Contract Agreement By The Law Of A Stamp Shop Window

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Contract – agreement by the law between two or more people to obtain from doing some act or acts to create legal relation. Contract has 4 elements: offer, acceptance, consideration and intention to legal relations. Without these 4 elements there is no contract.
TASK 1
Bob – the owner of a stamp shop in Muncaster High Street – placed and advertisement column of the Muncaster Evening Gazette. He is selling ‘Utopian penny red stamp’, one only for £750 or nearest offered price.
Legally by law an advertisement in the magazine is not considered as an offer. Seeing that people cannot accept an advertisement to make a legally binding contract, we considered this as an invitation to treat. Invitation to treat is a declaration for customers to enter negotiations or to submit an offer (goods displayed in the shop window, an advertisements, auctions etc.). It cannot be accepted and cannot form a binding contract; we saw this in cases such as Fisher V Bell (1961) and Partridge V Crittenden (1968). An invitation to treat invites one party to make an offer to other party to form a binding contract. On the other hand, an invitation to treat might be an offer if there is a promise in the advertisement (Carlil V Carbolic smokeball CO 1893). Difference between offer and invitation to treat is that when one party makes an offer to other party and the other party accepts – there is a legally binding contract. You can’t accept an invitation to treat. According to advertisement in the magazine

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