Contract and Agency Law: Overview and Analysis Case Study

Generally, an commercial whether or not digital or in any other case is taken into account simply as an invite to deal with and never as a suggestion per se. This is as a result of each provider has restricted provide due to financial, monetary, or in some cases pure constraints. In authorized phrases, an invite to barter is simply an intention of 1 celebration to make a suggestion and isn’t a suggestion by itself. Consequently, the advert made by Hanes Audio can’t be taken to be a suggestion per se. As outlined by the Electronic Transactions Act chapter 88 Sec 14, any digital communication that isn’t made to a person or particular group of individuals must be thought of as an invite to make a suggestion until said in any other case (Tabalujan & Toit-Low, 2009). This consists of proposals that make use of interactive purposes for the location of orders. As it was held in Patridge v Crittenden (1968), commercial is an invite to deal with or negotiate and never a suggestion.

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However, when an order is made following an internet commercial and the provider accepts the order and goes forward to ship items, then a binding contract comes into existence. The Electronic Transactions Act chapter 88 Sec 11(2) clearly explains that when digital communication is used within the formation of a contract then the contract can’t be denied validity simply because digital communication was used (Tabalujan & Toit-Low, 2009). In this regard, there was a contract between Clara and Hanes Audio the second Hanes Audio accepted to ship the telephone as marketed. It is vital to additionally word that Clara paid for the telephone with out giving situations.

In the case of Carlill v Carbolic Smoke Ball Company (1893), the courtroom of enchantment held that the advert made had all the necessities of a suggestion and was, subsequently, a suggestion in itself. On the identical word, within the case of Perry v, Suffield’s Ltd the courtroom held that there was an abiding contract although different essential factors weren’t expressly mentioned. In the Digilandmall case (2004), the courtroom held that the automated acceptance of the orders created a binding contract (O’sullivan & Hillard, 2012). In this case, Hanes Audio communicated its acceptance of the contract by delivering the telephone as was ordered by Clara. In the advert that was positioned by Hanes, there was nothing left for negotiation. Therefore, following the ruling on the case of Lefkowitz v Great Minneapolis Surplus Store (1957), Hanes’s commercial may be taken to be a suggestion (Phang & Yihan, 2012).

For the second half, Clara had the chance and time to learn all of the situations that got as regards the commercial. Unfortunately, she was reluctant and ignorant to learn them. Consequently, she can’t use the excuse that she didn’t learn the phrases of the contract to exonerate herself from negligence (Chitty, 2012). Given that Hanes Audio had expressly communicated the phrases and situations of the contract, they are often exempted from blame. Consequently, Hanes had caught to their finish of the discount by changing the telephone that was requested with one other one and offered change on the identical (Chitty, 2012). Clara will, subsequently, be underneath obligation to simply accept the UL210 and the voucher. Hanes Audio is just not underneath any obligation to simply accept again the UL210 telephone and was doing Clara a favor by giving her a two weeks grace interval.


O’Sullivan, J. & Hilliard, J. (2012). The Law of Contract. London: Oxford University Press.

Chitty, J. (2012). Chitty on Contracts. London: Sweet & Maxwell.

Phang, A. B. & Yihan, G. (2012). Contract Law in Singapore. Alphen aan den Rijn: Kluwer Law International.

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Tabalujan, B. S. & Toit-Low, V. D. (2009). Singapore Business Law. Singapore: Business Law Asia.

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