Contract Essay Example | Topics and Well Written Essays - 1250 words

Contract - Essay Example Generally, advertisements are considered to be invitations for deals rather than contracts (Miller and Jentz 216). However, advertisements can be considered as offers in certain cases. An advertisement qualifies to be an offer when it is definite in its terms and the publication shows intent of the advertiser to enter into a binding contract (Miller and Jentz 216). Effective communication of an offer to the offeree confers to him the power to transform an offer into a contract through acceptance (Miller and Jentz 216). However, the action of either the offerer or the offeree can terminate an offer. The termination can be done through revocation, rejection or by giving a counteroffer and in some case through operating law (Miller and Jentz 216). Seven Inch Android Tablets In the case of The Tech Revolution, the company advertised Seven Inch Android Tablets selling at ?229. The tablets as claimed in the advertisement are available in all colours. Alan made a written order for a tablet in silver. TTR wrote back to Alan informing him that the company only had green or pink Tablets. Afterwards, TTR found a silver Tablet and wrote back to Alan informing him that they had accepted his offer. However, Alan is no longer interested in the Tablet. The main question that arises out of this scenario is: does a valid contract exist between Alan and TTR? Reviewing the scenario, TTR’s advisement is an invitation made to the public to buy its Tablets. Alan acts the company’s invitation by sending a written order to TTR. Unfortunately, TTR does not accept Alan’s order because they have no silver Tablets in their stock consequently rejecting the offer. As it emerges, TTR has no legal case against Alan. By writing back to Alan and confirming that they could not supply him with silver Tablet, the company revoked the offer. Moreover, the company’s advertisement was made to the general public and does not constitute a binding contract with anyone willing t o buy the Tablets. In the case of Pharmaceutical Society of Great Britain v Boot Cash Chemists (1953), it was held that display of goods did not amount to an offer (Stone, Devenney and Cunnington 36). In Carlill v Carbolic Smoke Ball Co, it was held that Mrs. Carlill, the plaintiff, entitled to receive the reward mentioned in the advertisement. The unanimous decision was based on the fact that the advert was definite in its terms and unilateral. However, TTR’s advertisement of the â€Å"Seven Inch Android Tablets† does do provide definite terms besides price. Therefore, the advert is a mere invitation for a deal rather than a binding contract. Soniz Netbooks TTR advertised Soniz Netbook as a special offer going for ?100 for all orders received by 15th November. Betty wrote and posted an acceptance letter for the Soniz Netbook and posted the letter on 14th November. However, the letter arrived on 16th November, prompting TTR to consider it late following their 15th Nove mber deadline. Clearly, the advertisement of Soniz Netbooks qualifies to be an offer because it contains definite terms. The main issue is to determine whether TTR is legally liable Betty. Can Betty file a valid legal case against TTR? According to Mailbox Rule under common law, acceptance becomes effective on dispatch and the date on which the offerer receives the letter is immaterial provided that the letter is properly addressed (Tepper 61). In the case, Betty mailed her acceptance letter on 24th