Business Law

Question 1:

The issue of this question is whether Scott and Kyle can bring legal actions against Wayne for what they feel is a breach of contract.

Under the law governing offer and acceptance, a legal contract compromises of four essential elements. The presence of offer, accecptance, consideration and an intention to create legal relations must be achieved before a contract becomes legally binding. An offer must be a specific promise to be bound by definite terms and can be determined. Of usuals, offers are made to individual parties but offers can also be made to the world at large or a specific group of persons. An example of offer made to the world at large would be an advertisment.

In Carlill v Cabolic Smoke Ball Co (1893), the company deems that the advert was not an offer hence it was not legalling binding. Mrs Carlill brought Cabolic Smoke Ball Co to the court and the court held the advert as a legal offer. Mrs Carlill should be compensated as she accepted the offer of buying and using the smoke ball.

With a counter offer, the original offer would be terminated. In Hyde v Wrench (1840), Hyde made a counter offer instead and was rejected by Wrench. After much consideration, Hyde decided to accept Wrench's initial offer but was again rejected. Hyde brought Wrench to court for breach of contract. The initial offer which Wrech made was being terminated when Hyde made a counter offer hence Wrench was not liable to the charge for breach of contract as there is no contract made.

Revocation of offers must be communicated but the notice of revocation need not come from the offeror himself. In Dickinson v Dodds (1876), Dodds offered to sell a piece of property to Dickinson and promised to keep the offer open till 12 June. On 11 June, Dickinson heard from someone that Dodds had sold the property. Dickinson then immediately accepted Dodds offer. The court held that Dickinson could not accept the offer as the offer had been revoked.

Acceptance...