Contract Law Scenarios Analysis

The assignment presents three distinct legal scenarios concerning contract formation. It analyzes the validity of offers, acceptances, and counter-offers in situations involving advertisements (Footloose Pty Ltd), fax communications (Famous Footwear and Simone), and mail correspondence (James and Simone). The analysis draws upon key legal principles and case precedents to determine the presence or absence of a binding contract in each scenario.

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Cover Page
Name of the student
Student ID
Word count

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Contents
Questions 1..................................................................................................................................................3
Issue........................................................................................................................................................3
Law..........................................................................................................................................................3
Application..............................................................................................................................................3
Conclusion...............................................................................................................................................4
Question 2...................................................................................................................................................4
Issues.......................................................................................................................................................4
Law..........................................................................................................................................................5
Application..............................................................................................................................................5
Conclusion...............................................................................................................................................6
Reference List.............................................................................................................................................7

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Questions 1
Issue
What is the contractual position of University of Millennia with Greenland, Enviro and Plant
Forever?
Law
To make a valid contract, two or more than two parties must make mutual exchange of promises
(offer and acceptance) with an intention to be binding by the contract along with an exchange of
some kind of benefit (consideration). (Gibson & Fraser, 2013)
The first ingredient to make a contract is an offer. An offer is a kind of proposal which is made
by an offeror to an offeree through which he states his desires which he intends to be undertaken
by the offeree. An offer should come in the awareness of the offeree to make it valid in nature
(Carlill v Carbolic Smoke Ball Co (1893). (Clarke, 2012)
When the offeree after the receipt of the offer, acknowledges the same and give his approval then
it is an acceptance in law (Crown v Clarke (1927).
But, when the person does not make any kind of offer but invites offers from the public and he
himself acts like an offeree then it is act of invitation to treat. In an invitation, no offer are made
rather offers are invited. Tenders are normally construed to be an invitation to treat. But, in the
leading case of Blackpool & Flyde Aero Club v Blackpool Borough Council Court of Appeal,
the council has invited tenders and which must be submitted by the intending parties within a
specific time. The Plaintiff has submitted the tender before the due date but because if the error
of the council the tender was considered to be later and was not considered. It is submitted by the
court that considering the expenses and labor that are incurred in preparation of the tender and
when the procedure set out by the inviter is clear, it is not right in construing such acts as an
action of invitation, rather, the invitation of tenders must be construed as an offer which is deem
to be accepted when the tenders are provided by the interested party within the stipulated time
frame. (Clarke, 2012)
Application
The facts submit that the University of Millennia has invited tenders for the supplies of green
seed for its surrounds. The last date for the submission of the tender was submitted to be 1st June.

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It is submitted that the tenders are not considered as an offer. Rather, they are treated as an
invitation to treat. Thus, the tender requirement by the University of Millennia should be treated
as an invitation to treat and any person who wants to seek the tender from the University of
Millennia must make an offer and if the same is approved by University of Millennia, then there
is a binding contract amid the parties.
But, it is submitted that by applying the law in Blackpool & Flyde Aero Club the tenders at time
construed as offers and if the requisite tender is supplied within the deadline then they are
nothing but deem acceptances.
Thus, the invitation by University is an offer and there are three acceptances that are received by
University, that is, by Greenland, Enviro and Plant Forever.
The due date is 1st June and any tender received before than is an acceptance.
Now, Grenland had submitted the tender on 29th May.
Enviro posted the tender on 15th May. Thus, it is an acceptance by post and is deem to be
complete at the time when it is posted. The letter is received on 17th but the assistant put in the
box and later forget about the same.
Plant Forever posted on 30th May and is complete when the letter is posted. but, the same is
received after 2nd June which is one day after the due date, thus, the tender is not valid. Also,
since the acceptance of Enviro is before Plant, thus, there is no binding contract with Plant.
So, it is the tender of Enviro which must be construed as validly accepted as the same is valid
when posted on 15th and again when received on 17th.
Conclusion
Thus, there is a valid contract that existed amid the University and the Enviro.
Question 2
Issues
The legal effect of forms of correspondence between Footloose and Famous Footwear and
James’s Shoes?

