Legal Contract and Negligence Law: Analysis of Case Scenarios

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Contents
Solution......................................................................................................................................2
Solution (a).................................................................................................................................2
i)..............................................................................................................................................2
Issue....................................................................................................................................2
Relevant law.......................................................................................................................2
Application of law..............................................................................................................2
Conclusion..........................................................................................................................3
ii).............................................................................................................................................3
Issue....................................................................................................................................3
Relevant Law......................................................................................................................3
Application of Law.............................................................................................................3
Conclusion..........................................................................................................................3
Solution (b).................................................................................................................................3
Issue....................................................................................................................................3
Relevant Law......................................................................................................................4
Application of Law.............................................................................................................4
Conclusion..........................................................................................................................6
Bibliography...............................................................................................................................7

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Solution
Solution (a)
i)
Issue
Whether there is a legal contract amid Amy and the supermarket?
Relevant law
A legal contract is the combination of several elements which consists of an agreement (an
offer plus and acceptance), legal consideration, party’s capacity and the intention of the
parties. (Fisher & Greenwood, 2011)
An offer is the prime essential which starts the formation of the contract. The offeror when
transfers his intention either orally or by words or conduct to the offeree with the belief of
approval, then, such an act is an offer. An offer can be to specific person or to the world and
is held in (Carlill v Carbolic Smoke Ball Company , 1892). The confirmation of the offer by
the offeree is an acceptance in law (Felthouse v Bindley, 1862). (Fisher & Greenwood, 2011)
At times, the party does not wish to make an offer but desirers to receive offers. Such acts are
called invitation to treat. The inviter with the help of advertisements, tenders, auctions, etc,
may invites people from the public to make an offer to him (Partridge v Crittenden [, 1968).
The inviter then acts like an offeree and if gave his approval to such offer results in the
formation of a contract with such offeror. In, (Pharmaceutical Society of Great Britain v
Boots Cash Chemists , 1953), the display of goods in the shop is considered to be an
invitation to treat and any person who wishes to buy the displayed products must pick them
up and bring them to the counter. This act is an offer from the intended buyer. If the cashier
accepts the offer of the buyer then there is a contract otherwise there is no binding contract
amid the two. (Mau, 2010)
Application of law
Amy visits the great supermarket to buy the groceries. The groceries are placed at the shelf.
She picks the same and fills her basket. Now, as per (Pharmaceutical Society of Great Britain
v Boots Cash Chemists , 1953), the display of goods is an act of invitation and thus the
display of groceries by the supermarket is just an invitation that is made. So, Amy must make
an offer to the supermarket to buy the same and if the supermarket accepts the offer then
there is a contract amid the two.
But, Amy when approached the cashier she receives a call from her secretary and she has to
reach to her boss immediately. She puts down the products and wanted to leave. It is
submitted that Amy only has picked up the groceries but she has not made any offer to the
cashier to buy the products.

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Thus, the cashier cannot confirm the offer unless the same is received to him. Since there is
no offer made by Amy thus there is contract amid the two.
Conclusion
There is no offer that is made by Amy to the supermarket. Thus, there is no binding contract
amid the two.
ii)
Issue
Whether Amy is obligated to sell her I phone X to Bell?
Relevant Law
An offeror makes an offer to the offeree wherein the offeror either by conduct, orally or in
written form communicates his intention to the offeree to undertake any act or omission or
hopes that the same will be affirmed by the offeree and is held in (Carlill v Carbolic Smoke
Ball Company , 1892). The offeree when gave his approval to the offeror terms without
bringing any changes to the same then it is termed as an acceptance in law. (Fisher &
Greenwood, 2011)
Many a times, the offeror when makes an offer then he gave a time span within which the
offeree must gave his approval. It is necessary that it is obligatory upon the offeree to gave
his accept within the said time span, otherwise the offer is lapsed by lapse of time. (Chui &
Roebuck, 1991)
But, it is not obligatory upon the offeror that he must wait for the approval of the offeree. The
offeror is free to make a contract with any other party provided there is approval received
from the offeree. However, if the offeree has made any consideration to hold the offer open
for him for a particular time span. Then, the offeror is not permitted to establish any contract
with the third party unless the time lapses (Chui & Roebuck, 1991)
Application of Law
Amy is wishing to sell her I phone X to Bell for HK $500. Amy keeps the offer open for five
days. Thus, it is obligatory upon Bell to give his confirmation within such periods of five
days in order to make a valid contract with Amy. But, there is no consideration that is moved
from Bell to make sure that Amy does not sell the pone to any third party. Thus, after two
days Amy sold her phone to Cyril for HK $600. Amy is not obligated to not to sell the phone
to any other party before the expiry of five days as there is no consideration that is moved
from Bell to Amy. Thus, Bell has no contractual relationship with Amy.
Conclusion
Amy is empowered to sell the phone to Cyril as there is no contract that is made amid Amy
and Bell.