IntroductionThis is a case study between Alan, Bernard, Alan’s sister, Charleen and Damien. This case is about Alan wanted to sell his used textbook “Introduction to Business Law in Singapore” and exercise book with written notes so he posted the selling price and information on Facebook. Bernard, Charleen and Damien are keen in buying the textbook and exercise book. Question 1 There are four essential necessary in order to make a legal contract. The four necessary are legal capacity, agreement, consideration and intention to enter into legal relations. Legal capacity meaning not everyone can make a contract as the lawhave the needs to protect those aged under 18 years old, make a contract after drinking alcohol and having metal illness. This is because they are incapable of understanding the contract. The purpose of agreement is to arise from an offer and an acceptance whereby example for Harvey v Facey (1893) case, Plaintiffs sent a telegram to the defendant and ask if can lower the price of product and defendant replied $900 is the lowest price and they agree to buy. However, Privy Council said that telegram was not an offer but it indicates the lowest price and decided to sell butthe second reply from plaintiffs cannot be acceptance (LawTeacher, 1893). An exchange of benefits or valued items by the party is considerations as for example a worker is paid as the work carried out by the worker. Intention to enter into legal relations if often stated by the business as both parties must have the intention to form a legal contract.Firstly, to form a contract there are certain rules that needed to be follow. As mention above, legal capacity meaning not everyone are able to make a contract. People who aged under 18, which called minors are not able to make a contract unless the contract benefits the minors or is a necessity thus the contract. Secondly, people who make a contract under having alcohol inside their body or having mental illness the contract will not be valid. In this case study, there are not form of contract for Bernard, Charleen and Damien.This is because Alan did not accpect the offer from Benard as he replied to Benard’s Facebook comment that there is already an offer for the textbook and notes. As for Damien, Alan does not reply to his message but Damien just mailed out the $200 to Alan’s home address. Lastly, when Charleen wasmaking an offer for purchasing the textbook and notes, Alan wasn’t paying attention to her and just nodded his head another reason is because Charleen is still a minor. Question 2 There is no legitimate contract made between Alan and Bernard. This is because Bernard required a counter offer. Counter offer meaning an offeree makes a differentrequires from offeror when this happens offeree who is now making the offer. In this situation, Alan set the price of $200 for textbook and exercise book but Bernard requested a lower price of $150 however Alan replied to Bernard that there is already
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- Fall '16
- Law, Arbitration, sue Alan