1. Contracts made electronically: The internet is increasingly being used to order goods and services; therefore, it is important to understand when a contract made over the internet is formed. Websites are usually considered to be shop windows and, therefore, invitations to treat. The offer is made by the customer who orders goods or services on the website usually entering his name, address, and credit or debit card details. The seller then has the option of whether to accept the offer or not. The timing of acceptance depends upon the wording given on the website. Acceptance may take place when a message is sent back acknowledging the order or when the goods are dispatched.

In 2002 Kodak advertised a digital camera on its website for 100 in error (normal cost 330). Over 5,000 people placed orders and were sent an automated e-mail which confirmed the model and price has there been a valid offer and acceptance between the buyers and the seller? Explain

2. Harry appoints Lin, as an agent, to sell his microlight aeroplane and agrees to pay her 5 per cent commission. Lin sells the aeroplane to Paul for 50,000 and Harry pays her 2,500 commission. As Paul has got the plane cheaply, he gives Lin a commission of 1,000. Lin does not disclose this to Harry. Harry appoints Alice as his agent to sell two paintings. He tells her to sell the paintings for at least 10,000 each. Alice sells one painting to Kiri for 8,000. Unknown to Harry, Alice buys the other painting herself for 13,000, and sells it on to Prad for 18,000. Advise Harry, who has now learnt of the 1000 Lin received from Paul, and of Alices dealings on the paintings

3. Explain what is understood in contract law by the statement Consideration must be sufficient but need not be adequate