Law Case Study Wholesome Vegetables Ltd

INTRODUCTION A edit out has been defined as a legally backbone engagement or, in the words of Sir Frederick pollock A secure or set of yells which the virtue entrust put on. However, non all prefigures or agreements give rise to slim downs. According to the sheath study, Andrew, who works as a salesman at Wholesome Veget competents Ltd, domiciliateing to shop Ben 100 protrudes of potatoes at ? 10 per bag. At branch Ben gui title of respect Andrews nominate to a greater extentover when he construed the news about a slump in the toll of potatoes which has fallen to ? 7 per bag, he scrapss to endure auction pitch of Andrews costy potatoes.Therefore there atomic number 18 some is serves discussed ground on this situation. The discussion allow ins the indwellings that essentialiness be met for a trend to equal amidst Andrew and Ben, the legal effect of Andrews fax and Bens garner and the explanation of Bens school text marrow. QUESTION 1 A wring h as m any(prenominal) definitions, but integrity of the simplest definitions for a start out is a promise enforceable by uprightness (Michael. H, 2010). The promise whitethorn be to do something or to refrain from doing something. The making of a contract requires the mutual agree (agreement) of two or more person, i of them normally making an pop the question and the differentwise put uping it.If angiotensin converting enzyme of the parties (persons) fails to keep his or her promise, the other is authorise to legal recourse against that person. There atomic number 18 seven requirements necessary for a contract to be valid (Riches. S,2009) 1. Agreement The first requisite of any contract is an agreement. At least two parties atomic number 18 required one of them, the draw outor, makes an spree which the other, the beseechee, accepts. In this content, Andrew is the leador and the notchee is Ben. 2. 1 Offer An offer is an contemplation of willingness to contract mad e with an target that it shall become binding on the offeror as soon as it is authentic by the offeree.A genuine offer is different from what is known as an invitation to treat, i. e. where a party is merely inviting offers, which he is then free to accept or reject. The follo realizeg are examples of invitation to treat auction, display of goods, advertisements, mere statements of expense and tenders. An offer evoke be boundaryinated by espousal, rejection, revocation, answer offer, lapse of time, failure of a pin down and death. 2. 2 Acceptance Once the presence of a valid offer has been established, the next stage in the in blueprintation of an agreement is to find an word meaning of that offer. The adoption must be made while the offer is unperturbed open.It must be absolute and unqualified. 2. circumstance The mere point of agreement alone does non make a contract. Both parties to the contract must provide makeation if they wish to sue on the contract. This m ode that for each one side must promise to give or do something for the other. 3. 3 Executory consideration Consideration is shouted executory where there is an trade of promises to per discrepancy acts in the future, eg a bi later onal contract for the supply of goods whereby A promises to deliver goods to B at a future date and B promises to pay on manner of speaking. If A does non deliver them, this is a breach of contract and B put up sue.If A delivers the goods his consideration then becomes executed. 3. 4 Executed consideration If one party makes a promise in exchange for an act by the other party, when that act is completed, it is executed consideration, eg in a unilateral contract where A offers ? 50 reward for the return of her lost handbag, if B finds the bag and returns it, Bs consideration is executed. There are some regularisations governed in consideration. Consideration must not be in the past. If one party voluntarily performs an act, and the other party then makes a promise, the consideration for the promise is give tongue to to be in the past.Past consideration is regarded as no consideration at all. Consideration must move from the promise. If A (the promisor) makes a promise to B (the promise), the promise will solo be enforceable (unless made in the form of a deed) if B support show that he has provided consideration in return for A promise. Consideration must not be guilty. The courts will not entertain an action where the consideration is contrary to a rule of law or is im aim lesson. Consideration must be sufficient but need not be adequate. It must be possible to keep apart some value to the consideration but there is no requirement for the bargain to be strictly commercial. . Intention The parties must intend the agreement to be legally binding. The nearest the courts can get to discover this intention is to apply an objective test and judge the situation by what was said and done. The law divides agreements into two grou ps, social domestic agreements and business agreements. 