Surrey University LAW2: Evaluating Contract Law Agreement Validity

This case study delves into the principles of contract law, specifically focusing on the validity of agreements between parties. It evaluates three distinct scenarios involving Fred and other individuals (Lottie, Sam, and Maria) to determine whether legally binding contracts were formed. The analysis centers on key elements such as offer, acceptance, and the distinction between an offer and an invitation to treat, referencing relevant case law like Partridge v Critenden. The study concludes that while the agreements with Lottie and Sam were not valid due to the absence of a clear offer and acceptance, the agreement with Maria constituted a valid contract due to Maria's counteroffer and Fred's subsequent acceptance via post, despite the letter not being received. The study also emphasizes the importance of clear communication and understanding of contract law principles for forming valid agreements. Desklib provides similar solved assignments and past papers for students.

CONTRACT LAW

Table of Content
Introduction......................................................................................................................................3
Validity of contract..........................................................................................................................3
Evaluation of agreement among parties..........................................................................................4
Case 1 Fred and Lottie.................................................................................................................4
Case 2 Fred and Sam...................................................................................................................5
Case 3 Fred and Maria.................................................................................................................5
Recommendations for forming a valid contact................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
A contract is a voluntary and legally binding agreement within two or more parties. Contractual
agreements are lawfully enforceable because it is duly approved and supported by the
requirements of the law ( Kovac, 2018). In agreement following transactions can be involved for
example services, money, exchanges of goods or promises of any of it. In case the contract in
breached by any of the party then the law is supposed to award the injured party to access the
lawful remedies to compensate for damages due to cancellation. In the present study, agreement
among the parties has been evaluated to determine its validity and legal enforceability. The study
will consider whether there was a presence of contracts among the parties or not; this will be
evaluated by considering whether or not there is the existence of essential elements of contracts.
The study is supported by key facts, justifications and cases to research at a valid conclusion.
Validity of contract
As per the w for making the contract, an agreement mainly needs an offer consideration, mutual
intent to be bound and acceptance. Every party should have the capability to enter into a
contract. Even though when there are oral contracts they are also legally binding.
In accordance with the law, for making a contract, the offer and acceptance are the two most
essential elements. The contract should be made by the person’s willingness or with the intention
of entering the binding agreement by law (Cartwright, 2016). When an individual wants to enter
into a contract with its own will on certain terms and mean to form a binding contract, and if the
party agrees upon the term, then such expression of readiness is known as an offer .
An invitation to treat is just an announcement of readiness to go into discussions; it is not an
offer, and this cannot be established in the form of a binding contract. Invitation to offer is a step
initiated before an offer. In this process one person encourages another person to make an offer
to him that is called an invitation to treat. In a situation where the other parties react upon the
invitation to treat than it will be considered as the offer(Little, 2017). The invitation is made to
the general public with the intention to receive offers and discuss the conditions on which the
contract is made.

For explaining the concept of invitation to treat a case study is summarized below namely
Partridge v Critenden (1968). In this case, Partridge has placed an advertisement in the magazine
“Cage and Aviary Birds”, beneath “Classified Advertisements”, in which following words were
enclosed Quality British Bramblefinch cocks and hens 25 shillings each.
He was sued for acting against s. 6(1) of the by offering for sale a live wild bird.The court stated
that the words ‘offer for sale’ will be considered in the same way as there were considered in the
case of Fisher v Bell. An advertisement is similar to a display of goods in a shop window for sell,
therefore, these are an invitation to treat, not an offer (Howells, 2017).
A counter offer is a suggestion which is made as a result of an unwanted offer. In the counter
offer, initial offer is modified, and it is made more attractive for the person who is making a
revised offer(Hodge, 2017). As this offer comes into consideration, the previous offers get a
decline, and it allows the discussions to continue the revised offer.
The offer or acceptance by the person can be expressed in various forms, for example, email, fax
and letter or through any other suitable manner. It is important for an individual to communicate
the terms on which he is ready to enter within a contract (Grossi, 2015) . If an individual is
agreed on all the terms of an offer made to him and there is not any counter- situation, then the
statement of such agreement to the offerer is known as acceptance.
Evaluation of agreement among parties
Case 1 Fred and Lottie
As per the case study, the agreement within Fred and Lottie was not valid. The advertisement
given by Fred is an invitation to treat not an offer. It is important to make a difference between
the offer and an invitation to treat. Offers direct towards the binding contracts on parties and on
the other hand invitation to treat cannot be accepted as it is considered just an invitation of the
offer (Knapp, Crystal and Prince, 2019). As per the case of, Partridge v Critenden (1968) 2 All
ER 425 the Fred has presented an invitation to treat, and the offer does not exist till it get
specified by the other parties, therefore the agreement is not completed as Lottie has sent the
voice mail which was not received and confirmed by the Fred. Consequently, in this situation,
the acceptance doesn’t take place on the performance of the condition.

