Supply Chain

[pic]

BUS 201
Contract Law & Agency Law

Group-Based Assignment

Group Members PI No

Lua Lee Hui M0902119

Mohamed Idris Gurney K0901115

Ng Kong Yuan David M0901042

C O N T E N T S P A G E

Question 1 3-9

Question 2 10-13

Question 1 14-16

References 17

Question 1 (a)

Issue

The case study evolves on Shaun, being the offeror, and three interested parties, being the offerees, on whether they have a valid contractual agreement for the purchase of the electric guitar that was advertised on the papers by Shaun. Firstly, there is a need to review the fundamental of the advertisement by relating them to the following key elements of a contact:

(a) Offer

An offer is an expression made by one party (“offeror”) to another party (“offeree”) communicating the offeror’s willingness to perform a promise (Benny, 2009, page 63). The offeree can be a specific person, a group of people or to the whole world.

An invitation to treat refers an invitation to commence negotiations. It is an invitation to make an offer. Acceptance of an invitation to treat does not lead to a contract (Pharmaceutical Society of Great Britain v Boots Cash Chemist) (1952) (Benny, 2009, page 66).

In the advertisement that was placed by the offeror, the offer on the table is the sale of a electric guitar that was previously owned and played by Eric Clapton to the first interested party who write in to his stated address, with $5,000. The advertisement was not considered an Invitation to Treat because there is no negotiation required as the offeror had mentioned in the advertisement that his guitar will be sold to the first person who wrote in to his stated address with $5,000. Therefore, it should be classified as an offer. The aim of the advertisement is to

References: • Benny S Tabalujan, Valerie Du Toit-Low- Singapore Business Law, (2009), 5th Edition, BusinessLaw Asia, Singapore.