Sunday, November 12, 2006
Instead of idling away, i decided to pen down what i've memorise for my bizlaw test tmr.dont bother to read this entry.
a) Display of goods in a shop window/store
Displaying of goods in a shop window/store is an invitation, not an offer. It merely invites potential customers to make offer for the good at a stated price. If the passerby enter the shop, pay the price and demand for the good, the shopkeeper is not required to sell the good. The demand of the customer's offer is to buy the good, which the shopkeeper have the freewill to either accept or reject the offer.
b) Advertisement for calling tenders
Invitation to treat is not an offer. it's merely inviting others to negoiate or to make offers which then, may or may not be accepted.Invitation to treat,itself cannot be accepted so as to form a binding contract.Advertisement for calling tenders is an invitation to treat, not an offer. It merely invites potential supplier to make offer.
c) Advertisement, Circulars & catalogues
Invitation to treat is not an offer. it is merely inviting others to negoiate or to make offers which then may or may not be accepted. Invitation to treat itself, cannot be accepted so as to form a binding contract. Advertisement, circulars & catalogues is an invitation to treat, not an offer.
d) Supply of information
Very often, during negoiation, the party may provide product information such as price at the request of the other party. Giving of such information is an invitation to treat and not an offer.
Advertisement for rewards
Generally, advertisements are invitation to treats, not an offer. However, if the advertisement stating that a sum of money will be paid if the reader performs an act, is actually an offer, not a invitation to treat. If the reader return the property or provide informations, knowing of the reward offer, he is entitled to claim the rewards. Offers must be communicated to the offeree. The offeree cannot be said to have accepted the offer without knowing what's the offer.
Revocation by the offerer:
The offerer can withdraw or revoke his offer at anytime before the offeree's acceptence. It is effective only when it is communicated to and recieved by the offeree. If the offerer wants to revoke by letter,revocation is complete when the letter is recieved by the offeree and not when it is validly sent out.
Rejection by the offeree:
Rejection by the offeree terminates the contract once recieved by the offerer. Since the rejection by the offeree terminates the offer, the offeree cannot later consider and accept the offer.
Rejection by counter offer:
Counter offer is made when the offeree introduces new terms or changes into the contract. An counter offer terminates the orginal offer. the party who makes the original offer may accept the counter offer and form a binding contract. however, the party who makes the counter offer cannot later change his mind and accept the original offer.
Acceptance is effective only when it is communicated to and recieved by the offerer.
Acceptance by silence:
The party who do nothing to the offer cannot be said to have accepted the offer. the offerer may put a condition in the offer that silence consitute to acceptance w/o the offeree's consent.
Postal acceptance rule:
When the offeree accepts the offer by letter, it is effective and completely once is is validly sent out, whether or not, it ever reaches the offerer.
An agreement cannot be legally enforced unless supported by a consideration. Consideration means that the party who promise the other is not required by the law to fulfil the promise unless the other party obtained something in return. Promises that are not supported by consideration are called gratutious promise.
a)consideration must have economical value:
Consideration must have economical value,however small. Love and affection has no value consideration.
b) Consideration must be sufficient but need not be adequate:
So long the something in return is of some value, the courts would not ask if the value of the "something" is proportionate to the offer. In general, the courts would not ask if the offer is a bad bargain.
c)Performance of exisiting obligation owed to the promisor cannot be consideration for further promise.
d) Consideration must move from the promisee.
The person who wants to sue for breach of contract must be the one providing the considering. He cannot rely on other's consideration.
e) Consideration must not be a past consideration
Past consideration means that the party performs and act before the other party makes the promise. past consideration is not valid.
f) Part payment is not adequate consideration for a promise to discharge the debt
At common law, the creditor who promises to accept part payment and forgo the balance is not binding as the debtor did not provide any consideration for the promise. By making part payment, the debtor is simply performing exisiting obligation on the creditor. However, if the debtor did something that he is not required to do previously, he would have provided consideration for the creditor's promise; e.g. ealier date of payment or different currency.
10:43 PM