Four Step Process Law,

Topics: Contract, Contract law, Invitation to treat Pages: 7 (2476 words) Published: September 6, 2012
PART A – Four Step Process (20 marks)
Question (a) 10 marks
The legal issue in question was the elements of agreement that are required for the formation of a legal contract. The elements of an agreement that are required for the formation of a legal contract is that it should consist of both offer and acceptance. This being said, there are principles that constitute an offer and acceptance. An offer consists of the element of promissory. This means that there must be an undertaking or promise to give or do something. This is shown in the Placer Development Ltd v Cth case, where the Commonwealth agreed to pay a subsidy to timber importers an amount of money or interest rate that is determined by the Commonwealth from time to time. After an initial payment was made, it was stopped. Placer then takes into action against the Commonwealth to legally enforce the payment of subsidy. The issue that arises in this case was that should the subsidy amount which was agreed to be paid considered a legal enforceable promise. The court came to a decision that it was not a legal enforceable promise for a promise with an unspecified amount to which the promisor has yet to clearly state. (Placer Development Ltd v Cth [1969] 121 CLR 353, cited in Lambiris 2012, 248) An element of offer is that it must intend to result a contract if accepted. This means that the offer is intended to be legally binding. This can be seen through Partridge v Crittenden case. In this case, Partridge advertised Bramblefinch cocks and hens which 25 dollars each for sale. He was prosecuted by the RSPCA for illegal offering a contract selling wild birds. The issue is whether this advertisement is an offer or is just “invitation to treat”. The court held that the advertisement does not seem to be an offer for it was merely an invitation to persons who are interested in purchasing the birds to which placed an offer wishing to buy the birds where should Partridge accept the offer then be considered an agreement. (Partridge v Crittenden [1968] 2 All ER 421, cited in Lambiris 2012, 243) The exemption of items placed for sale which is part of invitations to treat as well. This is shown in the Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd case where the chemist store utilizes a self-service method of selling its medicines, some of which contains dangerous substance. Customers who shopped would select which medicines are needed and then proceed to the two exits to pay for their selection items to which both exits and such medicines are only to be sold under the supervision of a registered pharmacist. The issue is that should the medicines be considered sold the moment it was taken off the shelves. The court came to decision that it is not considered sold at the moment they were removed from the shelves as the prices on it are merely invitations made to purchase. A legally enforceable agreement was made only when the customers places the offer to purchase medicines at the cashier and was accepted by the cashier. It was under the supervision of a registered pharmacist. (Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401, cited in Lambiris 2012, 246) An offer can also be addressed to a particular individual, a specific group or the world at large. This is seen in the case of Carlil v Carbolic Smoke Ball Co. In the case, Carbolic Smoke Ball Company advertised smoke balls of preventing influenza in the newspaper and offering 100 dollars as rewards to customers. Elizabeth Carlil saw the advertisement and bought it. After using, she still caught influenza, therefore she went and claimed the reward but was refused. The issue is whether an offer to the world at large deemed to be an agreement if accepted by an individual. The decision was that the offer addressed to the world at large was a legally enforceable agreement and should be accepted by any individual who learns of it. (Partridge v Crittenden...
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