Harvey V Facey Case Summary
a)
The issue is if there is a binding contract between Couch Taters (CT) and King Korn (KK) and what the terms is if there is a contract.
One party can legally force the other party to perform his task if there is a binding contract between parties. An enforceable contract requires four elements – offer, acceptance, consideration and intention to create legal relations.
Homer enquired about the price of corn grains from KK, whom quoted $0.50/kg. This is a provision of information for information regarding price of the corn grains if KK intended to sell. Also, KK’s response had no intention to get into an agreement upon providing the information hence statement is not an offer: Harvey V Facey - Therefore, when Homer mentioned “sounds like a …show more content…
This is terminant’ of acceptance as acceptance has been communicated to CT effectively. Acceptance cannot be revoked even if Homer had not read the email: WenKhiem V Arndt. As it was not required for acceptance to be effective supported by S13 (2) ETA and postal rule. Therefore, as acceptance is effective and the oral statement by KK regarding price change to $0.60/kg does not affect due to S13(2) ETA.
Since acceptance is communicated and there was an unconditional expression of agreement to the terms of the offer the contract terms – CT purchasing 10000kg of corn grain from KK at $0.53/kg. KK was aware of the offer, had the desire to accept the offer thus motive of acceptance is relevant: Williams V Cardwardine. Therefore, acceptance is established.
As offer and acceptance has been established, and since CT expressed willingness and promise to purchase 10000kg corn grains from KK at an executory consideration of $0.53/kg which is a sufficient and a good consideration thereby the promise enforceable in court. Furthermore, CT and KK entered into commercial agreements and a general presumption is there is intention to create legal relations.
Therefore, since all 4 elements establishing a legal binding contract exist, there is a legally binding contract between KK and CT. KK would be legally bounded to sell the corn grains at
The issue is if there is a binding contract between Couch Taters (CT) and King Korn (KK) and what the terms is if there is a contract.
One party can legally force the other party to perform his task if there is a binding contract between parties. An enforceable contract requires four elements – offer, acceptance, consideration and intention to create legal relations.
Homer enquired about the price of corn grains from KK, whom quoted $0.50/kg. This is a provision of information for information regarding price of the corn grains if KK intended to sell. Also, KK’s response had no intention to get into an agreement upon providing the information hence statement is not an offer: Harvey V Facey - Therefore, when Homer mentioned “sounds like a …show more content…
This is terminant’ of acceptance as acceptance has been communicated to CT effectively. Acceptance cannot be revoked even if Homer had not read the email: WenKhiem V Arndt. As it was not required for acceptance to be effective supported by S13 (2) ETA and postal rule. Therefore, as acceptance is effective and the oral statement by KK regarding price change to $0.60/kg does not affect due to S13(2) ETA.
Since acceptance is communicated and there was an unconditional expression of agreement to the terms of the offer the contract terms – CT purchasing 10000kg of corn grain from KK at $0.53/kg. KK was aware of the offer, had the desire to accept the offer thus motive of acceptance is relevant: Williams V Cardwardine. Therefore, acceptance is established.
As offer and acceptance has been established, and since CT expressed willingness and promise to purchase 10000kg corn grains from KK at an executory consideration of $0.53/kg which is a sufficient and a good consideration thereby the promise enforceable in court. Furthermore, CT and KK entered into commercial agreements and a general presumption is there is intention to create legal relations.
Therefore, since all 4 elements establishing a legal binding contract exist, there is a legally binding contract between KK and CT. KK would be legally bounded to sell the corn grains at