Biz_Law

Biz Law Group Assignment 1: Q1) * Pearl’s legal position in this contract is at a disadvantage, as she has not fulfilled the second part of the contract. The contract consists of a bilateral (Discount given on account of payment of goods) and unilateral (Act of paying the other party in the morning). * -Both parties have entered into a bilateral contract when Clam has promised to give Pearl a 20% discount and Pearl promised to send the payment to Clam tomorrow morning after Pearl has accepted Clam’s offer through the telephone conversation. * However, Pearl was unable to fulfill the second part of the contract, which is to pay Clam in the morning, due to the train fault. The payment is only made in the afternoon, which was pass the time that they had agreed upon. * Since there was no fulfillment of the act to pay Clam in the morning, the contract is thus terminated. Pearl is not entitled to the 20% discount once the contract is terminated. Q2) * Pearl’s advertisement on the website is an invitation to treat to the public. Coral emailed her enquires to Pearl, and Pearl offered her the quotation, in which Coral has proposed a counter-offer. However, her counter offer was rejected by Pearl, and Coral accepted the terms proposed by Pearl. * A contract would be formed when Coral’s email which mentions “I confirm my booking” is received by Pearl’s email inbox. Under s 13(2): “The time of receipt of an electronic communication is the time when the electronic communication becomes capable of being retrieved by the addressee at an electronic address designated by the addressee)”, therefore if Pearl does not receive the email, there would not be any acceptance by Coral and there would not be any contract formed. * However, Coral’s email is retrieved after Coral has called to withdraw her acceptance of Pearl’s offer. Hence, the call to cancel is valid as it is within a reasonable time frame, and no contract is formed between Coral and Pearl. Furthermore, Coral has directly conveyed her rejection of offer to Pearl by mouth, which is the most efficient way to express the rejection. * If Pearl were to sue Coral for breach of contract, her argument would be invalid as there is no contract between the both parties. Coral is thus not liable to Pearl at all. Coral is only liable to Pearl if the email of acceptance is being retrieved by Pearl the night before (or before Coral has called to cancel)