Relevant Law-Btechnd Assignment

Relevant Law-Btechnd AssignmentIntroduction

The law of contract is one of the significant areas of law that requires consideration. Task 1 is mainly dealing with the law of contract, especially with the legal principals dealing with offer, invitation to offer, counter offers, acceptance rules such as postal and general acceptance rules. It also covers a brief analysis on the terms of the contracts, their meaning, effect and remedies.
A case analyse is provided in Task 1 which is dealt with after analysing several contractual legal principles.
The major issue that is analysed after understanding the case scenario is whether there is a valid contract amid Louise and Jewellery Store?
The Basic relevant law that deals with the same is evaluated as under.

Relevant Law Contract – definition, meaning and elements

A contract is an agreement which is enforceable by law (The Law Teacher 2016). To make a valid contract, the main contract essentials are:

  1. Offer: In contract, an offer is first contract essential and is made by an offeror with the sole purpose to get its approval from an offeree on such terms which are communicated to him. An offer can be made to a single person or to world as large (Carlill v Carbolic Smoke Ball co(1893). It is also important to state that an offer is different from The basic definition of invitation is when there is no offer which is made but offers are invited by the displayer of advertiser, auction, displayer and others,  and only after receiving offer he may or may not accept such offer resulting into a binding contract (Partridge v Crittenden (1968). Mainly, it is the advertiser or auctioneer or displayer who is the ultimate offeree and the people who are making the offers are considered to be the offerers.  (Elawresource UK 2016)
  2. Acceptance – Once the offer is accepted by the offeree then it is called acceptance and makes a binding agreement between the parties (Butler Machine Tool v Ex-cell-o Corporation(1979)). But, if the offeree does not accept the offer but varies the terms of an offer then it is not an acceptance and is called counter offer which cancels the first offer and establishes a new offer which is now made by the offeree (Hyde v Wrench (1840)). It is only after a counter offer is accepted by the old offeror a valid agreement is made amid the parties.  (Elawre source UK 2016)

Both offer and acceptance makes an agreement.

At times, an offer is made which is open for some time. If an offeror wants to revoke such offer then the communication of revocation must be made by an offeror to an offeree and the same is complete when it comes within the knowledge of the offered (Dickinson v Dodds (1876)). Also, the revocation of offer must be made before the same is accepted by the offered to make it effective. If before the communication of revocation is complete as against an offeree, an acceptance is made by such offeree then an agreement is said to be complete depending upon the mode of acceptance. For instance, if an acceptance by an offeree (before the revocation of offer is compete) is made by post, then, as per Adams v Lindsell (1818) an acceptance is compete as soon as letter is posted. Thus, in such situations the revocation does not take place and there is a binding contract. But, if the acceptance is made by any other means, such as, by telephone, fax, or other ways, then the revocation is complete only when comes within the knowledge of the offertory (Entorres v Miles Far East (1955). Thus, if revocation of an offer is received by an offeree before his acceptance is received by an offer, then, there is no contract amid the parties. (ElawresourceUK 2016)

  • Consideration – Consideration is a benefit which is exchanged between the offer and the offeree to support the promises that are exchanged amid them. It has to be some value but may not be sufficient.
  1. Legal intention – Legal intention signifies that the parties want to enforce the contract in court and the same is not based on any friendly relationship (Balfour v Balfour (1919).
  2. Capacity of the parties – Capacity means that parties are capable to form a contract. The parties are capable when they are not minor, not barred by any law and are of sound mind.

All contract essentials are very important and necessary to make a valid contract as if even one element is missing then the contract is not enforceable in law. (Business Law 2012)

Kinds of contracts

When all contract essentials are present, then various kinds of contract can be made, such as, written, oral, distance selling, online, and others, all such contracts are valid however if the contracts are in written form then it is much easier to prove the terms of written contracts in court because of the presence of documentary proof, which is difficult to prove in verbal contracts. (Outlaw 2016)

Terms in written contract

When a valid contract is made then various terms are made part of the contract. Terms which are mutually decided by the parties are express and which are imposed by law or custom are implied terms. Express terms can be condition (very essential and can terminate a contract), warranty (not very essential and only remedy can be sought (Poussard v Spiers (1876)), in nominate and exclusion clauses (limit the liability of one party with the consent of another (Bettini v Gye (1876)).  (ElawresourceUK 2016)

Application & Conclusion

Now, an advisement is issued by a store for sale of bracelet for £100. Thus, as per Partridge v Crittenden (1968) such advertisement is an invitation to treat and not an offer. It is Louise who must make an offer to Ashleigh (manager). Louise makes an offer to pay £70 cash for the purchase of the bracelet. Now, the manager must accept this offer to make a binding contract but he made a counter offer of £80. Thus, this counter offer lapse the first offer made by Louise.
Now, the new offer is made by the manager for £80. Instead of accepting the offer, Louise made a new counter offer of £75. This is not approved by the manager and now he again made a counter offer of £80 which is to be open until 10am on Friday the 4th of February.
Now, the only offer that stands, is by the manager of £80 which is be open until 10am on Friday the 4th of February. If Louise accepts the same then there is a contract otherwise not.
Louise accepts the same by post on 2nd February (before 4th February). Thus, by applying Adams v Lindsell (1818) as soon as the letter is posted there is a binding contract between the two.
The revocation of offer by the manager (since the bracelet was sold by them for £100) was made by a letter. The said revocation is binding on Louise only when such revocation is within his notion. She received the revocation letter on Friday, that is, after the letter of acceptance is dispatched. It makes no difference when the manager receives the letter of acceptance as the acceptance is complete on 2nd itself when the letter was posted.
Thus,
Louise has full right to claim the bracelet from the store as there is a binding contract.
Conclusion to task 1, pros and contras.

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