Negotiable Documents

In: Business and Management

Submitted By HomeBodyGirl
Words 2489
Pages 10
Issue 1: Did Tom offered a car to be sold in the advertisement?

Tom, a car dealer placed an advertisement in a weekly motor sports magazine offering to sell a triumph (Tr6)for $10,000.

RULE OF LAW: Rule of law for an Offer - is a statement of willingness of a contract on specified terms if accepted, it shall become a binding contract.

Argument/Counter Argument: firstly, the advertisement was public to the eyes of citizens and it will attract interested outsiders, because of an invitation to treat. Whereas, Chris acceptance to the advertisement leads to a binding contract with the offeror, Tom. After he saw advertisement he immediately posted an acceptance letter with $8000 cash, alongside his office fax number. The offer was accepted when chris sent the letter to tom accepting the offer. Both parties communicated by fax, when the letter itself was sent to the offeror in which Tom read it and accepting the check.

-According to the case of Carlill vs Carbolic Smokeball, the defendant manufactured a "Smokeball" to prevent flu and whoever used it over a specified period of time, each will receive $100. Carlill saw the advertisement, which states an invitation to treat. She used the Smokeball under her specified terms and still caught the flu. She went to collect her $100 benefit but the company refuses to pay her. When the claim was made they said there was no contract. It was held that an offer made to the world at larg, can become a contract with those who fulfilled the conditions. Based on the conditions, Chris performed within the conditions of using the smokeball. Hence, commerce performance was acted upon. The company on the other hand says, on her behalf, that she did not communicated with them, of accepting their offer. Furthermore on the basis, it did formed a unilateral contract offering to the public at large. However, they already entered into a…...

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