Law of Contract

Law of Contract is one of my six modules for my chosen degree of Law and Criminology, additionally as part of my Law of Contract module it is essential for me to complete a coursework of 2,500 words on the above quote where I am required to follow a scenario and present my advise on what to do.

This assignment is based on a contract made between a computer firm Ð''Wowee Computers Ltd', the offeror and a customer called Frank the offeree. Frank wishes to play his Ð''Pentasis' music software programme on a computer in order to play and record his music and therefore went into the shop to purchase a computer. Gail a sales assistant whom offered to help Frank then approached him. Frank then accepted Gail's offer to help and explained what he needed and therefore requested for information on the computer he required. Gail assured Frank it was the right computer and therefore he purchased it to later find out that he needs more equipment, which will cost more money. Due to all the hassle Frank has received in purchasing this computer on the arrival of his invoice he did not pay for his computer. Frank cannot leave matters the way they are at the moment and neither will Wowee Computers Ltd as they are waiting for their money from Frank. It will not be long before Wowee Computers Ltd seek legal advice and take action on Frank if he continues not to pay for his computer, there are several issues that need to be looked at a lot closer in order to advise Frank on what to do.

In relation to Frank's problem important issues will be raised on a number of areas, mainly based on what Frank would say, Ð''the nuisance caused by the computer firm Ð''Wowee Computers Ltd' and its sales staff'. To Frank this contract offered by Gail, one of many sale staff of Wowee Computers Ltd may be a counter offer. This is because the contract has not yet been made official has Frank has not paid for his ordered equipment and nor is yet planning on doing so therefore by Wowee Computers Ltd telling Frank he has to buy more equipment, a sound-card which is going to costs him an extra Ð'Ј500 the offer has been changed and therefore a counter offer. Another problem Frank faces is that the contract may also be an Ð''effect of silence'. This is because of false information being given by Gail, the sales staff of Wowee Computers Ltd. Once Frank had explained to Gail what it was he wanted to do and what he needed Gail told Frank that the system he requires is a CRS5X system which will cost him Ð'Ј1000 however Frank also requires a sound card costing Ð'Ј500 making the total to be Ð'Ј1500 this was not told by Gail and therefore Frank now faces extra expenses. This contract is also a Ð''unilateral' offer as various notices were printed on the back of the order from and these notices are the offer put out by the offeror with an attached condition. Finally, the overall problems concerned with this case are due to the contents of the contract not being clearly put forward.

In order for a contract to take place one needs to consider the following definition: "A contract may be defined as an agreement which is either enforced by law or recognised as affecting the legal rights or duties of the parties." Treitel (1989)

Which means that are needs to be considered whether or not there is an agreement to start of with, the terms of the agreement. Whether the agreement can be legally enforced or recognised and if the agreement is broken then what the consequences would be. Referring to Frank and Wowee Computers Ltd there is an agreement, which involved Gail Ð''assuring' Frank of the computer he needs and Frank agreeing to have the computer by paying a Ð'Ј100 deposit. This then binded the contract with Wowee Computers Ltd and Frank by Frank accepting the offer of Wowee Computers Ltd and their Ð''invitation to treat' of their displayed computers. The te4rms of the agreement are not verbally communicated however; there is a print on the back of the order form, which was handed over to Frank by Gail once he had paid for his deposit. On the back of the order form there were various notices in small print one of which stated: "No guarantee is given that a particular computer will work with all software that is currently available" Gail also verbally tells Frank of another term of the agreement and that was that delivery would be in about ten days. Despite all of the above the agreement does not suggest anywhere or mention of the consequences if the agreement is broken, does this therefore complete the agreement?

There are a number of legal rules and principles in which Frank and Wowee Computers Ltd may look at in order to proceed further. Frank could say that he did not accept the offer as he has not yet paid for the computer, he could also say that he has not sighed for anything to prove that he has accepted the offer. However, Wowee why it is hard to say whether he has accepted what was written, the law suggests that Frank could have accepted the offer of having the computer and agreeing to their term on the back of the order form without even knowing. With reference to the Computers Ltd could say that Frank has accepted their terms and conditions of the offer. It does not suggest whether Frank read the notice on the back of the order form, he could have simply not seen or just as well read it and not taken any notice this is case of Carlill v Carbolic Smoke Ball Co 1893 it is possible to understand what it is Wowee Computers Ltd are suggesting about Frank agreeing to the contract without having to know about it. In this case the Carbolic Smoke Ball Co introduced their smoke balls, which will cure asthma and offered a Ð'Ј100 to anyone who caught influenza once being treated with the balls. Carlill was a customer who did get influenza and therefore claimed for her money which was said to be part of the advertisement however, the court agreed that Mrs. Carlill was unable to claim her money as she herself agreed to taking the balls and therefore agreed for the consequences which was her getting the flu which the court claimed t be part of the contract. If this is the situation with the case of Frank and Wowee Computers Ltd then Frank cannot do much about it, as the contact has been binded together. It is stated in the Weekly Law Reports dated from 1953 page 245 Ð''that such cases were either an exception to the rule or ones in which acceptance need not precede the performance'. It is this rule that brings out the Ð''unilateral' in a contract.

The definition of Ð''Unilateral' is an offer put forward by one party with an attached condition. This is exactly what has happened in between Frank