Contract Law

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Contract Law

Contract and its Elements1

Case a1


Revocation of Offer1

Recipients of Offer1

Exceptions to Offer2

Case b2

Rules of Acceptance Communication2

Postal Rule2

Case c3

Counter Offer3

Payment Provisions3

Description of Goods and Services3



Contract Law

Contract and its Elements

The contract is a mutual agreement in which two or more parties exchange the products or services with the intention of following any legal obligations involved in the process. Thus, contracts are legal bindings and have certain conditions that need to be met:




Intention of legal relation

These elements are essential elements of any contract. The contract is not legal if any of the elements is missing. The three cases discussed in this assignment are evaluated against above mentioned elements to find out if in each case the contract is formed between the parties or not.

Case a


Advertisements and brochures aim to attract the individuals towards the products and services. Under the contract law, advertisements are not an offer but are a way to request the offers. If publishing in advertisements forms the contract, then it would have resulted in commercial consequences that are not tolerate able. The advertisement is not a contract itself otherwise a single advertisement would have resulted in multiple contracts for one product. Thus, advertisements are invitation to treat. This is also seen in Grainger & Sons v Gough (1896) that the price list of wine circulated by the seller is only an invitation to treat and not the offer to sell wine at stated prices.

Advertisements for products selling are also different from unilateral contracts. When a person advertises to sell any product, it does not legally bind him to sell the product. Advertising Apply Mac Pro by the seller is a preliminary negotiation that is made to invite other parties in order to make an offer.

Revocation of Offer

There is also possibility of revocation of offer in the case of advertising the product. If contract exists between the parties, then one party has promised the other party to take specified action against another action. Thus, the offer becomes irrevocable in that case. However, in the case of advertising the product, there is no contracted obligation on any party that needs to be fulfilled in order to constitute an offer (Hogg 2011, pp. 152). The advertisement in this case is only an offer to form unilateral contract but it does not establishes any contract. Thus, the party who has made offer through advertisement has right to revoke the offer and can practice the willingness to either enter into the contract or not. The selling party also has right to revoke offer if it runs out of the product before any customer responds and shows willingness to buy the product.

Recipients of Offer

The purpose of advertising sale of any product is to attract the audience without any specifications and particular details. The potential customers include anyone who may be interested in buying the product (Hogg 2011, pp. 159). On the other hand, in case of a contract, the recipient is specified in the contract details as specification of recipients is one of the most ...
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