Contract Act 1950 Essay

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Contract is an agreement enforceable by law under S.2(h) of Contarcts Act 1950 .An offer is referred as proposal which is made when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence are defined under S.2(a) of Contracts Act 1950. S.4(1) of the Contract Act 1950 provides the communication of proposal is complete when it comes to the knowledge of the offeree. What the offeree has done should not be a coincidence of what was offered by the offeror. In the case R v. Clarke [1927] 40 CLR 227 , the Western Australian Government advertised a reward for information leading to arrest and conviction of the persons responsible for the murders …show more content…

It is important to differentiate between offer and invitation to treat based on the intention of parties. For instance, the intention of whether the maker of the statement intend to bound by the acceptance of his terms of the proposal without further negotiation, if yes then it can be said he has made the proposal. In the other side, we need to see whether he intend his statement to be the part to continue the negotiation process, if yes then he has made the invitation to threat. One of the circumstance of ITT is an advertisement which attracts the other party to make an offer based on the information inserted in newspaper or magazine. In the case of Partridge v. Crittenden [1986] 2 A11 ER 421, D inserted an advertisement in a magazine for caged bird enthusiasts stating that he had finches for sale at $25each.D was prosecuted and convicted as he makes its illegal to offer finches for sale .D appealed. On appeal, the court held that he had been convicted wrongly as that the advertisement is not an offer but merely is an …show more content…

Acceptance is defined under S.2(a) of Contract Act 1950cthat the acceptor signifies his assent to the proposal made by proposer, it is said to be accepted. Acceptance must be absolute and unqualified under S.7(a) of Contract Act 1950.In general rule, acceptance must be communicated to the proposer but the position in unilateral contract is different because one party promise to give something to another party if the another party will do something. S.8 of CA 1950 provide acceptance was done by performing some condition prescribes in the offer. In the case of Carlill v. Carbolic Smoke Ball Co[1893] 1 QB 256,D had inserted an advertisement in newspaper by laid down some conditions which whoever brought the smoke ball and use 3 times daily and caught influenza will be rewarded $100 and D had inserted $100 in Alliance Bank .The court held that there is an ITT made by D which fall under unilateral contract.Therefore, P is entitled for claim back the sum of

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