Company Law

Overall Issue

The main issue this case is Katie’s concern for if there is a formation of a contract. In the confusing event, Katie’s concern brought us to several factors the we have to address. Such as a contract and its components.

A contract is a consensus ad idem, also known as a meeting of mind where both contracting parties come to a concession. It progresses from an agreement to rights and obligations that are recognized and enforceable by law.  There are four depending factors to form a contract. They are offer, acceptance, consideration and intention to create legal intention.

To have a clearer picture of an offer, it is also important to differentiate an offer from an invitation to treat. Therefore, there is an applicable law done up on invitation to treat and another to identify the offer in Katie’s case. There is also an applicable law for acceptance that will be address later in this report.

Subsequently, Katie will be advice regarding this issue.

Applicable Law 1

Issue

This issue is concerning an invitation to treat. An invitation to treat is not an offer. It does not offer a contract but invites others to make an offer to them. It is an invitation for an offeror to make an offer to the provider of the business.

Applicable Law

An invitation to treat is not an offer. It does not offer a contract but invites others to make an offer to them. It is made to the world at large. For example, a display of goods in a store, advertisements, auctions, tenders and quotations are all invitations to treat.

Examples of invitation to treat are Partridge v Crittenden, Fisher and Bell and Pharmaceutical Society v. Boots. Partridge v Crittenden is advertisement. It invites potential customers to make an offer to them by responding to advertisement. Pharmaceutical Society v. Boots illustrates the display of goods in a store. It invites customers to make an offer by taking the product to the cashier. These customers usually have an intention to buy it at the...