CONTRACT LAW

Contract Law

Contract Law

The term misrepresentation in contract law refers to the fact that is false and is quoted by one party to the other. This means that one party is trying to induce the other by taking him into contract. For instance this includes false statement made by a seller to the customer. An example that is quoted here is of Billy. Billy saw a Mont Blanc watch and asked the shop keeper whether it is made in Germany? The shopkeeper In return was not sure and replied that yes it is made in Germany because he wanted to sell his watch at that time. When Billy went home and researched on the watch, he came to know that the watch is not German made but instead made in Switzerland. On the next day, Billy brought his watch back to the shopkeeper and wanted his refund as it was a fraud and the shopkeeper lied to Billy that Mont Blanc is made in Germany. This case shows consists of a voidable contract as the buyer party would withdraw from the agreement as there existed a misrepresentation by the second party i.e. the shop keeper.

According to (Quinn, 2007), the person who make offer called 'offeror' and person to whom the offer is made is known as 'offeree'. Offer can defined as a communication that treated as an offer if it specifies the terms where 'offeror' is prepared to make an agreement to the 'offeree'. Besides that, an offer refers to a promise to be bound on certain specific terms. Offer is promised to be bound in a certain specific terms. In Section 2 (a) of the Contract Act 1950 refers to an offer which is made when a person suggest to another person with his willingness to act and with the target to obtaining the assent of the other. According to Contract Act, an offer is something that is capable of being converted into an agreement by acceptance. Case (Carlill v Carbolic Smoke Ball Co), Carbolic Smoke Ball co had stated in an advertisement that £100 will be rewarded to any person who after using the ball and still caught flu. However, Mrs. Carlill bought and used the smoke ball and ended up with flu. Therefore, she claimed the £100 from the company and they refused to pay her even receiving letters from Mrs. Carlill's husband, who was a solicitor. In the end, Mrs. Carlill sues the company. Mrs. Carlill sued, arguing that there was a contract between them (Stephens, 2011). Therefore, the argument was discarded by the court. The court held that the advertisement did represent an offer, which became a contract when it was accepted by Mrs. Carlill who used the smoke ball and caught flu. Therefore, she was entitled to the £100 (Coleman, 2009). For example, Katrina goes to shopping and saw a nice dress. She walks in the shop and ask the sales person to sell the cloth to her at price http £50, sales person ...