Business Law Cases Summary

Topics: Contract, Contract law, Breach of contract Pages: 19 (4285 words) Published: November 22, 2012
Offer ( Topic 3)
Is a proposal the acceptance of which establishes the existence of an agreement. It shows a promissory intent. In other words, it is a promise to do or refrain from doing something. - Usually upon condition that the other party agrees to do or refrain from doing something else in return. - Harvey v. Facey

Harvey sent to Facey a telegram to buy Bumper Hall Pen. He asks Facey to telegram the lowest price. Facey telegram the lowest cash price £900. Harvey says agree to buy for £900. Principle: Offer is more than a mere supply of information - Offer must show promissory intent

- Australian Wooden Mills v Commonwealth in where the government ”offer” did not ask anything in the return - Offer is not Invitation to treat and must be distinguished from ITT

Invitation to Treat
Is an action by one party which may appear to be a contractual offer but which is actually inviting others to make an offer of their own. Invitation to treat lacks of promissory intent

1. Boots Case (Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd) Self service

PS sued Boots cash for breach of pharmacy and poison act by selling certain poison not under supervision of registered pharmacist as boots cash is a pharmacy in a self service basis. However, there is one registered pharmacist in the cashier check out point. Principle: In the self service system, the offer is made by customer at the checkout point of sales while the acceptance is made by the cashier at the checkout point of sales as well.

2. Fisher v. Bell Shop Window

Bell selling the flick knife which is showed in the window displayed. Bell was sued for offering the knife which is prohibited at that time by statute. Principle: The display of an article with a price on it in a hop window is merely an invitation to treat.

ITT can be an offer if:
- Show promissory intent
- Limited to who can accept
- Limited to what can be accepted

Offers to the World At Large
Offers that are not directed to any specific person, but to anyone who becomes aware of them.

1. Carlill v. Carbolic Smoke Ball

Carbolic smoke ball advertise promised reward to anyone who contracting influenza after using their product. To show the seriousness, they placed money £1000 in account. Mrs C used it and contracted influenza. Principle: An offer can be made to the world at large. The contract is made to limited portion of public, who perform the condition on the advertisement. And it show promissory intent.

Offer must be communicated
Offer becomes effectives if it is communicated and there is meeting in mind when they accept it. However, offeree must be aware of its existence and terms.

1. R. v. Clarke

Reward for information about murder of 2 policemen. Clarke was arrested and to save himself, he gave the information. Principle: Offer must be accepted with the knowledge of the offer.

Respon to Offer
- Accept - Clarify - Counter Offer - Reject - Do Nothing

Counter Offer
Rejection of the original offers which make the original offer to an end, and form a new offer. If the Counter Offer being rejected, the original offer will not revive, unless the offeror renew it.

1. Hyde v. Wrench

Wrench made an offer to sell his farm to Hyde for £1000. Hyde says that he will pay £950. Wrench says no, and Hyde say want to pay £1000. Principle: Counter offer resulting the original offer to end. It is rejection of the first offer.

Counter offer must be distinguished from mere inquiry

2. Stevenson Jacques v. McLean

McLean made an offer to SJ to sell certain iron. In reply, SJ write “will accept 40 over 2 months”. As it is no reply, SJ write again to accept the 1st offer. Principle: Seeking clarification is not counter offer, but mere inquiry.

Only the offeree who are directed to accept the offer by the offeror

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