Essay on Assignment 2 Four Step Process

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Assignment Cover Sheet When submitting your assignment it must be accompanied by this Assignment Cover Sheet. Please make sure that you complete all of the details correctly.  Provide ALL details requested on this form.  Use one form for each assignment. Given name Hui Leen Surname Lau Student number 17620987 Email Unit name Business Law 100 Unit code 11011 Assignment title Assignment Two Date submitted 5 MAY 2014 Student‟s comment to tutor Mr. Ariffin is a good lecturer. He assists us when we have any problem. Marker’s comments Recorded mark Marker Comments Question 1: Using the four step process, discuss the element of agreement required for the formation of a legally binding contract…show more content…
In this case, Carbolic Smoke Ball Company has published an advertisement in London newspaper to promote the use of the Carbolic Smoke Ball to prevent influenza. In the advertisement, the company offered £ 100 to the people, who bought the smoke balls and used them according the instructions given, but still contracted influenza. Mrs Carlill purchased the smoke balls after she read the advertisement. She used them according the directions, but nevertheless caught influenza. She claimed for the £ 100 which promised by the company but they refused to pay her. The court had to decide whether an offer that made to the world at large is valid to accept by an individual who read the advertisement or not. The court judged that the offer made to the whole world at large is the acceptance of the offer by everyone who knew about it. Acceptance is an agreement on the terms of an offer. It must be made when the offer is still present. Terms of acceptance must be unanimous with the offer and cannot be conditional. It can only come from the person to whom the offer was made. Apart from that, acceptance must be communicated with the offeror and no certain form is necessary (Duperouzel 2014). According to the general rule of acceptance, the acceptance is effective immediately when received. Once the acceptance is communicated to the offeror, the acceptance is effective and the agreement is reached. The case of Entores Ltd v
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