Business Law Assignment

Identification of issues

This question raises the following issues:

1. Is there breach of contract between Sg Long Nature’s Club and Azim?

2. Can Azim get the 500 cc motorcycle from Sg Long Nature’s Club without 500 cc motorcycle’s driving license?

Explanation of the laws

Proposal is made when one person is willing to do something with a view to obtain the assent of the other. Invitation to treat is a communication that passed at the negotiation stage to receive offers. It is differ from offer or proposal. The example of invitation to treat is advertisements. Advertisements can also be considered as offers in some specific cases. However, it usually is an invitation to treat. Display of goods, auction and tender are other examples of invitation to treat. In the case of Harris v Nickerson, the plaintiff upon seeing an advertisement of an auction and he travelled to the auction venue only discovered that the auction had been cancelled. The plaintiff then claimed for his loss of time and travelling expenses. The court held that the plaintiff could not claim for his loss of time and travelling expenses from the defendant because the advertisement for the auction was not an offer but a mere invitation to treat. However, it is essential to note that not all advertisements are an invitation to treat. It can be an offer to which another party can accept. The intention of a party determines whether it is an invitation to treat or a proposal. In the case of Carlill v Carbolic Smoke Ball Co, the defendant advertised that they would offer a sum of 100 pounds to anyone who would still suffer to influenza after using their product called “smoke ball” according to the instructions for a fixed period. The plaintiff read the advertisement and used the product accordingly but still contracted with influenza. She claimed the 100 pounds from the defendant but the defendant refused. The court held that the advertisement was an offer to the world at large and those who were...