Master Of Professional Accounting

Running Head: MASTER OF PROFESSIONAL ACCOUNTING
Master Of Professional Accounting
Name of the Student:
Name of the University:
Author’s Note:

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MASTER OF PROFESSIONAL ACCOUNTING
Table of Contents
Part A.........................................................................................................................................2
Answer to the 1st question......................................................................................................2
Answer to the 2nd question.....................................................................................................4
Part B..........................................................................................................................................6
Answer to the 3rd question......................................................................................................6
Part C..........................................................................................................................................8
Answer to the 4Th question.....................................................................................................8

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MASTER OF PROFESSIONAL ACCOUNTING
Part A.
Answer to the 1st question
Issue
1. The advertisement for selling the coffee machine at a discounted price was an offer
from the Machine express Pty LTD. This has been done to attract more customers to
the store but fails to make the supply of the product which has been advertised.
2. The company or the advertiser has generated an offer to their consumer rather than
putting an invitation for buying the product.
Rules
3. Fails to act in accordance with ACL regulation as the company could not supply the
product to their customer. As per the Australian consumer law sec 35, the business
offering something to their customer must met the supply of the product1.
4. According to the ACL. Sec. 35, a business entity can give offer of selling product at a
lower price but this should state the inadequacy of the product while the product is not
available for sales.
5. The invitation can be recognised as the 1st stage of going into an offer. An offer is a
legal term where the company or the advertiser needs to identify the importance of the
offer and the legal obligations.
6. In any case the company does not seem to be capable of providing or supplying the
offered product then the company/Machine Express Pty LTD. would be considered as
responsible for breach of contract and ACL regulation.
1Weatherall, Kimberlee, "The Consumer As The Empirical Measure Of Trade Mark Law" (2017) 80(1) The
Modern Law Review

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MASTER OF PROFESSIONAL ACCOUNTING
Application
Understanding the issue and depending on the regulation this has been understood that
the lack of knowledge over the difference between contract and agreement has led the
company or the manager to breach the ACL regulation. As per the consumer Act. 2010 the
agreement has been formed after agreeing upon buying the half priced coffee machine and
the agreement has been converted into contract as the information has generated an offer and
promised through the advertisement2. There must have an evidence of a mutual intention
from all parties for the agreement to be legally enforceable.
The invitation has been a process of inviting on an offer while on the other hand the
offer refers to the proposal. This means inviting someone to make a proposal. Along with
that, the offer can be described as an intention towards entering into a contract which puts the
company or the advertiser in the position of obligation towards maintain the contract terms.
The offer represents an obligation towards the fulfilment of promise3. The invitation does not
put the advertiser or the company into the contract rather this just invites consumer with a
proposal. Hence, this can be identified as an offer, as the company has promised their
consumers to provide their product at a lower price, depending on the availability of the
product4.
2 Hu, Zhenyu and Wenjie Tang, "Size Matters, So Does Duration: The Interplay Between Offer Size And Offer
Deadline" [2018] SSRN Electronic Journal
3Koerner, Theodore G., "Contracts: Offer And Acceptance: Newspaper Advertisement As Offer To Sell" (1958)
56(6) Michigan Law Review
4 Legislation.gov.au, "Competition And Consumer Act 2010", Legislation.Gov.Au (Webpage, 2019)
<https://www.legislation.gov.au/Details/C2013C00620/Html/Volume_3#_Toc368657577>.