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Law of Contract - Coursework Example

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Law of Contract

In the understanding of contract law, an ‘invitation to offer’ is defined as follows: “An invitation to the offer is a pre-determined proposal which is intended to generate an offer from the bidder of goods for a consideration, in order to effectuate an agreement.” In the case of British Car Auctions v. Wright1, we can further understand the definition of ‘invitation to offer’ in the context to the situation at hand: “There is no offer to sell, but always an offer to buy.” From this definition, we can analyse the effect of the email sent by Computerland to Cwmfelin University. Applying the definition in the case, the email sent by Computerland was not an offer, since there cannot be an offer to sell, but only an offer to buy. The actions on the part of Computerland further describe that it was a pre determined act, which intended to generate an offer from the buyer of the goods, Cwmfelin University in this context. Therefore, it can now be concluded that the mail sent by Computerland, having the intentions to generate an offer from Cwmfelin, was in fact an invitation to offer. The invitation was sent by Computerland, enticing Cwmfelin University to offer them a consideration for the delivery of Computers to the University. The fact that Computerland invited to an offer has now been established as a precedent which shall be followed to solve all the three problems given in Task 1 of the paper. In the first problem, we figure out that Cwmfelin University, after having accepted the offer to invitation from Computerland, offered to buy 50 Avocado machines at the price of 220 Pounds each, which shall be delivered to the University by the 15th September, at the latest. This was the offer made by Cwmfelin University to Computerland. After having received the offer, Computerland replied in this fashion: ““Thank you for your fax, which is receiving attention.” An agreement requires two ingredients to be fulfilled in order to be binding on the parties to enter into a contract. These are: a) Offer b) Acceptance of an Offer An ‘Acceptance to the Offer’ is defined as follows: “The act of communicating the offeror, informing him on the acceptance of the offer made by him, in exactly the same way the offer was made, and abiding by the conditions laid out in the offer.: Applying the law to the facts, we can infer from the statement made by Computerland does not amount to the acceptance of the offer which was delivered to them. The fact that the offer is still receiving attention implies that the offer is being considered either for a counter offer, for the acceptance of the offer or for the declination of the offer. There is no acceptance at this stage of time, and a decision as to what needs to be done is yet to be taken. Therefore, understanding from the principles of law and facts, it should be assumed that there was no agreement between Computerland and Cwmfelin University. The offer was still under negotiating terms, and Computerland had not made up its mind on the acceptance of the offer. Finally, Cwmfelin revoked the offer from Computerland, asking them not to send the computers. However, Computerland, without communicating its acceptance, did deliver the computers. It involves the performance of a contract which did not exist at the stage of actual performance. Cwmfelin University is safe under this situation, and the act of revocation of the offer stands valid, as ...Show more

Summary

Law of Contract Task 1 Part A Computerland dispatches the ‘Avocado’ computers but, before the computers arrive, the University telephones to say that it no longer wants them. Let us analyse the facts before going into the arguments for our client Cwmfelin University…
Author : tristonrolfson
Law of Contract essay example
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