Law Assignment: Contract Law and Employment Law
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Added on 2020-05-28
Law Assignment: Contract Law and Employment Law
Added on 2020-05-28
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Running Head: LAW OF CONTRACT AND EMPLOYMENT Law of Contract and Employment Name of the student Name of the UniversityAuthor Note
1LAW OF CONTRACT AND EMPLOYMENTIssue The issue recognized with respect to the first question is to determine the contractual liability ofSimon in relation to Ali and Fernando. Rule In the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd1the court ruled that an offer and invitation to an offer are different from each other. An offer haslegal significance and on the other hand there is no legal validity of an invitation to an offer ortreat. It has been ruled by the court in this case that an invitation to an offer cannot be acceptedunlike an offer. Against an invitation to offer a valid offer has to be made which if accepted turnsinto a contract. However as discussed in the case of Carlill v Carbolic Smoke Ball Company2 whether astatement is to be considered as an offer or an invitation to treat is analyzed through undertakingan objective rather than subjective approach. According to the objective approach whether astatement is an offer or an invitation is identified by analyzing whether a reasonable personwould have been induced by the statement to form a contract. In the case of AGC (Advances) Ltd v McWhirter3 it had been ruled by the court thatadvertisements are generally considered as invitation to offer unless they are complete. Thismeans that they have all necessary elements to constitute an offer such as specification of goods,mode of payment, price and methods of delivery. According to the postal rule of acceptance as provided by the case of Adams v Lindsell4 anacceptance of the offer is said to be made as soon as the person to whom the offer has been madeposts the letter of acceptance with the correct address of the person making the offer. Theacceptance is successful irrespective of whether the letter reaches its destination or not. However according to the provisions laid down by the case of Entores v Miles Far EastCorporation5 the postal rule in relation to email acceptance have been slightly modified.1(1953) 1 QB 401; [1953] 2 WLR 427 (CA)2 (1893) 1 QB 256 (CA)3(1977) 1 BLR 94544106 ER 250; (1818) 1 B & Ald 681 (KB) 5(1955) 2 QB 327; [1955] 3 WLR 48 (CA)
2LAW OF CONTRACT AND EMPLOYMENTAccording to the case in situation where the acceptance has been made through email, theacceptance will be considered as complete when the email reaches the mailbox of the other partyrather than when it is sent. In the case of Hyde v Wrench6 it has been ruled by the court that an acceptance has to beabsolute in relation to the terms of the offer. In situation where there is any discrepancy inrelation to the term of the offer and acceptance than it results in a counter offer which brings theinitial offer to an end. Application It has been provided through the case study that an advertisement has been made by Simon inrelation to selling First edition of Lord of the Rings, signed by JRR Tolkienfor £7,000. In addition it was his email address and telephone number had been provided in theadvertisement. The advertisement has to be considered an invitation to an offer. This is becauseas per the objective test provided by Carbolic case any reasonable person seeing such anadvertisement would not be induced into a contract and would rather utilize the email andnumber to contact Simon. In addition as per the principles of the AGC (Advances) Ltd caseadvertisements which are incomplete are presumed to be invitations. According to the postal rule as provided by the Adams case the acceptance Fernando would bevalid as soon as the letter along with $7000 is sent by him to Simon. However there was no offerat all in the situation the acceptance cannot be considered as legally valid. Thus there is nocontractual liability owed by Simon to Fernando. However in relation to Ali makes an offer to Simon through email to purchase the book at $6500.The offer was rejected by Simon who made a new offer of selling the book at $7000 and a timelimit till 2200 till accept it. Ali in return accepts the offer through email. This is because it hasbeen provided by the Entores case that acceptance through email is completed when the emailreaches the mail box off the other person irrespective of whether they read it or not. Thus a validcontract has been formed between Ali and Simon.Conclusion 6(1840) 3 Beav 334 (Ct Ch)
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