Australian Contract Law: Offer, Acceptance, and Liability

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Business and Corporate Law

Introduction
– Both business and corporate
law assist in assessing the
rights and obligations of the
parties of the contract.
– This law also assist in
assessing the remedies
available in the commercial
transactions.
– It also examine the business
circumstances by assessing
the Corporate and contract
law of Australia.

Part A
• Issue – In this case, the issues
is whether Ming believes for
no further obligation after
withdrawal of offer.
• Rule- As per the Australian
Contract Law, the invitation
to treat is an offer made by
the party and becomes
contract only if advertising
party accept the contract
(Andrews, 2015).

Continue…
Applicability
• Forty customers are not legally liable
for the contract enforcements as in
invitation to an offer seller is not
bound to sell the products.
• Ten customer who are not in the
possession of the advertisement arte
not liable for the contract enforcement.
• Yes Ming can argue in an invitation to
an offer for insufficient amount for the
performance of the promise.
Conclusion
• With this, it concludes that invitations
to treat not bound for the acceptance.

Part B
Issue
• Who is liable for the payment
of table cloths supplied by Irish
Linen Ltd to Mater Plate?
Rule
• Pre incorporation contracts are
entered into by the promoters of
the company (Haldane, 2015).
• Before incorporation of the
company
• Can be ratified by the company
after incorporation.

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Applicability
• As per the given case in the
scenario, Adam orders restaurant
quality cutlery by signing and
affixing the company seal.
• The table cloths that have been
delivered by the Irish Linen Ltd to
Master plate.
Conclusion
• In this case, it is assume by the
Cravers Pty ltd that the Adam has
the rights to sign and affix the
company seal on the contract as a
company director.

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• Further, the table
cloths supplied by
Irish Linen Ltd to
Master Plate where
the company is not
liable for the
promoters contract.
• If the company want
to enter into the
contract can ratify or
create new contract.

References
• Andrews, N. (2015). Contract law. Cambridge
University Press.
• Haldane, A. (2015, May). Who owns a
company?. In Speech, University of Edinburgh
Corporate Finance Conference, May 22nd.
• Kraakman, R., & Hansmann, H. (2017). The
end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.