A contract is an agreement made between two or more parties with an intention of certain legal right and obligations which the law will enforce and it is made up by agreement, consideration and intention to create legal relations.
Advertisement is an invitation to treat and mere supply of information is not an offer. Catalogues are invitations to treat even when the word "offer" or "offers" is used in the advertisement. Agreement is made up by offer and acceptance, it has to be a valid offer and acceptance. Television on display is also an invitation to treat and not an offer, According to the case: Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd. When a widescreen …show more content…
According to the case: Partridge vs Crittenden, when Emma see this advertisement of the television screen, this advertisement is an invitation to treat not an offer, therefore there is no offer made by Emma or Tony, then Emma said that:" Can you make it cheaper? How about $1,500?" this is an offer made by Emma, but Tony rejected it:" Sorry, I am unable to sell at that price, I cannot make much profit selling it at $1,500." Afterwards, Emma made another offer that she is willing to buy this widescreen television at $1,800.
Counter-offer is a rejection of the original offer and a now offer was made, an offer once rejected cannot be revived by subsequent acceptance According to the case: Hyde vs Wrench. Tony said that:" My best prices is $1900." He gave the alternative proposition to the offer. Counter-offer cancel the old offer which was made by offeror, but Tony think $1800 is too low then he made another counter-offer about sale this widescreen television by $1900. Therefore, the old offer which is made by Emma is rejected then there is a new counter-offer made by Tony that is sale this widescreen television by $1900 …show more content…
According to the case: R vs Clarke. Tony said to Emma:" $1,900 is the lowest price we can sell this TV. I have limited stock and this offer will end at 5pm today." Emma said she need to think about this price. Although the next day, Emma went back to the shop and speaks to Tony:" I am happy to pay $1,900 for the TV we spoke about yesterday." But the acceptance must be made within time prescribed. Therefore, there is no valid acceptance between Emma and Tony so that they have no agreement between Emma and Tony.
Consideration is essential in every simple contract and promiser must provide consideration for the promise they have received. It must be sufficient and must amount to something more than party already obliged to do. In this case, the type of consideration is Executory because if Emma promises to pay this widescreen television after the counter-offer, Tony will sell it at that price so that there is a legal value consideration between Emma and Tony is