SEO Expert Suggestions for Desklib Online Library

1
Contents
Solution 1....................................................................................................................................................2
Issue i...........................................................................................................................................................2
The Relevant Law....................................................................................................................................2
The application of law.............................................................................................................................3
Concluding remarks.................................................................................................................................4
Issue ii.....................................................................................................................................................4
Solution 2....................................................................................................................................................5
Reference List.............................................................................................................................................9

2
Solution 1
Issue i.
Is there a valid contract that is made amid Sam and Josie?
The Relevant Law
A contract is a legal document which is made amid the parties if all the contractual elements are
present. The elements that are needed includes; 1
Firstly, an offer- It is a proposal/statement which is made by an offeror to an offeree specifying
the promise he wants to be comply with without bringing any change to the statement so made. It
is the offer to decide to whom he is intending the offer t be made, that is, an individual, to a
group, a class of people, etc2. It is necessary that the offeree must in the knowledge of the offer in
order to consider the same as complete.3
Once an offer is made but later the offeror wants to cancel the offer then he can do so but the
cancellation should be before the confirmation of the offeree4. In Brinkibon v Stahag und
Stahlwarenhandelsgesellschaft mbH5 it was rightly held that when the cancellation of the offer is
made by sending the messae through fax machine, then, the cancellation is complete even when
the offeree has not read the message. 6
Secondly, an acceptance, is the confirmation to the offer terms7. An offeree has the right to
communicate acceptance either orally or by conduct or in written form and once an acceptance is
made there is a valid contract amid the parties but a silence is not an acceptance in law8.
1 John W. Carter, Contract Law in Australia (LexisNexis Butterworths, 2013).
2 Carlill v. Carbolic Smoke Ball Co (1891)
3 John W. Carter, n1.
4 MIK, Eliza, ‘The Effectiveness of Acceptances Communicated by Electronic Means, Or – Does the Postal Acceptance Rule
Apply to Email’ (Journal of Contract Law, 2009).
5 Brinkibon v Stahag und Stahlwarenhandelsgesellschaft mbH [1983] 2 AC 34 at 42.
6 MIK, Eliza, n4.
7 Latec Finance Ltd v Knight (1969).
8 Felthouse v Bindley (1862).

3
But, instead of making the offer, when the offeree introduces its own terms then the original
offer lapses and then a counter offer is made which is a new offer as the original offer is
cancelled9.
But, it is held in Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd10 an acceptance
made through post is an immediate acceptance and there is no need that the offeror must come in
the knowledge of the acceptance to make a binding agreement.
However, an acceptance when made to the offer results in the formation of an agreement. But,
when no offer is made but invitations are send to the intended parties with a hope that such
parties will revert with an offer then it is an act of invitation to treat and is analyzed in
Pharmaceutical Society of Great Britain v Boots11.
Thirdly, consideration is the element which is required to gave enforceability to the agreement. It
is something of value which is made by the parties to support the promises12.
Fourthly, legal intention implies that the parties are willing to comply with the contractual terms
in law and the contract is not made based on trust and love13.
Fifthly, capacity implies that the parties are major and are not barred under law.
Compliance of all the elements results in contract formation.
The application of law
Issue 1
Josie painted a painting of a sunflower and she placed the painting at her studio for $950 which
is established at her own premises. It is submitted that as Pharmaceutical Society of Great
Britain v Boots display of goods is an invitation and not an offer. So, an invitation is made by
Josie.
9 Hyde v Wrench (1840) Beav 334.
10 Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (1988) 14 NSWLR 527.
11 Pharmaceutical Society of Great Britain v Boots [1953] 1 QB 401.
12 Currie v Misa (1875) LR 10 Ex 153
13 Balfour v Balfour [1919] 2 KB 571