Assignment 1 – M1
Analyse the impact of the requirements for a valid contract in a given situation
Aled, aged 19, decided he wanted to set up in business. He was planning to buy and sell items both on the internet and by mail order. Aled agreed with his father, Brian, that they would convert a spare room in the family home into a ‘business centre’ with telephone lines, internet and fax facilities and a selection of office furniture and equipment. Aled then entered into the following agreements.
Having acquired 1000 pairs of famous brand-name jeans through an internet auction site, Aled placed an advert in a newspaper ‘offering’ the jeans at £9.95 each. Unfortunately, this was a misprint, ...view middle of the document...
He also unexpectedly received some orders by fax, even though his fax number had not been printed in the advert. Aled responded to the orders as quickly as he could, either despatching the jeans or, when he had run out of packaging, sending a confirmation slip promising delivery within 28 days.
Read the following scenario and answer the questions below;
Task 2 will allow you to provide evidence of M
Discuss Aled’s contractual liability in relation to the sale of the jeans, in the following circumstances.
(i) Clarice has insisted that she is entitled to buy a pair of jeans for £9.95, as that was the original price in the newspaper. Don, who responded to the advert by post as required, has not been supplied with a pair, as Aled is now out of stock.
An offer is a proposition from one person to another. A court will only recognise an offer as being valid if it is capable of being accepted. The following situations are not offers; Items on display in shops - Fisher v. Bell (1961), advertisements of items for sale in newspapers, magazines or catalogues and auction sales – Payne v. Cave (1789). These are not offers but invitation to treat. An example of an offer would be a Reward Posters. This rule was developed by a very famous case called Carlill v. Carbolic Smoke Ball Co. (1893). An offer may cease to exist under any of the following circumstances; where an offer states that an offer will remain open for a specific length of time, it lapses when that time is up, where the offeror has not specified how long the offer will remain open, it will lapse after a reasonable length of time has passed, some offers are made subject to certain conditions and if such conditions are not in place the offer may lapse, an offer lapses when the offeree rejects it, a counter offer terminates the original offer (a request for information about an offer does not amount to a counter offer, so the original offer remains open) and if the offeree knows that the offeror has dies the offer will lapse; if the offeree is unaware of the offeror’s death then it will not. By applying this to the case of Aled he is not contractually liable because he did not make an offer, he only made an invitation to treat like in the case of Patridge v. Crittenden (1968). So Clarice is not entitled to a pair of jeans for any price since no offer was made. An invitation to treat is different from an offer as they are an indication that a person is prepared to receive offers from another person. So Aled is open to an offer from Clarice, Clarice cannot demand that Aled sell her the jeans for a certain price. The person who is available to receive an invitation to treat can accept or reject the offer until the final moment of acceptance. An example of this is goods displayed in a shop with price tags attached, the customer has the right to make an offer to buy items within the shop but they can be rejected or accepted by the seller. This means that Aled also has the power...