Contract Law Analysis - Case Study Example

Contract Law Section A Question a) This issue where Igor advertised to sell his favourite guitar concerns the rules of offer and acceptance. An offerand acceptance is one of the essential elements of a valid contract. On the other hand, a contract may be defined as an agreement between two or more persons which is intended to create legally binding obligation. For this case, there was a contract that was made between Igor and Jonquil since there was an offer that was made through advertisement by Igor that was accepted by Jonquil through the post. 1 An offer may be made to a specific person or to any member of a group of Persons or to the world at large, but it cannot form the basis of a contract until it has been accepted by ascertained person or group of persons. If Y makes an offer to Z, it is a specific offer and Z is the only person who can accept it. But in many cases, it is immaterial to whom the offer is made. Offers made by advertisement are the commonest form of offers made to the world at large, and can be accepted by anyone by acting on them. 2 For this case, Igor made an offer through advertisement and it was to be accepted by anyone who acted on the advertisement. Jonquil acting on the advertisement accepted the offer through the post in an acceptance letter he wrote on January 29th. The advertisement said that anyone accepting to the offer must reply to the Ritz Hotel in London by February 1st. A contract had already been entered into between Igor and Jonquil immediately a letter of acceptance was posted. It is immaterial that Igor sold the guitar since he had not received any acceptance from Jonquil. The acceptance is considered complete immediately the letter of acceptance is posted, even if it is lost or destroyed in the post so that it never arrived. As long as the offeree can prove that he posted the letter of acceptance, the court will enforce the contract. A relevant case studied on acceptance by post of an offer is that of:- Adams v. Lindsell of 1818 On September 2, Adams wrote offering to sell wool at a price, and requesting a reply by post. The letter was delayed and reached Lindsell on September 7. The reply of acceptance was posted immediately and reached Adams on September 9. Adams sold the wool on September 8. It was held that there was a valid contract between Adam and Lindsell since the acceptance was communicated as soon as the offer was received. 3 For this case, Jonquil should sue Igor for damages since he breached the contract they had entered into for the purchase of a guitar. b) Ali had made a contract between him and Blessing Builders for a fixed price of 5,000 but when the repair of the kitchen was half way finished Ali added them a further 700 since he heard the they were likely to abandon the work since they had under priced the job. It is immaterial for Ali to fail to pay them the extra 700 he had added them just because he lost money on the stock market. The extra 700 he added to encourage them to complete the repair of the kitchen had not been attached to any condition that failure of not making enough money on the stock market, would make him not pay them the extra amount. For this case, Blessing Builders should be paid their promise of an extra 700 since it was not attached to any condition. It is immaterial that he is failing to pay them since he made losses on the stock market. For this case, Blessing Builders may sue Ali for damages. Ali should not withhold the extra 700 he promised to give Blessing Builders upon completion of repairing the kitchen. 4 c) On the case where Neil was advised by his uncle to leave Manchester where he worked as an insurance clerk to undertake a dentist course as he give him monthly allowances, the uncle should be sued for breach of contract. Neil enjoyed a full social life in Manchester as he worked as an insurance clerk. His uncle disrupted his social life by advising him to take a dentist course in London as he promised to give him monthly allowances while studying. For this case, there was an intention to create a legal relation. A contract is a result of an agreement between the parties. But in order that a contract should be enforceable, there must have been an intention to create legal relations. Failure by Neil's uncle to pay him monthly allowances while studying dentist in London is not justifiable. It is immaterial that he refused to pay him monthly allowance because he failed a number of his exams. When they entered into a contract to give him a monthly allowance while studying in London, there were no condition as to when the allowances would be paid and not be paid. The agreement was just to move to London to study dentist as the uncle pay him monthly allowances to make ends meet while studying in London. Whether or not the parties intended to create legal relations is a question of facts to be inferred from all the circumstances of a case. On the other hand, if on examining the facts of a family agreement, the court reaches the conclusion that legal relations can be inferred, the contract will be enforced. 5 Neil's stay while studying Dentist in London depended on the monthly allowance he received from his uncle for up keep, and since his uncle has refused to give any more allowance with an excuse that he is failing his exams, his studies might be discontinued. Since he enjoyed a good social life in Manchester before his uncle advised him to leave for London to undertake a dentist course while he give him a monthly allowance, he is entitled for damages for breach of contract. Were it not for his uncle, Neil would have continued to have an enjoyable social life in Manchester where he worked as an insurance clerk. His uncle ruined his life for promising to give him a monthly allowance while he studied dentistry in London which he is now failing to give him. For this case, Neil will have to drop his studies and remain jobless. Since the contract was no more than a family arrangement, there was an intention to create legal relation and for this case, Neil should sue his uncle for damages. 6 References Emanuel, S. L, (2004): Fundamental of Business Law, 4th Edn, Sydney, Educational Publisher Emerson R. W, (2003): Business Law, 5th Edn, Sydney, Educational Publisher Jertz, A. Miller L. R, (2004): Fundamentals of Business Law, 3rd Edn, Nairobi, Macmillan Publisher Penrose, R, (2005): Road to Reality: A Complete Guide to the Laws of the Universe, London, Longman Publisher Read More