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Law of Contract - Case Study Example

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In the paper “Law of Contract” the author considers whether the advertisement placed by Adam in the local newspaper is an offer or invitation to treat. An offer is a promise to be specifically bound, and it should be capable of acceptance. It specifies the terms of the contract…
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Law of Contract
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Extract of sample "Law of Contract"

Download file to see previous pages For instance, in Partridge v Crittenden, it was held that an advertisement is tantamount to an invitation to treat (Partridge v Crittenden, 1968). However, there are exceptions, where an advertisement is considered to be an offer. An example is provided by the Carbolic Smoke Ball case. In this case, the defendant’s contention that its newspaper advertisement was not an offer was rejected by the court; as the plaintiff had complied with the terms of the offer (Carlill v Carbolic Smoke Ball Co, 1892).

Thus, the advertisement placed by Adams in the local newspaper is an invitation to treat and not an offer, as per the case law discussed above. It is to be determined, whether Adam had formed legally binding contracts with Carl, Bradley or Diana for assessing his liabilities.

The communications between Carl and Adam commenced with Adam’s text message to Carl on the 5th, wherein he offered to sell his car for £ 1800. This constitutes an offer. Carl conveyed his acceptance of this offer to Adam, by means of a text message. This was on the 6th. However, Adam had failed to see this message, as he had misplaced his phone. The acceptance by Carl was not concluded, because it did not reach Adam, the offeror. In cases of instantaneous communications, the courts had ruled that acceptance was established only when the acceptance message had been received by the offeror.

Acceptance of an offer by instantaneous communication was completed, only on being heard or received by the offeror (Christou, 2005, 212). It has been held that acceptance by telephonic messages is complete, only when the offeror hears such acceptance (Werner, 2001, 6). This was discussed in Domb and another v Isoz (Domb and Another v Isoz, 1980). ...Download file to see next pagesRead More
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