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Introduction to business law
Finance & Accounting
Pages 7 (1757 words)
Answer to Question #1 Eddie has a legally binding contract with Adele. Generally, price quotes are not offers for it is no more than an invitation to treat. The courts will look at the language used in the light of the circumstances in which it is used and into the subsequent actions of both parties to determine whether what is said by the seller is a mere quotation of price or an offer to sell as held in the case of Canadian Dyers Association vs…
It can be gleaned from the communications made by herein parties their intention to enter into a contract. Under s.64 of Restatement, acceptance given by telephone or other medium of substantially instantaneously two-way communication is governed by the principles applicable to acceptances where the parties are in the presence of each other. Hence, if Eddie had intended to revoke the contract, he should have manifested the same on Tuesday. In the case of Megalift v Terminals  NSWSC 324, the court ruled that both parties were already in negotiation, discussing terms and details such as transportation and delivery. These conversations involved quotations and although no fixed price was agreed upon, it was nonetheless a contract, which was legally binding. Moreover, her Honour disregarded the quotation for the purpose of a budget only. This did not prevent the parties from contracting. Answer to question # 2. Unfair Contract Terms Act 1977 (UCTA) places a number of restrictions on the contract terms businesses can agree to. ...
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