Case Study Of Dorothy's Contract For The Sale Of Gum
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- The main issue in this case is whether Dorothy has a binding contract for the sale of Gum Leaves with either/neither or both of Brian and Lionel.
- An offer is described as a proposal by offeror to enter into an agreement with offeree that concludes the necessary terms . The offer can be made in different ways such as writing and oral communication A counter offer is a new offer with different terms made in response to a prior offer by the other party. Making a counter offer automatically rejects and destroys the original offer . Acceptance cannot be inferred from the silence or inaction of the offeree . Besides, acceptance communicated in person or by telephone takes place immediately .
- Based…show more content… - Rule:
- Consideration must be promised or provided before the agreement is finally made. An act or promise happened after the agreement is called past consideration and is invalid consideration .
- Past consideration: Based on this case, we can see that when Emily accepts to purchase the young dog for $3000 with two equal instalments and she pays first instalment for Rachael to carry the dog away, the purchasing contract is formed. From that, any promises happening are unenforceable and considered as past consideration. Therefore, when Rachael promises Emily that Fang is not bad-tempered, the promise is invalid bacause this happens after the contract is formed. Hence, Rachael does not have to compensate Emily for her hurting hand.
- Based on the preceding analysis, Emily does not receive any compensation from Rachael. However, to avoid the same case, Emily should receive any promises from the others before the contract is formed because she can be compensated and protected by contract laws if something happens. More carefully, she ought to make sure the promise be a term of the contract by getting everything in