Contract Law Analysis: Offer and Invitation to Offer - BSBLEG415

This assignment analyzes the legal concepts of offer and invitation to offer within the framework of contract law, referencing the Australian legal system and relevant case laws such as Brambles Holdings Limited v Bathurst City Council and AGC (Advances) Ltd v McWhirter. The assignment explores the essential elements of a contract, including agreement (offer and acceptance), consideration, intention, certainty, and capacity, applying these principles to a case scenario where a managing director advertises a plasma television at an incorrect price. It concludes that the advertisement constitutes an invitation to offer, not an offer itself, and that no contract was formed between the customer and the company due to the sales assistant's correction of the pricing error. The document demonstrates an understanding of contract law principles and their practical application in resolving contractual disputes.

Matter: [Insert name] Matter
no.: [Insert no.]
Attendance
on: [List name/s]
Attendance
by: [List name/s]
Date: [Click to select date] Time: Duration: [No. units]
Details:
a) The instant case is related to offer and invitation to offer in contract. To
form an offer, there must be an intention to create a contract. It means
the willingness of the party to enter into a valid contract with a particular
person or class of persons as seen in the case of Brambles Holdings
Limited v Bathurst City Council [2001] NSWCA 61, Court of Appeal
(NSW). Invitation to offer means inviting someone unknown in public to
make a proposal in response to the invitation.
b) Contract: A contract is said to be an agreement that is legally binding as
well as it controls the rights and duties of the parties to the agreement. It
is said to be a promise or group of promises which is binding legally on
the parties to it. The elements are consideration, agreement, intention,
certainty and capacity.
The agreement consists of offer and acceptance as seen in R v
Clarke [1927] HCA 47, (1927) 40 CLR 227. Consideration is the
second element of contract which can be anything from money to any
service as seen in Woolworths Ltd v Kelly (1991) 22 NSWLR 189. In
addition to this, the parties must possess the capacity of entering the
contract. Mentally impaired persons, drunks or minors lack the capacity.
L+CL / File Note / 1
Created: 18-09-2015 // Updated: 3-01-2025

The parties also must possess the intention to create a legal relation in
contract as observed in Helmos Enterprises Pty Ltd v Jaylor Pty Ltd
[2005] NSWCA 235, Court of Appeal (NSW). Lastly the agreement
must be certain.
c) As per the facts of the case, Robert, the managing director advertised in
catalogue that a plasma television is for 200 $ instead of 2000$. This
denotes an invitation to offer and not an offer as this is made not to any
particular party but to the public in general as observed in case of AGC
(Advances) Ltd v McWhirter (NSWSC, 1977).
Tom collected one of the catalogues and seeing the advertisement
went to the store and asked for the television. Thus it is seen that no offer
is made. When Tom asked for the television, it amounts to an offer. But,
the sales assistant told him that there was a mistake in the printing the
catalogue and denied to give it for 200$. Hence, no contract was formed
between Tom and Rosella Ltd. Thus if he takes any legal step against the
company, he may not be successful as there was no contract.
d) In order to locate and analyze the instant case, firstly the topic of contract
has been understood from the course materials. Then, we understand the
elements of contract; from there offer and invitation to offer are also known. By
referring the case laws and the Australian Contract law, the facts of the case are
known and issued are answered.
L+CL / File Note / 2
Created: 18-09-2015 // Updated: 3-01-2025