Contract Law

1368 Words3 Pages
bulb-icon

Recommended: Carlill v Carbolic Smoke Ball Company Ltd

Contract Law

Gertie places a notice in the trade journal ‘Mung Monthly' saying that she would pay £2000 against a ‘wood nymph' Mung vase with its authenticity certificate.

The question is to know whether Gertie's proposal is an offer and could lead to a contract .

The notice in the trade journal stays a proposal to the public. This proposal could amount to an offer if it is intended to result in a contract, if the other party accepts it, and if it contains sufficiently definite terms to form a contract. Gertie's notice is sufficiently definite (there is the price and the vase design) to be treated as an offer.

But is her proposal could be regarded as an invitation to treat?

Two arguments show that Gertie's notice does not have to be treated as an invitation to treat. First, the notice specifies that Gertie will pay a particular sum of money against a particular type of vase . This kind of proposal excludes the idea of negotiations . Second, Gertie's proposal is an advertisement in a trade journal . And it was held in the case of Carbolic Smoke Ball Co (1893) that the advertisement was not an invitation to treat but an offer to the whole world.

Furthermore, Gertie may wish prospective suppliers to know that they will be able to deliver the vase by accepting the proposal and that they do not risk refusal of their ‘acceptance‘. Thus, Gertie's proposal is to be treated as an offer.

Both Maurice and Fred have seen the notice in the trade journal and they have a ‘wood nymph' Mung vase.

It is interesting to see how Maurice has tried to make a new proposal in asking to Gertie whether a ‘tree frog' vase would do.

Is this kind of proposal a counter-offer?

To my mind, Maurice has just asked to Gertie whether she was interested in the ‘tree frog' vase. It is not a real counter-offer. A counter-offer would have been in that case a purported acceptance which would have change the price, like it was in the case of Hyde v. Wrench (1840). For instance, Maurice would have suggested to Gertie a higher price for the ‘wood nymph' vase.

Both Maurice and Fred have obtained the Mung Monthly authenticity certificate .

Maurice posts it to Gertie by a private letter delivery service on 6th March . His letter arrives at 9am on the 8th March .

Fred decides to email Gertie on the 7th March with a scanned copy of his authenticity certificate.

Show More
Related

  • Contract In Contract Law

    2081 Words  | 5 Pages

    Part A Question 1 Step 1: Area of Law The area of law is focused on Contract Law in regards to the formation of a contract and specifically on the element of agreement for offer and acceptance. Step 2: Principles of Law A contract is a legally enforceable agreement between two or more parties. When a contract is made, parties become subject to legal obligations, whereby there is a legally binding duty to give or do something. This is known as the contractual rights and duties that parties must perform

    Read More

  • Law of Contract

    985 Words  | 2 Pages

    Law of Contract A contract is a legally binding enforceable agreement between two or more parties. Where an issue of a breach of contract arises in court, the court has to decide whether or not a contract has been made. To do this they must establish whether an offer has been made or whether it was simply an invitation to treat. If an offer has been made the courts must then look to establish whether there has been an acceptance. An offer is a statement of willingness by one party to

    Read More

  • Contract Law

    1071 Words  | 3 Pages

    Contract Law Viv Windsor bought a local shop and a computer, Anxious to please the locals, put an advert in the local news paper on a Saturday, stating that she would sell luxury chocolate shortbread for £2.50 instead of the recommended retail price of £5. She also stated that anyone wanting the shortbread should email her or come to the shop. Eric pollard, the appellant saw the email at 4.30pm on Saturday and sent her email on the same day. She realised that evening that she was

    Read More

  • Consideration In Contract Law

    1484 Words  | 3 Pages

    Contract Law 1 a.) Consideration within contract law means that a seller promises to provide goods in exchange the buyer will provide money. This is sometimes referred to as “the price paid for a person’s promise”. A definition for consideration was set out in the case of Currie v. Misa (1875) LR 10 Ex 153 it was defined in the following way: “A valuable consideration, in the sense of the law, may consist either of some right, interest, profit or benefit accruing to the one party, or some forbearance

    Read More

  • Essay On Contract Law

    2266 Words  | 5 Pages

    Contract Law A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also

    Read More

  • Misrepresentation In Contract Law

    558 Words  | 2 Pages

    party. Individuals also enter into contracts they would not ordinarily due to physical and economic duress and duress of goods. Undue influence in a contract results when someone has taken advantage of their relationship and uses it to their advantage over another person. Hindrances to Agreements in Contract Law Although fraudulent misrepresentation, duress and undue influence are each different in their own way, they are types of assertion that exist in contracts where an individual would not have

