• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Contract Law, Scenario Assignment

Extracts from this document...


Tutorial 4: Practice Assignment A contract can be defined as a legally binding agreement between two individuals or a group of people. The quintessential elements of a contract are agreement, consideration and intention. An agreement is reached through an offer and then acceptance. Consideration is simple the “value” element whereby, money is paid for goods provided or work carried out. There is also intention which is where the parties involved intend to be legally bound; this may not always be stating rather it may be implied between the respective parties. An offer is a proposal made by an offerror to the offeree which includes specific terms and a promise to hold to that proposal if it is accepted. The proposal made by Brown & Co Ltd to Khan & Co Ltd offering to a sell a quantity of steel for £20,000 resulted in the latter replying with a counter offer. A counter offer is a rejection of the initial offer which is replaced by another offer, normally consisting of a price/service which is preferred by the offeree. There can also be cases where the price remains fixed by both parties and where the disagreement lies within certain conditions or clauses in that contract. However, a compromise must be reached before any sort of agreement can be reached. ...read more.


If they had rejected the offer from Steel Supplies and then also had their £17500 counter-offer rejected by Brown’s, it would have created further problems for them. They were unsure as to whether Brown’s would accept the counter-offer and so decided to go with Steel Supplies. “Offer and acceptance must be properly communicated in order to be effective”[3]. There are likely to be occasions where the parties involved in the process aren’t face to face therefore, other methods of communicating their acceptance must be used. The sales manager of Brown’s told his secretary to post the letter of acceptance on Thursday 8th September and the day before, Khan’s had tied up a deal with Steel Supplies. Offers involving the use of letter as a method of communication or acceptance brings in to effect, the “postal rule” This is where the acceptance becomes effective as soon as the letter is posted. A case in point is Adams v Lindsell [1818][4] which involved the sale of wool between two parties. The letter containing the offer was received late by the offeree which resulted in their letter of acceptance being received late by the offerror; who having not received the letter on the expected day and assumed rejection or silence, sold the wool to a third party. ...read more.


In NM Superannuation Pty Limited v. Hughes (1992) 10 ACLC 477, a decision of the New South Wales Supreme Court, Cohen J held that if a fax is left switched on its owner is indicating their preparedness to receive messages on it and in such circumstances it was sufficient for a notice to be communicated by fax, even though the document might arrive outside normal business hours. The same principles probably apply to other electronic means of communications, such as email but these have so far not been tested in a court. Basically, acceptance must be communicated effectively. Where timing is, or may be critical, you should agree on a method of acceptance and its timing at the beginning. As faster communication becomes the norm, the protection offered by the postal rules has been reduced for others forms of communication. For example, faxes are communicated when received rather than when sent, although they need not have been read, or even printed if the fax machine can save faxes to its memory, as it was in the case of Anson -v- Trump. http://vlex.co.uk/vid/tes-of-bernal-reporting-180-tel-to-the-52584405 ________________ [1] Hyde v Wrench [1840] 3 Bea 334 [2] Felthouse v Bindley [1862] EWHC CP J 35 [3] Jill Poole (2008). Textbook on Contract Law. London. Oxford University Press. p33 [4] Adams v Lindsell [1818] EWHC KB J59 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Law of Contract section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Law of Contract essays

  1. Marked by a teacher

    Contract Law - Offer And Acceptance

    3 star(s)

    Held to be an invitation to treat. PHARMACUTICAL SOCIETY OF GREAT BRITAIN V BOOTS CASH CHEMISTS (SOUTHERN) 1952 Display of articles on shelves under the supervision of a registered pharmacist not contravening Pharmacy and Poisons Act 1933. Held to be an invitation to treat. * In a petrol station put petrol in tank is when the contract

  2. Marked by a teacher

    Billy Joel Business Ethics and Law Case Study. In the above case ...

    3 star(s)

    Using contract, agency, and any other legal concepts you have learned this session, on what bases can Billy sue the salesman and his wife? What defenses will they have? Do you think Billy can recover? Further, will Margaret's husband (his name is Bernard)

  1. unit3 law of tort

    Contrast, however, Rennaway -v- Thompson (1980) where the nuisance complained of was noise from motorboat racing and water-skiing. The Court of Appeal held that a nuisance existed and they granted an injunction, which limited the number of days on which large-scale activities could take place, and limited the noise level on other occasions.

  2. Four ways in which a contract may be discharged.

    The assessment of unliquidated damages. The fundamental principle is to place the innocent party in the position they would have been in had the contract been performed. Robinson v Harman (1848) 1 Ex 855. The innocent party thus recovers for his loss of bargain.

  1. What is the importance of implied terms to the contract of employment

    that had destroyed the relationship of mutual trust and confidence with the employee by requiring him to move in such a short notice period. Similarly, failures to protect an employee from sexual harassment31 and to respond to the employee's concern on safety issues32 have been held to breach the implied term of trust and confidence.

  2. Outline the basic rule of the law of contract regarding the effective revocation of ...

    give sufficient consideration and went through the detriment of contracting with a third party at her own expense on the anticipation that the agreement between her and Jane would be carried out. (2) On Thursday Louise e-mails Jane at work and formally accepts the offer of sale at �14.500 but

  1. Evaluate the law of formation of contract in the context of modern methods of ...

    The courts claim the law on formation of contracts will consider what the parties intended which is a subjective approach. However, what the courts actually consider is what the ?reasonable? person would think of the facts which is an objective test.

  2. Aspects of the law affecting construction projects.

    * Any civil trial is in the vast majority of cases by a judge alone. Cases are often slow to pass through the system, measured in months or years rather than weeks as for criminal cases. It is also important to note that a very large proportion of civil claims

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work