Built Environment Law

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        Built Environmental Law Assignment        

Built Environment Law

BN1104

December 2002 Assessment

Tutor

Julie Cross

Written by

Paul Angus

Replying to a newspaper advertisement to order specific goods by post can be compared with stepping into the unknown. Not only is the customer required to pay for the goods advertised up front, but also an element of good faith is required in order to receive the correct goods ordered. Compared to anyone entering a shop who has the opportunity to inspect & review the goods on show before happily handing over the money to purchase them. This essay will concentrate on a particular purchase of goods between Lisa and M.J. Electrical. Having advertised a top of the range video recorder in a newspaper, Lisa took up the offer and duly sent a cheque for the money stated in exchange for the video advertised. However, instead of receiving the model advertised, she actually received a model that was not up to the same specification.

To advise Lisa as to the best course of action to take it is necessary to examine the Law of Contract. This essay will attempt to examine the various options available, although in doing so the legal implications over the dispute between Lisa and M.J. Electrical require the relevant rules on  formation of contract to be explained to fully assess the situation. Also relevant information on past law cases will be quoted if seen to be relevant to give examples to support them. The reference material used will be stated within the Bibliography, however most of the cases provided for example will have been referenced from the course work notes provided by the Course Tutor Julie Cross.

There are four essential, though basic elements to be considered in order to establish formation of contract. Any simple contract must fulfill the following:

  1. An agreement between both parties,
  2. Intention to be legally bound by that agreement,
  3. Certainty of terms of agreement,
  4. Consideration provided by each of the parties.

In order for any contract to exist one party must make an offer and the other must accept it. The person or group making the offer is known as the offeror and the person or group whom the offer is made is the offeree. An offer may be expressed or implied, Thornton v Shoe Lane Parking Ltd (1971) (1), the customer at the entrance to an automatic car park put money into a machine, which issued a ticket to him, this is deemed as acceptance of the offer.

It is important to establish the difference between an offer and an invitation to treat, basically if there is no promise, there is no offer. Gibson v Manchester City Council (1979) (2), A council tenant interested in purchasing their house completed an application form and in turn received a letter from the council stating that it ‘ may be prepared to sell the house to you’ for £2,180. Mr. Gibson, after ironing out a few queries sent a letter asking the council to ‘carry on with the purchase as per my application. Following a change in political control of the council in May 1971, it decided to stop selling Council houses to tenants, and Mr. Gibson was duly informed that the council could not proceed with the sale of the house. Mr. Gibson brought legal proceedings claiming that the letter he had received, stating the purchase price was an offer which he had accepted on 18th March 1971. However, the House of Lords,  ruled that the Council had not made an offer, the letter giving the purchase price was merely a step in the negotiations for the contract and amounted only to an invitation to treat. Its purpose was simply to invite the making of a ‘formal application’, amounting to an offer, from the tenant.

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It is essential that an offer must be communicated before it can be accepted and an offer may be to a particular person or to the world at large. The offer must be clear, complete and final in order for the offer to be contractually bound in the event of a proper acceptance being made. Once the acceptance has been agreed the terms of the offer now become the terms of the contract, made by that acceptance.

There are generally two types of offer, known as bilateral and unilateral contract. Bilateral contract requires an acceptance in the form ...

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