Basic Fundamentals of Contract Law
With the presence of contract law, it helps to elimiate any injustice an individual or company might face when engaging in negotiation. It protects the interest of the different parties involved. In the case given, contract law will jusitiy an individual legal rights. The element of contract law includes offer, acceptance, consideration and an intention to create legal relation. In the scarnio give, we need to ascertain the basic fundamental of the contract law. The possibility of Bill taking legal action against John is high as the elements of contract law are present. However, in the case of Adam, the possibility to take legal actions against John would be much lower.
An offer need to be present in order for a contract to be valid. However, an offer must be differentiated from an invitation to treat, declartion of intention and provision of information. In Preston Corportion Sdn Bhd v Edward Leong (1982), an offer as defined as: 'An offer is an intimation of willingness by an offeror to enter into a legally binding contract.”. In the scenario given, John places an advertisement on the newspaper to sell his house for $2 million dollars. Quoting the case of Carlill v Cabolic Smoke ball Co (1893), Carbolic Smoke Ball Co places an advertisement on the newspaper which Mrs Calill acted on it. The court held the wording of the advert did amount to an offer. Similarly in the case of John, the advertisement account to an offer. This case will not fall into the category of an invitation to treat as John has already make the offer of selling his house for $2 million dollars in the newspaper and not waiting for the other parties to make an offer. Declaration of interest would be smimilar to the case of auction or when companies are invited to tender for a project which would not be valid in the scenario as well. An advertisement in the newspaper with a price quoted would not fall into the category of provision of information as well. From the case of Harvey v Facey
An offer need to be present in order for a contract to be valid. However, an offer must be differentiated from an invitation to treat, declartion of intention and provision of information. In Preston Corportion Sdn Bhd v Edward Leong (1982), an offer as defined as: 'An offer is an intimation of willingness by an offeror to enter into a legally binding contract.”. In the scenario given, John places an advertisement on the newspaper to sell his house for $2 million dollars. Quoting the case of Carlill v Cabolic Smoke ball Co (1893), Carbolic Smoke Ball Co places an advertisement on the newspaper which Mrs Calill acted on it. The court held the wording of the advert did amount to an offer. Similarly in the case of John, the advertisement account to an offer. This case will not fall into the category of an invitation to treat as John has already make the offer of selling his house for $2 million dollars in the newspaper and not waiting for the other parties to make an offer. Declaration of interest would be smimilar to the case of auction or when companies are invited to tender for a project which would not be valid in the scenario as well. An advertisement in the newspaper with a price quoted would not fall into the category of provision of information as well. From the case of Harvey v Facey