Rule Of Law Case Study

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Commercial Law Bridging Assignment Question 1a. Leila lost her gold chain and locket and placed an advertisement with a reward of $50 for those who could return the lost item. Julie saw the advertisement and found the matching item which Leila has described. She then return it to Leila to claim the reward. However, Leila refused to reward her. Issue The main point of focus is to establish whether there is a binding contract between Leila and Julie. A binding contract is an agreement which both parties legally made and must be kept within the terms of contractual agreement. For a binding contract to be enforceable, the following four elements must be present – offer, acceptance, consideration and intention to create legal relations. Rule of …show more content…

Leila made an advertisement to look for her lost gold chain and locket and would reward $50 to the person that managed to return her. By publicising in an advertisement, an offer is made to the world at large whereby anyone can accept the offer. This could be seen in Carlill v Carbolic Smoke Ball Co (1893) case. The court acknowledge that the advert did amount to make an offer to anyone that purchase and uses the smokeball. Mrs Carlill accepted the offer by doing so. Hence, in this case, Leila has indeed made an offer. Rule of Law – Acceptance by Waiver of Communication An acceptance is expressed orally, written or implied by conduct. It must be positive and match the offer by means of communication. However, there are exceptions that acceptance need not be communicated to or received by the offeror. Waiver of communication in the case of Carlill v Carbolic Smoke Ball Co (1893) illustrates the point. The offer was made to the world at large and if anyone acts upon the given information of purchasing and using the smokeball properly, the person has deemed to accept the offer. For Leila’s advert, it was not implied or stated that one has to call first in order to be rewarded and thus, no acceptance method is specified. Therefore, Julie has accepted the offer made by Leila and returned the lost item with means of ‘waiver of communication’ rule.

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