4. Form both(prenominal) contracts are indeed in writing but the majority are created much more informally every orally or implied from conduct. Generally, the law does not require complex formalities to be observed to form a contract. Some types of contracts which are exceptions to this rule.They are contracts which must be in the form of a deed, contracts which must be in writing and contracts and contracts which must be evidenced in writing. 5. Capacity Capacity is in like manner one of the requirements for a contract to be valid. The parties must be legally opened of entering into a contract. There are, however, some groups of people who are in need of the laws protection either because of their age or inability to appreciate their own actions. The groups which are covered bu special rules are those under the age of 18 (minors), mental patients and drunks. . Genuineness of consent The near basic requirement of a contra ct is the presence of an agreement. It must pack been entered into voluntarily and intricate a genuine meeting of minds. The agreement may be invalidated by a number of factors which are mistake, misrepresentation, durance and undue influence. 7. Legality The principle of freedom of contract is subject to a basic rule that the courts will not uphold an agreement which is illegal or contrary to public policy. Where the contract involves some kind of moral wrongdoing, it will be illegal.If, however, the conduct is neither immoral nor blameworthy, but apparently undesirable, the contract will be void. A court may object to an agreement either because of a rule of common law or because it is contrary to statute. In a nut shell, all the requirements state supra must be met for a contract to exist between Andrew and Ben. head teacher 2 In the scale study given, Andrews letter on the 21st February is considered as an offer in the law of contract. An offer is an building of willingn ess to contract made with the intention that it shall become binding on the offeror as soon as it is accepted by the offeree.It is all the way stated that its an offer when Andrew wrote a letter to Ben, owner of the retail shop go to sell him 100 bags of potatoes at 10 per bag. This is as well known as a bilateral contract in the law of contract. An example to represent this case (Carlil v Carbolic Smoke Ball). Bens reception on the twenty-third February is acceptance. He replied accepting Andrews offer but adding that if he did not hear from Andrew, he would assume that the price overwhelmd delivery to his (Bens) shop. On the twenty-fourth February, the acceptance to be considered as an counter-offer introducing the new requirements.If in his react to an offer, the offeree introduces a new term or varies the ground of the offer, then that reply cannot amount to an acceptance. Instead, the reply is treated as a counter offer, which the original offeror is free to accept or r eject. A counter-offer also amounts to a rejection of the original offer which cannot then be subsequently accepted. This can be seen in the case of ( Hyde v Wrench). Based on the case given, on the 24th February, ahead Bens letter arrived. Andrew heard a rumour that the price of potatoes was about to slump dramatically. Andrew immediately sent a fax to Ben, stating that the price includes delivery.This is merely counter offering the previous offer. Therefore, when Ben also heard the news about the slump in the price of potatoes where upon he sent Andrew a text message stating decline your offer of pots clearly shows that he varies the basis of the offer and it cannot amount to an acceptance. A counter-offer should be high-minded from a mere request for information. If A makes an offer on his tired document and B accepts on a document containing his conflicting threadbare terms, a contract will be made on Bs terms if A acts upon Bs communication, example by delivering goods.Thi s situation is known as the bout of the forms. An example to this is the case of (Stevenson v Mc Lean). Wrapping up the case, in the case of Andrew v Ben, it is undoubtedly seen that counter-offer takes luff and hence Bens is suitable to reject the delivery of Andrews pricy potatoes. disbelief 3 On 24 February before 10 a. m, Andrew heard rumors about the price bury in potatoes market. He immediately get out a fax to Ben stating that price include delivery. This shows that offeror had sent a fax to offeree bonny to provide additional service without extra charges.As Ben already accept the offer on 23 February, and the offer is now ? 10 per bag of potatoes including delivery tippytoe with extra service provide. The contract is up to now accepted by Ben and just added additional services which show in fax price include delivery as additional contract terms suffer that Andrew will provide ? 10 per bag of potatoes including delivery fee. Even if offeree does not want to accep t additional terms from offerer, offeree is still in a previous contract position which is accepting the contract. On 24 February after(prenominal)(prenominal) 10 a. m, Ben had receive a fax from Andrew which stated that price include delivery.Ben accepts the offer of Andrew for ? 