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Business Law - Assignment Example

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Section A Question 1 Martin Issue: Martin saw an advert indicating that the ?100 A1 cameras were going for ?50 at the shop. He phoned the shop and a sales person confirmed the availability of the camera for ?50. When he got to the shop he was told the cameras go for ?…
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Business Law

Download file to see previous pages... The offeror cannot just cancel an offer once it is made. When an offer is made, the offeree (the one the offer is made to) can decide whether to take it or not within a reasonable timeframe. Since an offer puts some kinds of obligations on the offeror, there is the need to define what constitutes an offer. In this definition, there are some exceptions to the rule. When a person makes an indication that another person can enter negotiations for a contract, this is not an offer, it is an invitation to treat. A typical example of an invitation to treat is the case of the display of goods in a shop window. In Pharmaceutical Society of Great Britain V Boots Cash Chemists (1953) it was held that goods displayed in a shop does not constitute an offer but an invitation to treat. Additionally, the declaration of an intent is not an offer. In Harris V Nickerson (1873), an auctioneer advertised the sale of goods in an auction. However, he refused to hold the auction on the said date. A prospective attendant sued for a breach. It was held that the advert was simply a declaration of intent but not an offer. Application In this, the advertisement by Gift House that they have reduced their A1 cameras was not an offer. It can be considered an invitation to treat. ...
They are mere invitation to treat and declaration of intent respectively. Due to this, Martin does not have the right to purchase the camera at ?50. Davina Issue Davina gets informed that the A1 Camera (which sells for ?100) goes for ?50 in the shop. The shop also states that if anyone purchases goods worth ?500 by 1st December, there will be a free television. Davina mails an order for the camera and the goods totaling ?500 and indicates she wants the free television on 30th November. Davina receives the goods but finds out that she was charged ?100 for the camera and she did not get the television which was promised. The issue is whether the postal order created a legal contract that gives her rights to the camera at ?100 as well as the television set. Rule In Carlill V Carbolic Smoke Ball (1893), the defendants advertised to pay ?100 to anyone who caught flu after using smoke their smokeballs. Mrs Carlill used the smoke balls but caught flu. She argued that she was entitled to the ?100 promised. It was held that the offer was one that a reasonable person could take seriously. Secondly, the postal rule is established in the case of Adams V Lindsell (1818). It states that acceptance of an offer takes effect once the acceptance letter is posted. Application In this case, Davina saw a catalogue that advertised two things: the sale of a camera at ?50 and an offer of a free TV when a customer shops to the tune of ?500. This is something that the average person could take seriously and follow up. Davina followed up by making an order through post on the 30th of November. This order was a valid claim for the A1 Camera at ?50 and the TV prize since she shopped to the tune of ?500. According to the postal rule, this postage ...Download file to see next pagesRead More
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