CT0266577 CL.docx - (i Contract Formation There are five elements to forming a legal contract They are as follows Firstly capacity secondly an offer

CT0266577 CL.docx - (i Contract Formation There are five...

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(i)Contract Formation.There are five elements to forming a legal contract. They are as follows: Firstly,capacity, secondly an offer, thirdly an acceptance supported by consideration, and lastbut not least, intention to form legal relations. On 1stNovember 2015, Alan posted on his Facebook, indicating that he was sellinghis textbook. This could be an invitation to treat, thus inviting others to make offers tobuy his textbook, and he holds the capability to accept or reject their offer, whichrelates to Pharmaceutical Society of Great Britain v Boots Cash Chemical (1952), apharmacy was held no offence for putting drugs on sale without a pharmacist’spresence as they introduced a new method of the customers helping themselves to themedicines on the shelves. However, when checking out and making payment, therewas a shop assistant who would accept or reject the offer made by the customer. As for Alan’s post, it could also be an offer as it is measurable and unambiguous. Thismakes Alan the offeror and the other parties (Bernard, Charleen and Damien) theofferee. There was a legal contract formed between Alan and Damien but not withBernard or Charleen. This will be further discuss in (ii) and (iii) respectively. The contract between Alan and Damien was formed when Damien messaged Alanthat he was keen in buying his Commercial Law materials on 2ndNovember 2015 andwould pay the money, $200 on 4thNovember 2015. It was assumed that Damien haslegal capacity, being at least 18 year old and has sufficient mental capacity. (ii)Bernard v. AlanFor Bernard, once he saw Alan’s Facebook post on 2ndNovember 2015 hecommented on Alan’s Facebook wall right away to show his interest in purchasing thetextbook, but he made a counter offer of $150/-. In a similar case Hyde v Wrench (1840), the defendant put his farm up for sale for1000 English pounds. At first, the plaintiff told the defendant that he wanted to payonly 950 English pounds. Following that, the defendant decided to reject his counteroffer. However, after a few days, the plaintiff sought to pay the full asking price of1000 English pounds but the defendant refused to sell the farm to the plaintiff. Withthis, the plaintiff brought things to court. It was held that there was no contractformed as the plaintiff had destroyed the defendant’s offer by counter offering at alower price. On 3rdNovember, Alan replied Bernard’s post on his Facebook wall saying that he isonly selling at $200 and there is an offer already. After much consideration, Bernarddecided to purchase Alan’s materials at the price he posted but due to some personalreasons, he could not meet Alan in time so he put the $200 in an envelope and mailedit to Alan on the morning of 4thNovember 2015.
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According to postal rule, the time of acceptance between Bernard and Alan will bethe time when Bernard mailed the cash, which was mentioned in case law Adams vLindsell (1818)where the defendant wrote to the plaintiffs, wool manufacturers, on2nd
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