Evaluation of Contractual Agreements among Parties

This assignment evaluates the legal enforceability and validity of contractual agreements among parties with the help of case studies. It analyzes the presence of important aspects like offer, acceptance, postal rules, binding contact, and invitation to treat.

ASSIGNMENT

Table of Contents
Introduction......................................................................................................................................3
Evaluation of agreement among parties..........................................................................................3
Case 1 Steve and Polly................................................................................................................3
Case 2 Albert, Steve and Kate.....................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
A contract is enforced when both the parties voluntarily and legally agreed on the binding
agreement. Contractual agreements are enforceable by law as they are appropriately accepted
and hold up by the requirements of law. For making an agreement, various transitions are taken
into account for example: exchange of goods, services, currencies and assurance and promises.
Whenever the situation occurs, where the contract is breached by other party than the law is
obliged to assure that compensation is provided to the injured party. The court provides the legal
remedy in order to pay for the damages those happens because of cancellation of contract. In
present case study agreements within the parties are analyzed to make a decision regarding its
legal enforceability and validity. Apart from this, the presence of the contract within the parties
is evaluated and is examined by considering the existence of important aspects that are connected
with contract. A fact such as offer, acceptance, postal rules, binding contact, and invitation to
treat are analyzed in detail relating to case and is further supported by justifications, details,
explanations, reasons to explore the appropriate conclusion.
Evaluation of agreement among parties
Case 1 Steve and Polly
In accordance with the facts of the case the following agreement within the Steve and Polly is a
valid contract. The advertisement is generated by the Steve, as he is a professional consultant
and will provide a financial advice to the customers. Further, whosoever will recommend him to
third parties will receive discount or gifts. Therefore, it can be assessed in specified case
advertisement is invitation to offer and not offer is given to the parties. There is a huge
difference between the offer and an invitation to treat. Contract will be the binding contact when
there is both acceptance and offer between two parties. Offer is the binding agreement within
two parties on the other hand invitation to treat is just an invitation of an offer (Smits, 2017).
The concept of invitation to treat is explained in a case study, the same has been discussed below
that is Partridge v Critenden (1968). In the above case law , Partridge has made an
advertisement in the magazine “Cage and Aviary Birds”, beneath “Classified Advertisements”,

in which following words were together with this Quality British Bramble finch cocks and hens
25 shillings each.
Here in the present case primary amount of payment is disclosed to Polly by the advertiser and
she needs appropriate time to respond for same. Further, she replied in mail about the terms on
the basis of which she took decision and mailed the same to the advertiser. Therefore as per the
postal rule law this agreement is a binding contract. Hence there will be a binding contact
between Steve and a Polly as she sent a mail to the advertiser and bind in the contract (Taylor,
and Taylor, 2017).
Postal rule is applied when the message is communicated by the parties with the postal services
or mails (Adriaanse, 2016). According to postal rule when the massage that has to be delivered
is evidently stamped, addressed or mailed and delivered to the party, at that moment agreement
will be done within the parties (Adriane, 2016). The concept of postal rule can be accessed from
case study (1880) 5 QBD 346 in which judgment was concluded that the contact is bind only
when the message is accepted by the offeror or advertiser.
Case 2 Albert, Steve and Kate
In the second case study, it can be assessed that there was just an invitation to treat and not a
binding contract within the parties. The facts represent that there was just an invitation to offer,
not an offer as well as acceptance between three of them, thus no legal contact was there in this
case. There is a major difference between invitations to treat and offer.
Steve as a financial advisor make and advertisement and his old client reverted on it and
recommended 6 of its friend for the consultation, further Steve has realized that he is unable to
provide the discount card and gifts therefore he removed its advertisement. Further one of
Albert’s friends comes to approach Steve for the agreements and at that moment the
advertisement was closed by the Steve. Further, he did not accept the terms he had made before;
therefore there would be no binding contract between Alfred and Steve. On the other hand there
were no personal words were done between Kate and Steve as well as no agreement was signed
between them. It was just an invitation to treat not a valid contact (Arvind, 2017).
As per the decision of case law Partridge v Critenden (1968) 2, All ER 425 invitation of Treat
does not have legal acceptance like the offer. Further, in this case, terms in the invitation were

not accepted by Steve as there was a change made and offers and rewards are closed by the
offerer. In other words, it can be said that an individual who is making the invitation to treat
does not bind the other person in same manner as an offer does. Moreover invitation to offer can
be cancelled at any time before the contract done within the parties (Stone, and Devenney, 2017).
After analysis the above discussion, it can be concluded that agreement between Steve, Albert
and Kate is not valid as the acceptance was not provided by the offeror (Steve).
Conclusion
As per the above discussion it can be concluded that the advertisement that is presented is just
an invitation to treat and cannot considered as offer till both the parties agrees with the terms and
also clear offer and acceptance between the parties. In the first case there was a clear offer and
acceptance within a parties and the postal contact law is applicable as the acceptance is made by
the mail, and on the other hand in the second case there was not binding contract within the
parties as no contact acceptance is done from the parties. As it was just a invitation to treat which
was also further cancelled by the parties therefore the same cannot be held as binding contact.

References
Adriaanse, M.J., 2016. Construction contract law. Macmillan International Higher Education.
United Kingdom.
Arvind, T.T., 2017. Contract Law. Oxford University Press. United Kingdom.
Smits, J.M. ed., 2017. Contract law: a comparative introduction. Edward Elgar Publishing.
United Kingdom.
Stone, R. and Devenney, J., 2017. The modern law of contract. Routledge. United Kingdom.
Taylor, D. and Taylor, R., 2017. Contract Law Directions. oxford university press. United
Kingdom.