Directors Duties and Contract Formation - Company Law and Contract Law

COMPANY LAW
AND CONTRACT
LAW
Directors Duties and Contract
Formation

ISSUE
 Whether the customers who have
produced the advertisement before
Ming has put up the notice that the offer
is finished would be able to form a
contract?
 Whether customers who do not have the
advertisement would be able to enforce
the contract?
 Whether it is correct on the part of Ming
to argue that there as the Hair cut costs
$60, offering it for $10 would not be
legally binding?

CASES
 Carlill v Carbolic Smoke Ball Company
[1892] EWCA Civ 1
 R v Clarke [1927] HCA 47
 Lampleigh v Braithwaite [1615] EWHC
KB J17.
 Dickinson v Dodds (1875) 2 Ch D 463

RULES
 An advertisement can be a valid offer and a valid
acceptance does not always require communication
especially when it is a unilateral offer. Intention will
also be present if the advertisement is commercial.
Consideration is provided when the person acts upon
the advertisement. Thus, it creates a valid contract
 only the individual to who the offeror has made an
offer and the person who has knowledge that the offer
is present can accept an offer.
 Consideration is not required being of a market value
of the other consideration. The consideration in a
contract is required to be sufficient rather than being
adequate.
 Revocation of offer is required to take place prior to
acceptance or else there would be no effect of the
acceptance at all.