    Read More

  • Law Of Contract

    2129 Words  | 5 Pages

    Introduction The law of contract can be states as the division of law that determines the condition whether a promise should be lawfully bind on the person who making it (Beatson et al., 2010). Contracts play a basis part in our everyday lives as well as for the businesses transactions (Lee and Detta, 2009). A contract defined as a voluntary agreement to exchange of promises, services, and things which can be enforceable by law (Lee and Detta, 2009). Besides, a contract also known as agreement where

    Read More

  • Contract Law And Contracts

    1494 Words  | 3 Pages

    Contract is the basis of all commercial transactions. A contract is a deal or a bargain from which both parties expect to benefit. The word ‘contract’ can be defined as an agreement involving two or more people that is legally binding upon the parties. The contract law in Malaysia is mainly enforced and governed by the Contracts Act 1950. Consideration is the main elements to make a legal contract. Besides, a void agreement has no legal effect. I agree that when an agreement, which was legal and

    Read More

  • COntract law

    1085 Words  | 3 Pages

    order to avoid the possibility to be sued. An exemption clause is a term of a contract that seeks to either limit or exclude liability for breaches of the contract. They act as contractual defences . In order for an exemption clause to be fully incorporated into the Quanter Ltd contract, or for any contract for that matter, there are a number of essential elements that each contract must undertake in order to make the contract lawful an adequate e.g. incorporation by signature, incorporation by reasonable

    Read More

  • Law Of Contract Case Study

    1782 Words  | 4 Pages

    about the law of contract. For example Carlill v Carbolic Smoke Ball. The manufacturers had published the products on newspaper advertisements. Based on this action, the advertisement is invitation to treat. However, in this case it can be consider as unilateral offer whereby the offeror doesn’t know who is going to accept the offer. It is because this case does contain promise which can be an offer. However, Miss Carlill won the case because the judge evaluated this case as a contract which is acceptance

    Read More

  • Contract Law

    920 Words  | 2 Pages

    Contract Law Bingham LJ's statement expresses well the purpose of the doctrine of frustration which is to moderate the general rule, as expressed in Paradine v. Jane (1647), that, unless they have been expressly qualified, contractual obligations are absolute. It does not tell us much about the underlying principles of the doctrine. How and when does it apply and what are the effects? Contract law needs certainty and a doctrine that excuses parties from the performance of their obligations

    Read More

  • The Pros And Cons Of Minors In Contract Law

    768 Words  | 2 Pages

    A contract is a written or spoken agreement, especially one about employment, sales, or real estate, which is intended to be enforceable by law. In order to form a legally binding contract the general requirements of a contract must be present, for example there must have been an offer, acceptance and an intention to form a legally binding contract. Without all of these elements a contract will not be legally binding. If all these elements are in place a contract will be legally binding, however

    Read More

  • Tort and Contract Law

    1358 Words  | 3 Pages

    Civil Law is a branch of law that matters itself with disputes that involve private parties, or negligent acts that cause harm to others. This is in contrast to criminal law which is invoked for the public purpose. Under civil law, there are remedial awards unlike in criminal law which is punitive in nature. These remedies can either be under tort or contract law. To understand the civil liabilities and or remedies demanded between Andy, Sam and Bob, this can only do so if there is an appreciation

    Read More

  • Contract Law Case Study

    1093 Words  | 3 Pages

    which each allege breach-of-contract and conversion theories of relief, should be dismissed pursuant to section 2-619(a)(9) of the Code. 1. Plaintiffs Breach of Contract Claims are Defeated by the Lease Terms and are Waived Plaintiffs’ breach-of-contract claims are defeated by two independent affirmative matters: the lease’s terms and the equitable principle of waiver. To bring a breach of contract cause of action, a plaintiff must allege (1) the existence of a contract, (2) plaintiff’s performance

    Read More

  • Case Study Of Minors In Contract Law

    767 Words  | 2 Pages

    A contract is a written or a verbal agreement, which is intended to be enforceable by law. It is particularly related to employment, sales, and real estate. In order to form a legally binding contract the requirements of a contract must be present. There must have been an offer, acceptance and an intention to form a legally binding contract. Without all of these elements a contract will not be legally binding. If all these requirements are in place a contract will be legally binding. However

    Read More

More about Contract Law

Open Document