctrine in the law of contract is that if a person appears to have made an offer or communicated
acceptance (that appearance being tested according to how it would be interpreted by a
reasonable person in the position of the other party), and the other party has relied on that
appearance, then the first party will be taken to have made the offer or communicated the
acceptance.
Application
In the present case, Marry walking around the car lot, and saw a white Honda Jazz and entered
into the office of Dan and offered the consideration $14000 for buying the Honda jazz. However,
one day later, when she came to the office for taking delivery of the car, Dan handed her the key
tothe red car, which is from adifferent car lot. Thus it can be accessed that the contract for red car
is null and void as it never existed. Further through applying the concepts of mistake (unilateral
mistake) can be applied in present case as only one party has mistaken in present case. The
decision of Cundy v Lindsay can be applied in present case , it has been seen that a reasonable

person must interpret, that the Marry definitely offer the consideration for the car, which was
placed in the car lot, which is White Honda jazz and not the offered Red car.
Conclusion
On the basis of the aboveanalysis, it has been seen that Dan has breached the terms of the
agreement. Therefore Marry should not stick by the deal.
CASE 2
Issue
The issue is related towhether the acceptance by the Dan binding the Michael for purchasing the
truck.
Law
Offer is different from an invitation to offer. A contractual agreement can be enforced when the
offeror has conversed a deal to the offeree and in turn the same has been accepted by the offeror.
The advertisementis considered as an invitation to offer(Harris, 2013). Further, the offer can be
revoked only before the acceptance by the offeree has reached to offeror. An exception to the
rule relating to communication being effective when it reaches the mind of the offeror is the
postal acceptance rule. The same ruling was followed in the case of Adams v Lindsell (1818).
Application
In the present case, Dan makes the invitation to offer by advertisement of the car for $20000.
Michael made the offer in the form of a letter to Dan to buy the car for $18,500. He accepted the
offer and posts the letter on 7th January. Since the offer cannot be revoked after the acceptance by
the offeree. The decision made in case of Adams v Lindsell (1818) can be applied in present case

and it can be concluded that as the effective acceptance hadtaken place at the time, when he
posted the letter that is on 7ThJanuary.
Conclusion
On the basis of the above analysis, it has been concluded that the offer cannot be revoked by
Michael after its acceptance from the Dan. It does not make any impact that the letter reached
Michael on 10th January. Therefore, Effective acceptance took place on the date of keeping the
latter at the post, and it forms the valid contract, which is enforceable by law.
CASE 3
Issue
The issue is related with; whether all the aspect of the valid contract has been satisfied in the
present deal.
Law
A contract is referred to as an agreement made between the two parties, which is legally binding
agreement. The three elements of a valid contract are: agreement, intention to be legally bound
and consideration (Harris, 2013). A valid agreement takes place, at the time when the offer is
made by one party,and it is accepted by another party. Further, an offer can be revoked only
before it is accepted by the offeree .
Applicability
In the present study, Dan by putting his signature on the contract note gave his acceptance. All
the essential elements of the contract such as the intention of the parties, consideration, offer and

acceptance have been fulfilled between the Dan and Gordan. Therefore this contract is
enforceable by law. It is essential for Dan to perform the contract.
Conclusion
By considering the relevant aspect of the studies, it has been concluded that the letter sent by the
lawyer of Gordon for compliance with the contract was in order.
CASE 4
Issue
The issue is related to, whether the price tag on the product is considered as an offer and binds
the parties for the performance of the contract.
Law
Offer must be different from the invitation to offer. According to the common law, a general
listing of the price on the goods or inthe advertisement, without indicating the word ‘for sale’
would not be regarded as an offer (Harris, 2013). It is regarded as an invitation to treat. Thus, it
is an invitation to the consumer to make an offer. In the case of the Pharmaceutical Society of
Great Britain v. Boots Cash Chemists [1953], the court held that display of good in the shop is
considered as an invitation to treat, not the offer. The reason for this rule is to protect shop
owners who mis-label price-tags – if the price-tag was an offer that the customer could accept
simply by picking up the item. Further the contract would be binding at that moment and the
shop keeper would have to accept the amount indicated. The contract was formed when the
customer took the goods to the till (where the pharmacist was on duty) and the pharmacist
accepted the offer.

Applicability
By applying the ruling established in case of Pharmaceutical Society of Great Britain v. Boots
Cash Chemists [1953], and the fact that mere listing of the price on the goods is not considered
as an offer, it is an invitation to offer. Therefore the contract would not be binding at the time
when the customer selected the goods.
Conclusion
By considering the facts of the above analysis, it has been evaluated that demand by the Lawyer,
for the performance under the contract is not valid, because the price tag on the goods is
considered as an invitation to treat only, not an offer.

REFERENCES
Harris, B. (2013). Business and Corporations Law. Charles Sturt University. New South Wales,
Australia