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Contract Law Essay

1074 words - 5 pages

The existence of contract law is to prevent any sort of illegal behaviour, injustice and to clarify any confusion or misunderstanding amongst the offerror and the offeree. Everybody in this world is an offeree as we all purchase goods and services to meet our personal needs and if our expectations are not met, there is a problem which is why the contract is created for both parties to follow. However, if either of them fails to do so, then they are in breach of contract and the aggrieved party has legal rights that they can try and enforce. A contract is formed when there is an offer or acceptance. In this assignment I have been given a case to resolve and advise the parties whether they are ...view middle of the document...

In this case, Fred’s offer was unilateral contract as only Fred made the promise. Hence, The advertisement is not an invitation to treat as Invitation to treat is an indication the offerror is willing to negotiate but is not prepared to be legally bound whereas in the case of Fred v Peter, Fred is willing to be bound in an agreement with whoever pays him £100 for the lot as he has made an offer to a group of people. An offer is a definite promise to be bound provided certain specific terms are accepted.

However, the offer only takes place when it has been communicated to the offeree by the offerror. An offerror is a person who presents something for either acceptance or rejection whereas the offeree is the person who accepts or rejects something being sold by the offerror. In Fred’s case, his offer is valid as he communicated his offer to the world in his advertisement. Once the offer has been made and communication has taken place the contract is merely concluded when acceptance takes place. According to the mirror image rule acceptance must match the offer. Acceptance is defined as an unconditional assent to all the terms of the offer.

Judging by the details given on the advertisement, Fred is in breach of contract as Peter complied with the terms of the advertisement by being the first one on the sale date and offering the stated purchase price. This can be linked with the case of Lefkowitz v Great Minneapolis Surplus Store, (1957) where Great Minneapolis Surplus Store (D) published an advertisement in the following terms: ‘‘Saturday sharp: 3 brand new fur coats, worth to $100. First come first served. $1 each.’ Lefkowitz (P) was the first customer to offer the one dollar price per the terms of the advertisement but the defendant refused to sell the sale items to Lefkowitz and said to him that the offer was intended for women only. However, it was held that the advertisement was an offer Lefkowitz was entitled to performance by the defendant because he abided the...

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