Essay on contract law

Submitted By samba93
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In this essay I will be discussing whether Adam has completed any binding agreements-in-law to supply tablet computers to Bilal, Clair or Dewan. After I have discussed this, I will then be able to advice Adam whether he is in a legally binding contract.
A contract is an agreement between two or more clients which is legally enforceable when executed in accordance with specific requirements. All clients should understand the key terms included within a contract and also the rights and responsibilities under that contract. An offer needs to be distinguished from an invitation to treat. Whereas an offer will lead to a binding contract on acceptance, an invitation to treat cannot be accepted it is merely an invitation for offers.
Bilal left a message at 9am on Saturday 2nd December on Adams answer phone which was a request of 500 units for immediate delivery. Adam distributed flyers which were only an invitation to treat, a case that would go with this would be Fisher V Bell, in this case the defendant had a flick knife displayed in his shop window with a price tag on it. Statute made it a criminal offence to 'offer' such flick knives for sale. His conviction was quashed as goods on display in shops are not 'offers' in the technical sense but an invitation to treat. The court applied the literal rule of statutory interpretation1. Also in Partridge V Crittenden, the defendant placed an advertisement in a classified section of a magazine offering bramble finches for sale. Section 6 of the Protection of Birds Act 1954 made it an offence to offer such birds for sale. He was then charged and convicted of the offence and appealed against his conviction. The defendant's conviction was quashed as the advert was an invitation to treat not an offer. The literal rule of statutory interpretation was applied.2 Lord Parker CJ said, 'I think that when one is dealing with advertisements and circulars, unless they indeed come from manufacturers, there is business sense in their being construed as invitations to treat and not offers for sale.'3 These cases tell us that Adams flyers were an invitation to treat and not an offer so he is not in a legally binding contract with Bilal.

Clair emailed Adam on the 2nd of December at 10am explaining that she would purchase 80 units provided he could supply them at a discount price, however Adam states in his flyer that the minimum order to purchase the tablets is 100 units, this means that Adam is not legally obliged to provide Clair 80 units. But later during the day, Clair emailed Adam again at 3pm stating that he should ignore the previous email that was sent as she now wants to purchase 200 units. Clair was making a counter offer when she sent the second email at 3pm, as the first email declines the offer that is made by Adam on the flyer as Clair provides her own terms. This also means that Adam is not in a legally binding agreement with Clair. Adam declines the offer on the 5th of December after he received a message on the 4th of December from his suppliers that they will not be able to supply anymore units. A case that would be relevant to this argument would be the case of Hyde V Wrench, where the defendant offered to sell a farm to the claimant for £1,000. The claimant in reply offered £950 which the defendant refused. The claimant then sought to accept the original offer of £1,000. The defendant refused to sell to the claimant and the claimant brought an action for specific performance. There was no contract. Where a counter offer is made this destroys the original offer so that it is no longer open to the offeree to accept.4
Furthermore, in regards to Dewan’s situation the postal rule takes place, the postal rule states that where a letter is properly addressed and stamped the acceptance takes place when the letter is
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