Business Law

Topics: Contract, Contract law, Offer and acceptance Pages: 2 (595 words) Published: March 31, 2013
Question 1 (b)
The problem looks at whether the existence of contract entitled Albert to claim for a breach of contract from Charlie with four elements of contract to be established here: that the offer been made by Albert and has been accepted by Charlie, that parties intend to create legal relationship and that the consideration was provided. The issue here is to determine if a reasonable person would consider offer had been made. An offer may be described as the indication of one person to another of his willingness to contract on specified terms. In Patridge v Crittenden, the advertisement was an invitation to treat. Charlie’s advertisement is merely an invitation to all his friends of attending the party. The fact seems that Charlie is not making an offer but an invitation to treat. However, an offer had been made by Charlie’s friends as their willingness to make the entry fee payment of $5 for the party. Therefore, I consider an offer was established. Another issue to consider is whether the offer been accepted. In Masters v Cameron shows that acceptance must be final and unqualified assent to terms proposed by Offeror. Charlie has accepted the offer of providing a “ride” and BBQ to his friends. Therefore, I think the offer has been accepted. A contract was formed with offer and acceptance fulfilled. However, the courts look at another two elements of the contract. To prove if the parties intention to create a legal relationship, the courts looks at the types of agreement that was bound by the parties. According to Balfour v Balfour the agreement was of a social nature, there was no presumption of intended to enter into a contract. The fact of social agreement between Charlie and his friends seem to be presumed that there was no intention to create a legal relationship. However, the presumption of no intention to enter into legal relationship can be rebutted in social agreement. In Simpkins v Pays, It was clear that parties must have contemplated that...
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