Business Law - Unit 3: Contract Law Using your plan on the previous page and IPAC, write a formal response to the problem question. Issue/s: Hint: What advice does the scenario require? Principle 1: Hint: What does the law say about an advertisernerit? What is the relevant legal authority (case)? Application 1: Hint: how does this principle (rule) apply to the facts? Principle 2: Hint: What does the law say about a request for information? What Is the relevant legal authority (case)? Application 2: Hint: How does this principle (rule) apply to the facts?Question 3 X makes an offer to sell his bicycle to Y for $100. Y tells X that he will only pay $90. x does not respond. Y tells X that he now accepts the price of $100. Is there an agreement between X and Y for the sale of the bicyde? Read the question twice. During the second time identify the material/relevant facts as you read. Issue/'s: Principle/s: Application: Conclusion:In-Class Activities Students must read the following question before coming to class. Rules as to Offer and Acceptance Question 4 Underline or highlight relevant facts Plan your answer here in class: Mr Lee has advertised a bicycle for sale. Mrs Smith has seen the advertisement and contacted Mr Lee. They arrange a (1) Issue meeting to see if they can reach an agreement on the sale. Mrs Smith: "Hello. I see you have advertised a bicycle for (P) Relevant legal principle/s sale." and precedent/s [A) Application Mr Lec: "Yes, It Is over there. Have a look If you are interested." Mrs Smith: "Okay, thanks. How much are you expecting to get7 Mr Lee: "I'm looking for $200, but I will consider reasonable offers around that price." Mrs Smith: $200 seems a bit high to me, would you accept $1807 Mr Lap: "How about $1907" Mrs Smith: "Okay, that's good. It's a deal." Has an agreement been reached between Mr Lee and Mrs Smith in the above scenario? (C) Conclusion Read the question twice. During the second time identify the materialrelevant facts as you read.(a) (b) (c) Facts Term Relevant prindple Relevant Application case Pharmaceutical In a self-service store, goods an Soviety of Gr Invitation Good on display is an display are not offers but invit but Britain * to treat Invitation to treat and not Boots Cash Che JaLions Lo Treat. The customer mik an offer. mist (Southern les an offer when presenting goods > Led at the register Partridge v Advertisements for sale are generally na Crittenden t offers but invitations to treat. Salla Invitation Advertisement Is an is canat ha forced into a contract ir t to treat invitation to treat and not he advertisement was treated as an invit an offer. ation. Grainger and Catalogues sent La customers do a Posting catalogues of Sons v Coug ot constitute an offer but an inv Invitation Items for sale to people i Lation to treat, allowing suppli to treat did not cunstitute an offer ers to manage limited stock. but invitation to treat. Advertisements which Grainger and Unilateral contracts in clear ter come under the category Sons v Gong us with an act required (such as Offer of unilateral contracts are using a product La gain a reward) considered as offers are considered offers. rather than Invitations to treat Offers cease to exist once they h No relevant ave been rejected by the offered. Rejection Rejection terminates the after. Case in this course Harvey * Fac A response providing information Supplying information ey does not equate to an offer: it m Supply of erely answers a request. information when requested is not an offer. Counter offer is a new Counter offer, it destroys the offer previous offer and the offer cannot be revived. Acceptence must be No relevant Accepterice absolute, unqualified and case in this unconditional. course Acceptance Acceptence must be made in reliance on the offer.Question 2 X offers to sell his scooter to Y for $2,000. Y is interested in buying the scooter. X says Y has a week to think about the purchase and advise him of her decision. Two days later X rings Y to let her know that he has changed his mind and will not sell the scooter to her. Y had been thinking about accepting the offer. Is there an agreement between X and Y for the sale of the scooter? Read the question twice. During the second time identify the material/relevant facts as you read. Issue/s: Hint: What advice does the scenario alm to discover? Principle/'s: Hint: What are the relevant contract rules? Are there any relevant legal authority (case)? Application: Hint: Apply the rule to the facts. Conclusion: Hint: Based on your application, UF AJALA S! agreement