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For a contract to be valid there must be an agreement and an offer between the two parties

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Introduction

Beatson, in Anson's Law of contract, defines a contract as 'A legally binding agreement made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others.'1 In simpler terms a contract is an agreement made between two or more parties who intend that the agreement will be legally binding. The essential elements of a contract are, offer, acceptance, intention to create legal relations, capacity, form and legality. For a contract to be valid there must be an agreement and an offer between the two parties In order to advice the parties one needs to distinguish weather it is an offer or an invitation to treat. Roger who is fifteen years old, decided to treat himself for his fifteenth birthday. Roger was interested in buying a new stereo. Roger set off, searching for his new stereo where, he went past his nearest Electrical World branch and he saw a large sign displayed on the window stating that many items were on special offer. Roger was interested because he wanted to buy a stereo. The advertisement that Roger saw was advertising various top brand stereos, this attracted his attention, in particular was that various top brand stereos were at �25 each. ...read more.

Middle

So it was clear to Roger that this was an invitation to treat for Roger to make an offer to buy and not an offer on behalf of electrical world to offer to sell the goods. In the case Fisher v Bell, the customer was invited to buy the flick knife and not to make an offer to buy the flick knife, so Roger was in the same situation as in this case. When Roger took the item to the counter he was accepting to buy the radio, but when Julia asked for �75, Roger refused to pay and told Julia that it was a sale item, so there was no contract because roger refused to pay when Julia made a counter offer. There only could be a contract if roger accepted to pay �75. This is illustrated in the Partridge v Crittenden5 case, where the words 'special offer' was not used but nonetheless partridge was charged with, and convicted of, unlawfully offering for sale a bramblefinch hen contrary to protection of birds act 1954 s. 6(1). This is a case were a contract was formed by a sale taking place and in Rogers case their was no sale taking place. In order to conclude the above mentioned, Roger didn't accept the price that Julia offered of �75, and therefore in this case there wasn't an acceptance, which means there isn't a contract. ...read more.

Conclusion

In the act of feeding the cats was not made in response to pay for the act. In another case that illustrates the act of past consideration is in the case of Re McArdle8, where McArdle and his wife lived in a bungalow that formed part of his father's estate. McArdle carried out certain repairs and decorations to the bungalow. McArdle's wife paid for the work which cost �488, after the work had been done, McArdle presented each of his three brothers and his sister with a document which stated (copy form book page 95) the document was signed by the sister and the four brothers, three years later McArdle's mother died and McArdle's wife claimed payment of �488, in the mean time McArdle's brothers and sister had changed their mind about repaying �488. The case here was made after the work had been done and McArdle's wife was unable successfully to sue for those moneys. McArdle's wife had furnished no consideration for the promise to pay the money for the alterations and improvements. Similar to the case mention above Callaghan doesn't have to pay roger the �75 because there was past consideration, which is no consideration. For there to be consideration between the parties, Callaghan had to make the offer of the �75 to Roger before Callaghan went on holiday, but this wasn't the case and the promise was made after Callaghan returned from holiday. ...read more.

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