Case Study Of Offer And Acceptance In Modern Contract Law

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One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015) Law for Business Students defines offer as a full clear statement of terms on which the offeror is prepared to do business with the person(s) to whom the offer is communicated. In Gunthing V Lynne [1831] it was stated that an offer cannot be vague. Acceptance is the unconditional assent to the terms …show more content…

In this case, the manufacturers of a smoke ball company published an advertisement during the period of the influenza epidemic promising that the medicine would provide the patient with immunity and if they contracted influenza, they would receive £100. Mrs Carlill contracted influenza and claimed the £100. The court held that the company was bound by the offer to pay the sum accepted when Mrs Carlill purchased the smokeball. Therefore this case holds the legal principle (as seen in Contract Law pg 13) that offers can be addressed to the general public and are accepted when the offer is acted upon by a member of the general public. A similar case provided by the Court of Appeal is Bowerman v Association of British Travel Agents Ltd (1996) where the Association of British Travel Agents made an offer to the public at large that they would reimburse any money paid in respect of their holiday arrangements if the holiday was cancelled. This case reinforced that offers can be made to the whole world like that shown in …show more content…

Since the case of Carlill, there have been issues involving whether an offer was made, and the issue surrounding the offer (see more O 'Gorman, Daniel P. "Redefining Offer in Contract Law." Mississippi Law Journal 82.6 (2013): 1049-1096.) Classic cases which reflect this are Lefkowitz v great minneapolis surplus store and Fairmount Glass Works v Gruden-Martin Woodware, as….. Since Carlill V Carbolic, acceptance has developed and can be achieved in various ways: in writing, oral or it may be inferred by conduct (lisa sturgreon). This requirement of complete performance was emphasised in Daulia V Four Millbank Nominees Ltd [1978] where Goff LJ stated: ‘I think the true view of a unilateral contract must in general be that the offeror is entitled to require full performance of the condition he has imposed and short of that he is not bound’ (see more Paul Richards). Furthermore, there is no need to give advance notice of such acceptance to the

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