Tutorial Topic 3 Week 4 Offer and acceptance.docx -...

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Tutorial Topic 3 Offer and Acceptance Reading: Parker and Box, Chapters 6 and 7 QUESTION 1 In the following scenario you need to ascertain whether a contract was formed between the parties. In order to do so, you need to analyse the events that occurred by selecting words from the list below that best describe the events in each of the 12 paragraphs of the scenario: Ivan receives a catalogue in his letter box from Klein Electronics store advertising mobile telephones and other electronic equipment. The catalogue shows product prices. – Rule or Principle - Invitation to treat Reason – Patridge V Crittenden He visits the store and selects a Prima Z1 laptop from the shelf and approaches the counter. It has a marked price of $600. Still the invitation to treat The display of the laptop for $600 is only an invitation to treat. See Pharmaceutical Sociaty V Boots. Customer makes the offer at counter. He tells the shop assistant he will definitely buy it provided he receives a 10% discount on the marked price. These are the terms of his offer. Its not a counter offer. The shop assistant refuses suggesting only a 5% discount. It’s a counter offer and shop counter-offered 5% discount. New offer only not still in contract. See Hyde V Wrench Ivan does not think that is enough and says he will continue to browse, looking at other products on the shelves. Rejection of the offer by Ivan so there is no agreement or contract yet. He notices a Bandung Note14 laptop on the shelf and takes it to the counter. Display of note 14 laptop is an invitation to treat. Ivan makes the offer at counter. The sales assistant advises him that the item is not for sale and should have been withdrawn from stock as there had been problems with its battery causing the unit to catch fire. Rejection of offer by the store and there is no agreement yet. The sales assistant advises him that a new line- the Bandung Note 15- is available with a few in stock at the back of the store. He is told Note 15 does not have the technical problems of the Note 14 and has a bigger memory and processor and costs only $550. Supply of information is not an offer. See Harvey V Facey Impressed by this, Ivan asks whether it comes with a 12 month warranty and the shop assistant confirms this. Its an supply of information. Ivan requested for information which is not an offer yet. See Stevenson Jaques V McClean. Shop supplied information (not an offer) Ivan agrees immediately to buy it and the shop assistant responds that Ivan has made a good choice, returning a few minutes later with a unit. In contract law, Customer makes an offer. Ivan communicated his offer to buy. 1 Offer, Acceptance, Invitation to treat, Rejection of offer, Counter-offer, Request for information, Supply of information
However, on seeing it, Ivan is not impressed with the colour or keyboard configuration and declines to buy it.

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