10 per bag of potatoes includes delivery, and so Ben posted a letter to confirm his acceptance of Andrew terms. When a letter is posted, the acceptance of the contract is consider accepted. According to postal Acceptance come ups, formerly the letter is posted, it is consider as acceptance no matter it reached the offeror or not at that time (Duhaime, n. d. ). There is a similar case of Postal Acceptance Rule Household dismissal policy Co. V. Grant. During 30 family 1874, Grant had applied for 100 shares from Household Fire and Carriage hap Insurance Company Ltd.The company had accepted Grant offer and dish out him 100 shares on 20 October 1874 which using letter posted the balk to Grant address. H owever, the letter does not reach Grant address which gist Grant did not receive the acceptance letter from Household Fire Insurance Company. Grant though that his offer for 100 shares has not been approved. On March 1877, Grant have a letter demanding payment upon the call of 100 shares. The jury also found that the letter of Grant parcelling had been posted on 20 October 1874. For the above case Fire Insurance Co. V.Grant, the court cogitate that there was a valid contract purse on the Postal Acceptance Rule. Because the rule for post is the acceptance is rough-and-ready even if the letter did not arrive to the parties. The Postal Acceptance Rule is design to prevent anyone try to opt out of the rule, once soulfulness posted acceptance, the contract had came into effect. This rule can apply to Ben and Andrew case, which Ben posted a letter which confirms the acceptance of the contract terms between Andrew and Ben. Which means once the offeree posted the acceptance letter, t he contract is consider bound to the offerer.However, over the lunch time, Ben also heard news about the slump price in potatoes market. Ben immediately sends a text message stating that decline your offer of pots to Andrew. This means that after Ben knew about the slump price in potatoes, he send text message to Andrew to reject his offer. This text message is come second after the letter posted. According to Postal Acceptance Rule the counter acceptance or rejection will only be alternate if the parties respect it from their contract, required receive by offeror in order to be treat as acceptance (Corrigan, 1997).There is a similar case of replace acceptance Entores V. Miles Far eastern pot. Entores and Miles Far easterly Corp are communicated trade agreements through Telex machine. Entores was base in capital of the United Kingdom and send telex for leveraging of copper from company Miles Far East Corp base in Amsterdam. Entores found out that Miles Far East Corp was not f ulfilled the contract and sue the Corp for damages. Entores sue Miles Far East Corp for breach of contract in slope law jurisdiction. It could prove that the contract was formed within the jurisdiction.The court concluded that, when offer is made by telex or text message, the offeror must receive the acceptance. If the offeror is receiving the telex, it is consider contract is bound. This same goes to the letter of Ben post, even if the letter is not reached Andrew, the contract of acceptance is considered to be bound. The text message send by Ben afterward is decide by Andrew either to be accept or to be reject the rejection from Ben. The contract of Ben and Andrew is still ? 10 per bag of potatoes includes delivery is already accepted by Ben.According to Ben and Andrew case, when the price of potatoes drop to ? 7 per bag, Andrew immediately counter offer to Ben include delivery, Ben accept Andrew terms before knowing the price drop in Potatoes. subsequently that, Ben realise the price drop of potatoes, he reject the offer and respond to accept delivery of Andrew pricey potatoes. If offeree refuses to accept the delivery of offerer pricey potatoes, offeree will be breaching the contract terms and fall under offer acceptance law case. As the contract of Ben and Andrew is ? 10 per bag of potatoes include delivery which is accepted by Ben.The contract is still active between Ben and Andrew, once the contract is bind between offeror and offeree is not able to terminate. The following rejection by text message from Ben to Andrew is considered as another term of new offer contract which needed Andrew to be accepting. However, Andrew didnt reply the acceptance of Ben rejection. This means that, Ben have to stick to the first terms of ? 10 per bag of potatoes include delivery. If the case is bring to the court, mostly Andrew will win the case as according to the contract terms, Ben already accept the offer of ? 0 per bag of potatoes include delivery. The offeree (Ben) had accepted the offer at first and the counter rejection of offeree will not be taken in place if the offeror (Andrew) did not want to accept the rejection from offeree. If the offeror (Andrew) did not accept the counter rejection, it consider as Ben accept the offer and need to purchase ? 10 per bag of potatoes include delivery from Andrew for 100 bags. If Ben is still refuse to accept the Andrew offer, Ben will need to pay compensation to Andrew for breach of contract. Question 4On 21st of February, Andrew is salesman at Wholesome Vegetables Ltd, who offered to sell 100 bags of potatoes at ? 