CONTRACT LAW Case Study: Satellite Pty Ltd - Offer and Acceptance

This case study delves into the core principles of contract law, specifically examining the concepts of offer, acceptance, and agreement within the context of a case involving Satellite Pty Ltd. The analysis explores the legal validity of an offer, the conditions for valid acceptance, and the requirements for a legally binding agreement. It references relevant legal precedents and emphasizes the importance of clear communication and intention in contract formation. The case study also addresses the circumstances under which an offer can be cancelled and the implications of silence in acceptance. The provided solution examines how the company's actions regarding the CD sales and consumer behavior relate to the formation of a contract. Finally, it concludes that while an offer may exist, a formal agreement, as a legal document, is missing, thus impacting the existence of a valid contract.

Running head: CONTRACT LAW
Case of Satellite Pty Ltd
Name of the student:
Name of the university:
Author note

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Table of Contents
Introduction:...............................................................................................................................2
Answer to question no. 1:...........................................................................................................2
Valid offer:.............................................................................................................................2
Cancellation of offer:..............................................................................................................3
Answer:...................................................................................................................................3
Answer to question no. 2............................................................................................................3
Acceptance:............................................................................................................................3
Answer:...................................................................................................................................4
Answer to question no. 3............................................................................................................4
Agreement:.............................................................................................................................4
Reference:..................................................................................................................................6

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Introduction:
The present case is based on the law regarding the Contract Act. The subject matter of the
question is attracting the provision of offer and acceptance (McKendrick 2014). In the
provinces of Australia, the Commonwealth law has been applied and most of the provisions
of the Law are follow the law of England. Contract is a legal agreement and has certain
elements to fulfil the character of contract. In almost every country’s law, the elements of
contract are common in nature. The first requirement regarding the contract is that it should
comprised of offer and acceptance (Poole 2016).
Answer to question no. 1:
Valid offer:
Offer is a proposal made by a person who has a will to make a contract with others regarding
certain materials. It can be stated that the party should has intention regarding the making of
contract. However, the contract is only formed when the other person or party accepts the
offer (MacQueen and Thomson 2016). The nature of an offer is quite different from the
nature of willingness or negotiation. It is stated under the law that the offer should be legally
valid to attract the provision of contract. Therefore, it is clear from the facts that those offers
cannot be treated as contract if they are not legally inbounded. It has also been mentioned
under the law that it is not necessary that the offer has to be made to a specific person. It is a
fact that when others accept the offer, it becomes contract. However, there is a provision that
gives the offer maker an opportunity to uphold the other party has accepted the offer before
the same. It is required that the offer maker should communicate with the other party
regarding his willingness about the offer.

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Cancellation of offer:
Therefore, from the above discussion it has been cleared that offer is an indication to make a
relation with the other person by way of acceptance regarding the same or refraining from
doing anything. It has been mentioned under the law that if the person to whom the offer has
been made rejects the same, the offer can be cancelled (Kötz 2017). In this case, there should
be clear expression regarding the offer. If the offer could not be accepted within the stipulated
period, the offer can be cancelled in that excessively. If there is a situation cropped up, where
the offer maker died before the acceptance of the same, the offer will be treated as revoked.
Even the action of the parties can also make the contract revoked.
Answer:
In this case, it has been observed that the company has expressly made an offer to the
consumer regarding the way of use the CD and the payment regarding the same. It was
mentioned clearly and the nature of the offer was legal. Therefore, it can be stated that in this
case, the company has made a valid offer. It has been observed in Carlill v Carbolic Smoke
Ball Co that if an offer has been posted on the newspaper, it can be stated that the offer has
been made to the world at large. Therefore, it can be stated that the company has made a valid
offer.
Answer to question no. 2
Acceptance:
When the person to whom the offer has been made has accepted the offer of the maker, the
same is regarded as acceptance. An acceptance is made with certain considerations. It has
been stated under the law that the acceptance will be valid if the matters that are accepted
covers the whole thing as per the offer. It is to be noticed that the subject matter of the
acceptance is legally valid (Andrews 2015). The offeree should accept the offer expressly to

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the offer maker. It is not mandatory that the offer should be accepted anyhow. There shall be
certain times specified regarding the same and the acceptance shall be taken place within that
period.
It was held in McGlone v Lacey 288 F. Supp 662 that silence could not be held as
acceptance until his gesture constitute the will of acceptance to the offer maker.
Answer:
It can be stated that the in the case the company has been made an offer to the consumers and
the same will be presumed to be accepted when the consumers will buy the same and started
to use the same with certain positive mentality. It has been clearly mentioned in the cover
page of the CD regarding the terms and conditions of the same and it have been stated that all
the consumers who wanted to use the same should maintain the same. Therefore, it can be
stated that the consumers who will buy the CD or use the same will accept the offer.
Answer to question no. 3
Agreement:
An agreement is a legal document that has been made between two parties and where
the rules regarding the offer and acceptance of the contracted subject matter has been
mentioned. It is required that all the terms and conditions of the contracted subject matter
should be clearly mentioned in the agreement. It has been stated under the law that the offer
must be made to the person and the same should have to be accepted by the other party and
the base of the subject matter should be legal in nature (Teggeler et al. 2015).
It is to be noted that the nature agreement should be legal to attract the provision of
the contract. Therefore, it can be stated that all the contracts are agreement but not all the
agreements are contract. An agreement is stated as the meeting of mind regarding the two

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persons regarding the terms and conditions of the offer and acceptance. It is also to be stated
that in the agreement, there shall be an existence of reciprocal duties in between the offer
maker and the offeree.
However, in this case, it is true that offer has been made and the same will be
considered as acceptance if the consumers will be agreed to buy the product, but there is no
agreement has been made, as there is no existence of any legal document.

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Reference:
Andrews, N., 2015. Contract law. Cambridge University Press.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
Greenwood, C.M., Forest, M., Voisin, G., Gaudreau, H., Kobor, M., MacIsaac, J., McEwen,
L.M., Van IJzendoorn, M.H., Meaney, M.J. and O'Donnell, K.J., 2016, November.
Agreement in DNA Methylation Levels from the Illumina 450K Array, Across Batches,
Tissues and Time. In GENETIC EPIDEMIOLOGY (Vol. 40, No. 7, pp. 639-640). 111
RIVER ST, HOBOKEN 07030-5774, NJ USA: WILEY-BLACKWELL.
Kötz, H., 2017. European contract law. Oxford University Press.
MacQueen, H. and Thomson, J., 2016. Contract law in Scotland. Bloomsbury Publishing.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press
(UK).
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Teggeler, M., Schmitz, M., Fink, A., Jansen, J.A. and Pisters, M.F., 2015. Reliability and
Agreement of Ultrasonographic Thickness Measurements of the Common Lateral Extensors
of the Elbow. Ultrasound in medicine & biology, 41(6), pp.1592-1598.