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

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        Contract Law        

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.’ 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.

Roger entered the shop and wondered around where he saw a table with a sign saying ‘ last few sale items all £25 or less’. Roger spotted a top of the range Zony CD radio Cassette recorder, he decided that the Zony CD Cassette recorder was the item he wanted. At the counter the sale assistance, Julia scanned the item. Julia tries to sell the item to roger by asking for £75. Roger refused to pay £75, and reply’s to Julia that the radio is a sale item and that he had taken it from the table were all the sale item were. Julia reply’s that the item is not a sale item and she refuses to sell the item to roger for £25.

The sign displayed was an ‘invitation to treat’, were Lord Parker stated:

‘It is clear according to the ordinary law of contract that the display of an article with a price on it in a shop window is merely an invitation to treat. It is in no sense an offer for sale, the acceptance of which constitutes a contract.’

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In the above case for a contract to take place there must be an offer and an acceptance. It is clear that Electrical World was not making the offer, where customers have been invited to make offers, an invitation to treat. It is obvious that the sign Roger saw, which stated ‘last few sale items all £25 or less’ was an invitation to treat.  It is clear in the case that Roger was making the offer by taking the item to the counter, with an intention to pay £25, so Roger made an offer as he took the item ...

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