Law Contract Case Study

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Case 1 Issue This problem addresses the issue of agreement, whether there is a valid contract or the offer may be terminated. In order to the contract being valid and enforceable, there is a need for the conduct of an offer and an acceptance. Rule For an offer to be valid, it contains some rules, including lapse of time. When an offer is made, it does not last forever. An offer stated to open for a specific period, lapse if the there is no acceptance within that time. If there is no set time for acceptance is stipulated in the offer, the implication of lapse will be exercised after a reasonable time, depending on the facts and circumstances in each case. (see Ballas v Theophilos (No2) (1957) 98 CLR 193; [1957] HAC 90). If the acceptance…show more content…
Any change from the term of the offer, even slightly, may not constitute a valid acceptance and therefore, no valid contract does exist. Moreover, an attempted acceptance that is not as same as the original offer is referred to a counter-offer. A counter-offer has the effect of destroying the original offer and is known as a new offer. With a counter-offer, the attempted acceptance is invalid and there is no contract. (see Turner Kempson & Co Pty Ltd v Camm). Without a valid contract, breach of contract is not committed. Application In this case, the attempted acceptance by the offeree is not a valid acceptance, but is known as a counter-offer. The terms are used to describe the fruit as “first class quantity” in the offer letter is not identical to the terms used by offeree, as “finest fruit”. Moreover, the attempted acceptance letter making by offeree stipulates delivery terms that is not mentioned in the offer letter and does not re-specify the payment method “paid in cash in 7 days”, which is described in the offer letter. The differences between the offer’s letter and the attempted acceptance letter make the offeree’s acceptance invalid because it amounts to a counter-offer. Conclusion Because no valid contract exists, there is no breach of contract committed; Cammy Pty Ltd will not succeed in their action against TT Co. Case 3 Issue This problem addressed the issue of breach of contract, when breach of contract occurs. The question also states out the issue
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