Exam 2018 Contract 436 PDF

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DEC 2018PART B – QUESTION 1(ii) According to Section 2(a) of Contracts Act 1950 (CA 1950), when one person signifies his willingness to do or to abstain from doing anything, with a view of obtaining the assent of that other to the act or abstinence, he is said to make a proposal. Section 2(h) of CA ...

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DEC 2018 PART B – QUESTION 1 (ii) According to Section 2(a) of Contracts Act 1950 (CA 1950), when one person signifies his willingness to do or to abstain from doing anything, with a view of obtaining the assent of that other to the act or abstinence, he is said to make a proposal. Section 2(h) of CA 1950 provides that an agreement enforceable by law is a contract. An offer should be distinguished from invitation to treat (ITT). ITT is a call for offer which is not intended to be binding as ITT merely invites parties to make offer. Examples of ITT include advertisements, auctions, display of goods, tenders and application for club membership. In Coelho v. The Public Services Commission, the appellant applied for the post of Assistant Passport Officer advertised in the newspaper. Subsequently, he was informed that he was accepted. After being posted to the Immigration Office, he was informed that his appointment was terminated. He then applied for certiorari to quash the decision. The court held that the advertisement was an invitation to qualified persons. The resulting applications were offers. The information conveyed to the appellant was an unqualified acceptance. Therefore, the respondent had acted ultra vires in terminating his appointment. In the case of Pharmaceutical Society of Great Britain v Boots Cash Chemist, the defendant ran a self-service shop in which non-prescription drugs and medicines, many of which were listed in Pharmacy and Poisons Act 1933 were sold. These items were displayed in open shelves. The claimant brought proceedings against the defendant for breach of the Pharmacy and Poisons Act 1933, which requires the supervision of a registered pharmacist for the sale of items in the Poison List. The court held that the defendant was not in breach, as the contract was completed on payment under the supervision of the pharmacist. The display of goods on the shelves were not an offer. The customer made an offer to the cashier upon arriving at the counter, which was accepted when the payment was taken. The cashier can accept or reject the offer made by buyer. In this case, Victoria does not have to employ Shanti as the advertisement on the newspaper is meant to be an invitation to treat, as ITT is not a contract, hence she is not bound to hire Shanti. Also, Victoria has the right to accept or reject Shanti’s application.

(ii) According to Section 2(a) of Contracts Act 1950 (CA 1950), when one person signifies his willingness to do or to abstain from doing anything, with a view of obtaining the assent of that other to the act or abstinence, he is said to make a proposal. Section 2(h) of CA 1950 provides that an agreement enforceable by law is a contract. An offer should be distinguished from invitation to treat (ITT). ITT is a call for offer which is not intended to be binding as ITT merely invites parties to make offer. Examples of ITT include advertisements, auctions, display of goods, tenders and application for club membership. In the case of Pharmaceutical Society of Great Britain v Boots Cash Chemist, the defendant ran a self-service shop in which non-prescription drugs and medicines, many of which were listed in Pharmacy and Poisons Act 1933 were sold. These items were displayed in open shelves. The claimant brought proceedings against the defendant for breach of the Pharmacy and Poisons Act 1933, which requires the supervision of a registered pharmacist for the sale of items in the Poison List. The court held that the defendant was not in breach, as the contract was completed on payment under the supervision of the pharmacist. The display of goods on the shelves were not an offer. The customer made an offer to the cashier upon arriving at the counter, which was accepted when the payment was taken. The cashier can accept or reject the offer made by buyer. In this case, the dress displayed at Victoria’s boutique glass window was an ITT. ITT is an invitation to make an offer. Therefore, Victoria has the right to accept or reject the offer by Datin Suzy. Victoria is not bound to sell the dress....