Laws1018 | Question and Answer

Law1018
12/23/2019
Student’s Name

Laws1018 1
Contents
Question 1........................................................................................................................................2
Issue.............................................................................................................................................2
Rules.............................................................................................................................................2
Application...................................................................................................................................3
Conclusion...................................................................................................................................4
Question 2........................................................................................................................................4
Issue.............................................................................................................................................4
Rules.............................................................................................................................................4
Application...................................................................................................................................5
Conclusion...................................................................................................................................6
References........................................................................................................................................7

Laws1018 2
Question 1
Issue
Whether a contract of sale of the MacBook Pro has developed between Nicole and Rob?
Rules
For every valid contract, some factors need to exist in the dealings of parties, which are known
as essentials of contract. The very first requirement states that there should be an agreement. The
first essential is an offer that reflects a proposal. One party, (offeror) needs to make a clear
proposal to other (offeree) where the same make a promise to do something or not doing so in
return of particular exchange value. Similar to an offer, another term is also there which is quite
similar. This term is known as an invitation to treat. An invitation to treat is addressed to many
people and terms of the same are not as specific and clear as an offer. In reply to such an
invitation, the other person needs to make an offer that should contain clear terms. Further, to
develop an agreement, the consent of another party is necessary. It means when a person makes
an offer to others then the other person requires providing his/her acceptance to the same to
agree. In the case of "Powell v Lee (1908) 24 TLR 606", it was held that silence cannot be
considered as a valid consent under contract law (Turner, 2013). It means an offeree needs to
communicate the same to the offeror. Another important rule says that the terms of consent must
be similar to the offer. If there is any variation in the terms mentioned under offer and accepted
by offeree, then such consent does not consider as valid and such communication is treated as a
counteroffer. As soon as a party makes a counteroffer, all the previous offer in a transaction
becomes cancel and unavailable.
In the case of Goldsborough Mort & Co Ltd v Quinn (1910) 10 CLR 674, the claimant paid some
money to the defendant and asked to keep the offer open for him till a particular time but the