Contract Law Advice

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Legal Issue:

Is Jehni able to legally force Jek to sell the charger at $25.

Relevant Rules of Law:

1. Contract is an agreement giving rise to obligations which are enforced or recognised at law. What the parties agree on must be clear and unambiguous. In order for a contract to be legally binding, four key elements must be present which are namely, offer, acceptance, consideration and intention to create legal relations. 2. Offer is an expression made by one party (“Offeror”) to another party (“Offeree”) communicating the offeror’s willingness to perform a promise. Offers can be made in writing, orally or by conduct. In order to determine if there is an offer, it depends whether the offeror intends to be bound by his actions. 3. However, in some cases, what seems to be an offer may only be construed as an invitation to treat. According to the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd (1952), a display of goods and prices in a shop is usually considered to be an invitation to treat and not an offer. In such cases, the offer is made when a customer selects the item he wants and bring it to the cashier to pay for it. This general principle has been affirmed by the Singapore High Court in Chwee Kin Keong & Others v Pte Ltd (2004). 4. In some instances, communication may not constitute an offer but a mere request or provision of information. According to case of Harvey v Facey (1893), there was no contract because the second telegraph merely amounted to a provision of information and not an offer. 5. Besides offer, acceptance is required for a contract to be legally enforceable. Acceptance refers to the unconditional expression of assent to the terms of the offer.

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Application of Law:

According to the case, Jek’s display of his goods for sale is not to be construed as an offer. The law states that, a seller will only have limited stock for the goods available for sale. If the display of goods is to be construed as an offer, the seller will have to sell more than what he has in stock. Therefore, the seller does not have intention to be bound by the display of his or her goods for sale. Thus, Jek’s display of goods for sale does not constitutes an offer but an invitation for others to commence negotiations. This is further accentuated in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd (1952) where the display of goods only constituted an invitation to treat. Furthermore, Jehni’s asking of the price of the charger is a mere request for information from Jek and Jek’s response that it cost $25 amounted to only a provision of information to Jehni.

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