Law of contract Case Study Example | Topics and Well Written Essays - 2000 words

Law of contract - Case Study Example In this scenario,there are two questions which arise.First,is the price of 100 listed in the newspaper advertisement binding on Wedding Heaven in the event that they sell the dress.Secondly,does the delay of John cause him in law to have accepted the contract offer of the lower amount of 150In order to give effective analysis to this question it is important to look at relevant Irish case law on this issue in order to determine whether or not such actions constitute a binding contract enforceable in law. There are a number of leading cases in both the Irish jurisdiction and other common law jurisdictions, notably England, which need to be assessed in order to consider this question.This essay shall first analyse the formative components which are necessary for the formation of a contract. Secondly, after assessing the relevant law, these principles will be applied to the current scenario above. Finally, and in conclusion, this paper shall decide whether or not a claim exists in contr act law in the scenario again either Wedding Heaven, or John the DJ. We now turn to the basic contract law principles which currently exist in Ireland.First, we must look at the relevant contract law principles on order to ascertain the current state of the law in Ireland. There are a number of requirements necessary for the formation of a valid contract. This includes offer and acceptance, an intention to create legal relations; and finally consideration. It is the first two elements which this paper shall concentrate on. Offer It is important at the outset to distinguish between and offer and a mere invitation to treat. An offer is when the seller sets out in certain terms what they propose to sell to the potential buyer. In essence, it is the final set of terms which, if accepted by the buyer, would create a valid contract. However, an invitation to treat is not a formal offer, but rather an indication of intent to enter negotiations. It is not possible to accept a mere invitation to treat in order to create a binding contract. Therefore it is important to ascertain the exact intent of any representation as to whether it is a formal offer or simply a declaration of intent. Such declarations may be considered as offers under statute1 or common law2. In general, advertisements are considered to be an invitation to treat. In the English case of C.A. Norgren Co. v Tech-nomarketing,3 Walton J refused a committal order against one of the defendants for allegedly breaching an undertaking given to the High Court that the defendants would not "make, offer for sale, sell or distribute" items that were subject to copyright.4 The defendants distributed a price list and brochure, including an item covered by the undertaking. Walton J. upheld the contention of the defendant that, generally, the distribution of advertising material constituted an invitation to treat and was therefore not an offer. In order to gauge the intention of the seller, this can either be express by way of direct words, or implied by his actions. It has previously been held in case law that a personal quotation of the price of goods was merely an invitation to treat.5 Further, it has also been held that a display of goods for sale with the price labels attached is in all probability only an invitation to treat, whether the products are in a shop window, on a store shelf or indeed in a self-service store6. One of the leading cases is that of Fisher v Bell7 where a shopkeeper displayed in a knife with a price ticket in his shop window. He was charged with offering a flick knife for sale in contravention of the Restriction of Offensive Weapons Act 1959 s1. It was however held that the shopkeeper was not guilty because displaying the knife in the shop window amounted merely to an invitation to treat. Accordingly, the shopkeeper had not offered the knife for sale within the 1959 Act. Further, In the leading English case of Pharmaceutical Society of Great Britain