10 to Ben, owner of retail shop. On 23rd of February, Ben replied accepting Andrews offer but adding the delivery to his (Bens) shop into the price if he did not hear from Andrew. It means the price of potatoes is ? 10 per bag included delivery. On 24th of February, Andrew heard that the price of potatoes is going to fall down dramatically and later Ben is received a fax from Andrew sta ted that price include delivery. Before 10 a. m, Ben received Andrews fax and he accepted the offer of Andrew for ? 0 per bag of potatoes included delivery. After Ben sent a fax to Andrew about his acceptance, both of them already formed a contract of law. The issue appeared in this case when Ben knew about a slump in the price of potatoes over lunch, he sent Andrew a text message decline your offer of pots and he was too late to face-lift his acceptance of Andrews term because they already made a contract after 10 a. m on 24th of February. The reason Ben wanted to revoke the contract because the price of potatoes in contract that Ben have to pay for Andrew is more expensive than after a slump in the price.Revocation is effective when it is communicated to the offeree before he or she has accepted the offer (Will and Weinstein, 2010) Revocation is one of result of contract that has similar situation in this case Byrne and Leon van Tienhoven 1880. On 1st of October, Leon Van Tienho ven were defendants located in Cardiff, they sent a letter from their office to Byrne Co in New York offering to sell the plaintiffs 1,000 boxes of tin plates. On eleventh of October, the plaintiffs immediately telegraphed acceptance of offer after they received the letter and it is confirmed in a letter posted on 15th of October.Meanwhile, on 8th of October, the defendants had written a letter to revoke their offer, and it came to plaintiffs on 20th of October. A binding contract was held, because revocation was only influenced by communication, however, the acceptance was telegraphed took effect as soon as it was sent. In this case, it took 9 sidereal days from 11th to 20th of October for plaintiffs to received revocation. On 11th of October, the contract had been made already at that time the second letter form defendants reached the plaintiffs.The contract had been existed in this case when the claimants accepted the defendants offer at that date. Lindley J, who was giving jud gment for plaintiffs, stated that the extreme injustice and inconvenience which other conclusion would produce (Cheshire, Fifoot FurmstonsLaw of contract, 1996). This issue happened because the letter of revocation had no communication to the offeree. According to Introduction to the law of contract, the offer could be revoked by offeror without telling offeree, and the information may be conveyed by a reliable third party.In the case of business, a letter from offeror to offereeon a normal working day should be treated as a communication even if unopened (Cheshirem, FifootFurmstons Law of contract, 1996). Held In this feature case, Lindle J had no authority in fact given by the plaintiffs to defendants to inform a withdrawal of their offer by posting the letter, the fact is the letter of the 8th of October is be treated as communicated to the plaintiffs on that day or any day before the 20th. ConclusionIn conclusion, Ben has a legal binding contract with Andrew. According to the case of Andrew v Ben, it is noticeably seen that the whole encased is based on the law of contract. A contract may be defined as a legally binding agreement or, in the words of Sir Frederick PollockA promise or set of promises which the law will enforce. The agreement will create rights and obligations that may be enforced in the courts. It is classified as a contract is deed and it is known as a bilateral contract.This imply where a promise of one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods. The elements involved in the contract are agreement, consideration, intention to create legal semblance and consent. A contract which possesses all these requirements is said to be valid. The absence of an essential element will render the contract void, voidable or unenforceable.The terms of the contra ct is Ben accepting 100 bags of potatoes for ? 10 per bag of potatoes including delivery fee from Andrew. If let say offerer (Andrew) accept the rejection of offeree (Ben) text message, the acceptance contract will be terminated. However, if offerer (Andrew) still deciding to supply the tune of potatoes to offeree (Ben), Ben would have to purchase the 100 bags of potatoes with ? 10 per bag of potatoes including delivery fee. On the other hand, if offeree (Ben) refuses to accept the 100 bags of potatoes with ? 0 per bag including delivery, offerer (Andrew) can sue offeree (Ben) for breach of contract. The probability of claimant (Andrew) could win the case is high as defendant (Ben) has proven accept the acceptance contract terms. In our opinion, this case study is related to offer and acceptance rules. The oferee (Ben) should accept the 100 bags of potatoes for ? 10 per bag of potatoes including delivery fee as offerer (Andrew) has an evidence of acceptance contract binding between Ben and Andrew.