Enterprise Law: Validity of Contracts and Legal Rights

ENTERPRISE LAW
STUDENT ID:
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ENTERPRISE LAW
Question 1
Issue
The key issue is to decide if Carla has the legal right to refuse to sell the book.
Rule
With regards to contract formation, a pivotal element is the presence of valid agreement. This
typically requires a valid acceptance to a valid offer. However, it is imperative to differentiate
between offers and invitation to treat (Carter, 2016). A relevant case in this regards is
Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] EWCA
Civ 6. In this particular case, the medicines were displayed in the shelves along with their
respective prices (Andrews, 2014). This display was considered as invitation to treat and not
offer. This difference is relevant as if the display is an offer to buy the underlying product at the
mentioned price, then acceptance by the customer would result in contract formation. However,
if the display is an invitation to treat, then the willingness on the part of the buyer to purchase the
good at a specified price is an offer which may or may not be accepted by the seller (Gibson &
Fraser, 2014).
Application
In the given case, the display of books in the shop by Carla would be considered as invitation to
treat and not offer. Hence the action on part of Brenda to take a copy of the book and offer the
money which is displayed on the book would constitute as offer. This offer may or may not be
accepted by Carla who has the legal right to reject the offer or provide a counter offer.
Considering that the display of book is not offer but invitation to treat, hence Carla can legally
refuse the sell the book.
Conclusion
Based on the above discussion, it is evident that considering that display of book at the shop does
not constitute an offer to sell, hence Carla can legally refuse to sell the book presented by
Brenda.

ENTERPRISE LAW
Question 2
PART A
Issue
The key issue is to determine if an agreement has been formed between Edward and Greg with
regards to presence of valid offer and valid acceptance.
Rule
With regards to execution of a valid agreement, it is essential to have a matching and valid offer
and acceptance. The timing of enforceability of the acceptance varies in accordance with the
underlying communication media that is used for communicating acceptance. In case of the use
of postal media for execution of agreement, postal rules are applicable (Taylor & Taylor, 2015).
As per this, an offer would be considered as valid when the letter containing the offer is received
by the offeree. However, the acceptance on part of the offeree is considered to be applicable
when the acceptance letter is posted by the offeree (Edlin, 2015). As a result, in postal
communication the acceptance is independent of the time taken for the offeror to receive the
acceptance letter. This aspect has been highlighted in the verdict of the Adams v Lindsell (1818)
1 B & Ald 681 case (Paterson, Robertson & Duke, 2015).
Application
As per the given facts, an offer through post has been sent by Edward on February 4th. This offer
becomes applicable on February 7 when the letter is received by Greg. He replies to the letter
and provides his acceptance on the very same day. As per the postal rule of acceptance, the
acceptance communicated by Greg would be applicable on February 7th only since the
acceptance letter has been posted on the very same day. The acceptance letter is received on
February 11 but it does not matter. Owing to presence of both a valid offer and a valid
acceptance, an agreement has been enacted between Edward and Greg on February 7. Further,
Greg changes his mind and sends another communication to Edward stated that he is not
interested. However, since acceptance has been given earlier, now it cannot be rolled back.
Conclusion