Business Law - Case Study - 1905 Words

A. Known Facts John wanted to extend his house and built an office from there. He approached Sue after locating an advertisement from the Yellow Pages. As Sue’s price did not seem reasonable, John then approached Drawit Pty Ltd, which charged a hundred dollar less. John paid a deposit. Later, John went to Franks Hardware and Timber Yard. He made known to Frank, the sole proprietor, the purpose and requirement of the materials and placed an order. John signed a standard form contract and paid a deposit. Two months later, problems arose which caused John to delay his business. John incurred financial losses. B. IDENTIFYING THE ISSUES 1.0 CONTRACT BETWEEN JOHN FRANK. It is obvious that there is a contract†¦show more content†¦2.0 CONTRACT BETWEEN JOHN SUE. 2.1 Offer or Invitation to Treat? First, we need to distinguish offer from invitation to treat. An invitation to treat is an invitation to others to make an offer. Generally, an advertisement amounts to an invitation to treat. This is held in Partridge V Crittenden [1968] 2 All ER 421, where Sue will be inviting John to make an offer. However, there is an exception. An advertisement can also be an offer. This can be illustrated in Carlill V Carbolic Smoke Ball Co [1893] 1 QB 256 in which Sue might probably argue that it was an offer. This being the case, Sue is the offeror will stressed that the offer was assumed to be accepted by John upon saying â€Å" I think that’ll be okay †. An offer, once accepted, cannot be revoked. Therefore there will be a binding contract. Assuming that it is an offer, it can either be a counter offer or a mere request for more information. 2.2 Counter Offer or Mere Request for More Information? An offer will be rejected if there is a counter offer. A counter offer tampers with the original condition of the offer, it rejects the original offer and can no longer be accepted at later date. Looking at the words used in John’s reply â€Å" I hadn’t expect it to be so high †, it is possible that this was either an acceptance with a request for more information, or a counter-offer. If the court found the facts hereShow MoreRelatedBusiness Law Case Study1437 Words   |  6 Pagesï » ¿Business Law Case Study Module 4 PLAINTIFFS STATEMENT: The Parties – Alex Johnson vs. Bethlehem Ice Solutions    Opening Argument    Those familiar with skiing know that there are risks involved when one chooses to participate in the sport.   Those risks, however, should be associated with self-inflicted harm caused by mistakes that a skier may make and not unforeseen obstacles and dangerous situations.   The injuries sustained by Alex Johnson on the slopes at Bethlehem Ice Solutions (BIS) were notRead MoreBusiness Law Case Study1954 Words   |  8 PagesCase Jonathan, a moneylender makes a loan of $1,000 to Sheba on Sheba’s representation that she is 19 years old. Sheba is in fact 17 years old. 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