Case 2 Fred and Sam
The advertisement done by Fred is an invitation to treat and not an offer. The agreement is not a
binding agreement. As per the case law Partridge v Critenden (1968) 2, All ER 425 invitation of
treat does not have legal acceptance similar to offer. Further, in this case, terms in the invitation
are not accepted by Sam as there was a change made by the offeror in its advertised amount. In
other words, it can be said that an individual who is making the invitation to treat does not
suppose to bind the other person through the offer. As the amount of product is changed by the
individual, the opinion of the seller can be changed and the major reason behind it that Fred is
not legally bound to sell a product as there was not binding contact between them. Further, in the
given case there was just an advertised invitation, and same can be rejected if terms are not
suitable or parties are unhappy with them. Acceptance of an offer only takes place when the
actions are taken according to the situation. By applying the cited approach, in the given case
scenario, the agreement within Fred and Sam is not valid as the acceptance was not provided.
Case 3 Fred and Maria
In the third case agreement within Fred and Maria is a binding contract. Fred has raised its
product prices, and on the other hand, Maria was not satisfied with the terms, and she offered
another price that offered price can be considered a counter offer. The counter offer is made
when an offeree take actions to an offer by changing the present offer and making it on other
terms, which diminish the original offer with the intention that it will not stay open for future for
an offeree to accept(Whittaker, 2016). The case clearly defines the offer which is given by Maria
to Fred, and this offer is given upon the offer which is known as counter offer. Further, Fred had
agreed on the terms set by Maria and sent a letter to her, but there was the postal strike, and the
message is not received by her. In that case, the acceptance would be valid, and there would be a
binding contract within the parties because as per the postal rule in the situation. As per this rule,
in a situation where the message is sent with the help of postal services with appropriate terms, in
that case, the acceptance would be valid and can be charged as a binding contract.
Postal rule is applied when the parties will use the post services for communicating the message
(Brownsword, Van Geste land Micklitz, 2017). This rule clarifies that if the letter is
appropriately stamped and addressed and when the letter is placed in the post box then the

agreement will take place. Same has been cited in the case of Adams v Lindsell (1818) 106 ER
250.
Recommendations for forming a valid contact
Parties are required to consider that an agreement is valid only if there are clear offer and
acceptance. Further, it is important to differentiate among offer and invitation to offer. Parties are
required to clearly communicate while offering regarding the terms associated with the
performance. In the first two cases, acceptance was not there as respondents of advertisements
were the offerors for which acceptance of Fred was essential; therefore there was no contract
among parties. In the third instance, both offer and acceptance were there which had formed a
valid contract.
Conclusion
The present study shows that the advertisement presented is an invitation to treat and it cannot be
considered as an offer until the request is clearly specified. In the first two cases, there was an
absence of clear offer and acceptance. However, in the third case, there was a clear offer by
Maria and the same was accepted by Fred through the post. Therefore, both parties are legally
obliged to provide performance.

References
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. ed 1. Bloomsbury Publishing, United Kingdom.
Grossi, R., 2015. Understanding law and emotion. Emotion Review, 7(1), pp.55-60.
Hodge, P.S., 2017. Judicial Development of the Law of Contract in the United Kingdom. Geo.
Wash. L. Rev., 85, p.1587.
Howells, G.G., 2017. The European Union's Influence on English Consumer Contract Law. Geo.
Wash. L. Rev., 85, p.1904.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2019. Problems in Contract Law: cases and
materials. ed.1. Wolters Kluwer, United Kingdom.
Kovac, M., 2018. Frustration of purpose and the French Contract Law reform: The challenge to
the international commercial attractiveness of English law?. Maastricht Journal of European
and Comparative Law, 25(3), pp.288-309.
Little, T., 2017. The Contract (Third party Rights)(Scotland) Bill: Resetting the Law. Juridical
Review, 2017(Part 3), pp.187-194.
Whittaker, S., 2016. Distinctive features of the new consumer contract law. Law Quarterly
Review, 133(1). pp.19-21.