Q 1 - An offer exits whenever the objective inference from the offeror’s words or conduct is that she intends to commit herself legally to the terms she proposes. The advertisement specified that the promisee should use the smoke ball 3 times a day for 2 weeks. Mrs. C used the smoke ball and caught Influenza‚ then claimed the $100 from the company. a- How were the facts of Carlil v. Carbolic Smoke Ball different from the usual situation involving an advertisement? ( relate it to the elements of
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determine if an offer exists‚ an offer will be differentiated from an invitation to treat. Secondly‚ the offer and acceptance of the last offer will be identified. Thirdly‚ Fitness for purpose (SOGA) will be explained. With regard to Peter v Manufacturer‚ the “Guarantee” of consumer goods (UCTA) will be explained. Lastly‚ Peter will be advised regarding this issue. 2. Peter v Salesperson Applicable Law 1: Issue This issue is whether the advertisement brochure is an invitation to treat. It is
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contract law agreement: objective test of intention to agree offer must be matched by other’s acceptance requirement of certainty of agreement parties have intention to create legal relations enforce promise: consideration promise is contained in a deed promissory estoppel (claimant has relied on defendant’s promise) reliance theory: consistent with the harm principle (prevent harm on others) restitution interest
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four elements‚ that being offer‚ acceptance‚ intention and consideration. (Sweeney & O’Reilly 2007 pg 160). A contract only exists when an offer has been accepted‚ an offer has the intention to be legally binding and the willingness to contract on certain conditions (Butt 2004 pg306). Accepting an offer means agreeing to the contract and in essences agreeing to the terms of that contract‚ an offer can’t be withdrawn or rejected and only the offeree is able to accept the offer‚ this acceptance must be
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high degree of freedom of choice; but‚ in the modern era with increasing use of statute to regulate behaviour that may mislead‚ exclude liability or be oppressive. 1.3 Essentials of a modern contract * Intention to create legal relations * Offer * Acceptance * Written formalities in exceptional cases * Consideration except for contracts under deed * Clear terms * Parties must have capacity to contract * The contract must not be ‘illegal’ or contrary to public policy
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I will discuss mainly two things; formation of a contract between two parties‚ the offer and the acceptance. I will report on their relevance for each of the 3 parties involved‚ finally I will give legal advice to Chuck (offeror)‚ Arnold and Sylvester (offerees). First we must distinguish whether Chuck’s advert was an invitation to treat or an offer. An example of a case involving an advertisement as an offer was Carlill v Carbolic Smoke Ball co. [1] This case involved an advert where Miss
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.................................4 The decision..................................................................3 Analytical Discussion of the implications for the principles of law regarding offer and acceptance............................................6 Current law in Australia regarding offer and acceptance..............10 Theoretical perspective.....................................................12 Conclusion...................................................................14 Bibliography
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items from the shelves. In order to identify the existence of the contract‚ it is important to examine the rule of an invitation to treat and an offer. It is important to understand the difference between these two because the legal consequences will be different. Invitation to treat (ITT) is not an offer. It is made when one party invites the other party to make an offer. The term ‘offer’ is defined in s. 2 (a) of the Contracts Act 1950 as when one person signifies to another his willingness to do or
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of the parties: section 5(2)‚ SOGA 1957. An invitation to treat is an action inviting other parties to make an offer to form a contract. These actions may sometimes appear to be offers them‚ and the difference can sometimes be difficult to determine. The distinction is important because accepting an offer creates a binding contract while "accepting" an invitation to treat is actually making an offer. Advertisements are usually invitations to treat‚ which allows sellers to refuse to sell products
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Law: A tender is considered as an invitation to treat. As opposed to an offer‚ an invitation to treat is not made with the intention that it is to become binding as soon as the person to whom it is addressed simply communicates his agreement with the terms; although‚ it is not always simple to differentiate between the two. Kiyo Itakura Investments v Bentall Properties Ltd. 1993 CanLII 289 BCSC (CA)‚ Tenders are generally placed in the category of invitation to treat‚ where a party is merely being
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