Tuesday, March 30, 2010

HOME WORK (CASE 1 ) GROUP WORK........

GRUOP MEMBERS..
1.ILANGOVAN 1091103033
2.NURUL SYAZMIN HAMDAN 1081104673
3.MAEEN NAJEEB SHABAN 1061104398
4.LAKSHMIPRIYA MAHESWARAN 1061109030
5.RACHEL JEYA KUMAR 1061101963

QUESTION 3

One day, Jay saw a banner hanging in front of her favorite cassette outlet in Alamanda which reads: “BIG SALE! LATEST TOO PHAT’S ALBUM IS UP FOR GRAB WITH 50% DISCOUNT! LIMITED STOCK! HURRY, HURRY, HURRY!”.After reading it, Jaw immediately jumped in the outlet and said she wanted that album at the said discounted price. But to her disappointment, the shop owner said that the cassette is now sold at the normal price. Can Jay sue the shop owner for breach of contract? Discuss according to contract Act 1950 and relevant decided cases.

ANSWER FOR CASE STUDIES......

To begin with, the banner hanging in front of the outlet is not a contract but a mere invitation to treat. How do we know that the banner is just an invitation to treat and not a contract? In addition to the general rule that states that all types of advertisements (banner in this case) are just invitations to treat and not contracts, many of the contract elements are not found in this case. Elements such as consideration, certainty and some others don’t exist in this case, which supports the conclusion of invitation to treat and not a contract.

From this point, we can conclude that Jay cannot sue the shop owner for breach of contract as there is no contract in the first place.

In point form:

 Identify the legal issue:
Legal issue here is the fact that the shop owner is not following what he mentioned in the banner. So, Jay wants to sue him.

 Cite the relevant law:
This case falls under two relevant rules: Display of goods in the shop (with / without price tags)
- Advertisement (Banner).
Both cases are invitations to treat.

 Apply the law:
By applying the law here, the banner is just an invitation to treat, so Jay can’t sue the shop owner.

 Legal advice:
Jay can’t don anything and the shop owner has all the right to reject her offer to buy at the discounted price.

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