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Law Coursework Case Study Of Benitez Computers Ltd

756 words - 3 pages

In advising Benitez Computers LTD we must consider whether the fax they sentout to a number of their customers was an offer or and invitation to treat.An invitation to treat is where a party such as Benitez Computer LTD arenot willing to implement the terms of their promise but merely seeking toinitiate negotiations. As in the case study of Partridge and Crittenden itwas decided that if the advertisement such as the fax sent out was aninvitation to treat and not an offer to sell then no contract would need tobe carried out. On the other hand the fax could appear to be an offer whichis the willingness to be bound by the terms of the offer should the offerbe accepted. The fax sent out could be considered a unilateral contract.This is where a party such as Benitez Computers makes a conditional promiseand it is up to another party e.g. Mr Torres or Mr Gerrard to choose whetherthey wish to enter into that contract as in the case of Carlill and CarbolicSmoke Ball Company. In this case, the court of appeal decided that MrsCarlill performed the condition in the offer and therefore the company wasunder obligation to pay her.Mr Gerrard then telephoned Benitez Computers and left a voice mail messagewhere he would buy all the computers for £150 instead of the original priceof £200. If the original fax sent out by Benitez was an offer then the replyfax by Mr Gerrard is a counter offer which is where an offer has been madeand one party, in this case Mr Gerrard, is not happy with all the termssuch as the price and therefore wishes to negotiate to lower the price to£150.However if the original fax was not an offer then Mr Gerrard was merelyasking for a supply of information which is not deemed to be legal offer asin the case study of Harvey and Facey where they were merely enquiring aboutinformation and no formal bid was made.It appears that Mr Gerrard was interested in buying the surplus stockbecause he later sent out a letter confirming that he wished to buy up to amaximum of twenty computers. It was posted Monday but did not arrive untilWednesday. Mr Benitez replied saying that it was too late and that thecomputers had been sold. The postal rule states that acceptance by post isvalid from...

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