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Contract Law Essay

2762 words - 12 pages

1.0 Introduction

Question stated that Billy saw a GEZZ watch and want to buy it. He walks in the shop and asked the shop owner is the watch made in Switzerland. The shop owner not sure but due to he wanted to sell the watch and told Billy it is made in Switzerland. Billy bought the watch and went home. He realized that the watch was actually made in China and he went back to the shop and wants a refund from the shop owner. However, the shop owner refused to pay back Billy.

In this case it would be a voidable contract because the law allows that party to withdraw from the agreement if there is misrepresentation or fraud occurs in the contract. For example, Billy wanted to a refund ...view middle of the document...

However, Mrs. Carlill bought and used the smoke ball and ended up with flu. Therefore, she claimed the £100 from the company and they refused to pay her even receiving letters from Mrs. Carlill’s husband, who was a solicator. In the end, Mrs. Carlill sue the company. Mrs. Carlill sued, arguing that there was a contract between them (Stephens, 2011). Therefore, the argument was discarded by the court. The court held that the advertisement did represent an offer, which became a contract when it was accepted by Mrs. Carlill who used the smoke ball and caught flu. Therefore, she was entitled to the £100 (Coleman, 2009). For example, Katrina goes to shopping and saw a nice dress. She walks in the shop and ask the sales person to sell the cloth to her at price http £50, sales person agreed. Katrina bought the dress and leaves the shop. Therefore, there was an offer. An invitation to treat is not an offer but a preliminary communication.

Meanwhile in (Gibson v Manchester City Council), it held that some transaction engage at the beginning stage in which one party invites another to create an offer known as invitation to treat. A council tenant was interested in buying Mr. Bison’s house. He sent an application form and received a letter from the Council. The letter states that it may be prepared to sell the house to you for £2,180. Mr. Gibson was queried the purchase price and the Council refused to change the price due to the price had been fixed. In May 1971, due to some changes in political control of the Council, they would not continue with the house. Mr. Gibson claims that the purchase was an offer. However, the court held that the Council did not make any offer but just the letter giving the purchase price which left one step of negotiations for a contract. When Mr. Gibson sued, the court held it was no offer and only invitation to treat (Quinn, 2007 ).

In this case, it was an invitation to treat when Billy saw a nice GEZZ watch and Mike make an offer to shop owner which was accepted.

3.0 Acceptance

According to (Young, 2010), an acceptance refers to an unconditional consent to the conditions of the offer. If an acceptance hold any reservations, variations to the terms of offer, then the acceptance will be conditional. Since then, it will not be an unconditional consent and it will not be an acceptance to the offer. In Section 2(b) of the Contracts Act, acceptance is when the person whom the proposal is indicate his consent, therefore the proposal is said to have been accepted. When offer accepted it becomes promise and acceptance of an offer creates a contract. Case (Brogden v Metropolitan Railway Co) Brogden supplied coals to the railway company for years without any official transaction and no written contract. However, both parties decided to do it formally. The rail company sent Brogden a draft agreement which left a few blank to be filed and sent it back to the company. After that, Brogden...

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