Assignment 1

Consumer Law

1. A contract is an agreement between two or more people which creates an obligation to do or not do something. The agreement creates a legal relationship of rights and duties. There are three elements necessary to create a contract: offer and acceptance, consideration and intention to create legal relations. One person makes an offer, the second person must accept the offer and there must be consideration exchanged. For a contract to be legally binding not only do the people to the contract have to get something in return but they must also give something in exchange e.g. selling a car and receiving money.  Implied terms are incorporated into the contract and the parties are not aware of their existence. These terms are that the goods are satisfactory quality, fit for the purpose and as described (sale of goods act 1979). Problems only arise when these terms are broken. Theses terms are implied to the intension of the parties by statute, custom or common law.

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In the case of Julie she has made an offer by conduct to buy the shirt from the shop. There has become a legal binding agreement with her and the shop. She has taken consideration by giving money in exchange for the shirt and also intension to create legal relations. As to this purchase there is a contract between Julie and the shop. This situation is similar to case Carlill v Carbolic Smoke Ball Co 1893 where an advert was placed for smoke balls to prevent influenza. The advert offered to pay £100 if anyone contracted influenza after using ...

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