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Law
To make a valid contract the main essential are offer, acceptance, consideration, legal intention
and capacity of the parties. (Gibson & Fraser, 2013)
An offer is the intention of the offeror which is sent to an offeree wherein the offeror desires that
his intended acts and mission must be comply with by the offeree. When the offeree gave his
approval to the terns of the offer then it is an acceptance(Smith v Hughes (1871). An acceptance
should correspond to the terms of the offer in order to hold it valid in law. If any variation is
made to the offer term then it is counter offer which revoked the original offer Hyde v Wrench
(1840).
An acceptance when made must come in the awareness of the offeror in order to make it binding.
When an acceptance is made through email then the acceptance is complete when the mail
reached he mail box of the offeror and it makes no difference whether the acceptance is read by
the offeror or not (Entores Ltd v Miles Far East Corporation [1955]. (Hill, 2001)
Also, an offer is different from an invitation. In an invitation, offer is invited and when the
inviter accepts the offer then there is an acceptance. In Partridge v Crittenden [1968], an
advertisement is construed to be an invitation.
Application
An advertisement is placed by Footloose Pty Ltd on 1st October in the Daily news paper.
Footloose submitted that they are intending to sell sling back sandals and wedge heels @ $2000
per hundred pairs. As per Partridge v Crittenden the advertisement by Footloose is an invitation
and any person who is interested must make an offer to Simone.
Famous Footwear
Now, on 2nd October, Famous Footwear sent a fax to Simone wherein it submitted that they are
accepting the offer made in the advertisement and intend to order 500 pairs @ 2000 per hundred
But, since an advertisement is an invitation, thus, Famous must make an offer to Simone. Rather,
there is no offer, on the contrary there is an acceptance that is made by Famous. There cannot be
any acceptance unless there is no offer.

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Since there is no offer so the acceptance by Famous is invalid.
James
On 4th, James sent a fax to Simone.
James submitted that they intend to purchase 2000 pairs of slingback sandals @ $30,000
including GST and delivery.
Now, against the invitation of Simon, James has sent an offer.
If Simon accepts the offer of James then there is a binding contract amid the parties.
Now, Simon on 7th sent a fax to Jams wherein she submitted that she is willing to sell 2000 pairs
of slingback sandals @ $30,000 but excluding delivery. Also, that Payment must be made by
cash or bank cheque.
It is submitted that the acceptance made by Simone was not the mirror image of the offer of
James as Simone vary with the offer terms made by James.
Thus, the acceptance is invalid and is rather a counter offer which if accepted by James will
result in contract amid the parties.
Against the fax of Simone, James on 8th mailed to Simone that he is willing to accept the terms
that are sent by Simone though fax.
Thus, as per Entores Ltd, an acceptance by mail is valid when the same is received on the
mailbox of the receipt regardless the same is read or not.
Since James has accepted the terms of Simon thus the acceptance is in compliance with the offer
and there is valid contract amid the two
The request of delivery date is not variation.
Conclusion
Thus, there is a valid contract amid James and Simone when the mail is sent by James on 8th .

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Reference List
Books/Articles/Journals
Gibson & Fraser (2013) Business Law 2014, Pearson Higher Education AU.
Simon Hill (2001) Email Contracts - When is the Contract Formed?" [2001] JlLawInfoSci 4
Case laws
Blackpool & Flyde Aero Club v Blackpool Borough Council Court of Appeal [1990] 3 All ER
25.
Carlill v Carbolic Smoke Ball Co (1893).
Crown v Clarke (1927).
Entores Ltd v Miles Far East Corporation [1955]
Hyde v Wrench (1840)
Partridge v Crittenden [1968]
Smith v Hughes (1871)
Online Material
Julie Clarke (2012) Australian Contract Law – Agreement (online). Available at:
https://www.australiancontractlaw.com/law/formation-agreement.html. (Accessed on 6th
October 2017).