CONTRACT LAW

Contract Law

Contract Law

Introduction

The report is based on two sections. Section one discusses the development of the principles that underpin Offer and Acceptance in English contract law. The second section of the paper is based on the analysis of the case scenario of Farah. Basically, the main theme of the case is based on the contract law. Farah operates a small business from a shop called 'Mystic Journeys'. She sells clothes and equipment for trekking and camping based activities. The case is divided into 4parts with the offer and acceptance case scenarios. Initially, in the case Farah give an offer on company website about the product sell prices and later she gave offer to her sister Zara. Two of the person in the scenario Fabian and Aki showed their interests towards the purchase of the goods that are offered by Farah in different prices. Later, in the last part of the scenario, Farah sold out the 9 bronze compasses to the 9 person who read Farah's offer in the newspaper advertisement. The report advice Farah on these issues:

Whether she is obliged to sell Peter the reduced cost compass.

Fabian turns up to ask for his 20 Jackets as requested in his email.

Her sister Zara turns up eager to obtain the Gold compass at a much reduced rate.

Jon also turns up to collect the Bronze compasses.

Development of the Principles of Offer and Acceptance in English Contract Law

A contract is an agreement between parties which is binding in law. Furthermore, the privileges and obligations of the parties under a contract may be enforced by the courts. The enclosures may compel presentation of contractual obligations by the party in default or, more routinely, may accolade damages for breach of contract. Discussion takes location between the parties before an agreement becomes binding and a contract formed. It is significant thus to identify the precise instant when a contract form. An offer is a declaration of enthusiasm by one party to go in into a contract and comprises of exact and characterised terms (Stone 2009, p. 51).

The Offer

An offer is a proposal addressed to specific persons indicating an intention by the offeror to be bound to the sale or purchase of particular goods for a price [New Zealand Shipping Co Ltd v Satterthwaite (AM) & Co Ltd (1975) AC 154 (PC)]. The pro forma invoice shown inExhibit 10-3 (page 539) is an example of an offer commonly used in international trade. Should there be some doubt whether a communication is an offer or not, CISG directs a court to ascertain if the offeror communicated an intention to be bound. This can be determined from the general rules of interpretation in Article 8 of the convention that is, by looking at the offeror's proposal within its full context, including any negotiations, any practices between the parties, any usages, and any subsequent conduct. It can also be determined from the subsidiary rules contained in Article 14 (Stone 2009, p. ...