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Law for Management Case Study

In: Business and Management

Submitted By xujin45
Words 1537
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The coursework of Law for Management

The issue in the scenario is whether Anna had built a contract with Bella, Carol and Dora based on the Anna’s advisement in the window of newsagent and Bella, Carol and Dora’s different ways of offering to buy the club. It is referred to formation and obligations of contracts. To establish a binding obligation in contract, key component parts of a contract which are offer, acceptance, consideration, intention to build legal relationship and capacity must be proved valid. For those five elements, the principles and rules will be analysed firstly, and application related to issues will be dealt with in terms of Anna, Bella, Carol and Dora respectively in turn. Ultimately, their contractual relationship with Anna will be concluded.

Anna
In the current situation, we are investigating whether Anna’s card in the window is an invitation to treat or an offer. An invitation to treat is only an expression to attract a party to enter into negotiations while an offer is a statement promised by one party to enter into a contract on a particular set of terms. According to a general rule, an advertisement of goods for sale is not regarded as an offer, Partridge V. Crittenden. Its intention does not intend to be bound by any acceptance without further negotiation; otherwise, Anna would be bound to provide everyone who received the club. Although it has an ‘offer’ in the content, the statement is still seemed as an invitation to treat, Spencer V. Harding. Moreover, the advertisement is not clear enough to be an offer as the price is at ‘£300 or nearest offer’, which is not a fixed price and thus need further negotiation. Therefore, Anna is under no obligation to sell the club.

However, the advertisement can also be held to be an offer, forming a unilateral contract. A unilateral contract agrees to be bound if an offeree performs some

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