Company Law Essay Example | Topics and Well Written Essays - 1500 words - 2

Company Law - Essay Example However, advertisements are not always perceived to be offers that can legally bind the advertiser of a product. Advertisements are usually considered as invitation to treat. Miller and Jentz (2008), argue that advertisements are invitations for tenders or business deals and do not in anyway constitute a contract. Nonetheless, there are instances when an advertisement can constitute an offer. An advertisement becomes an offer when its terms are definite and the advertisement portrays the intent of entering into a legal relationship by the advertiser (Furmston, Tolhurst & Mik 2010; Miller & Jentz 2008). In such a case, the offeree has the power to transform the advertisement into a valid and binding contract through acceptance of the offer (Jennings 2013). The offer can however be terminated by the subsequent action of either the offeror or the offeree via rejection, revocation or even issuing a counteroffer (Miller & Jentz 2008; Evans 1995). As such, advising William necessitates dee p understanding of the elements that constitute to a legal and binding contract. ... William decided to advertise the vase on Monday offering it for sale for ?1500 or nearest offer. On Wednesday, Nigel, who did not contact William since their meeting on Sunday, posted a letter to William stating his acceptance of William’s offer of ?1200. Does a valid and legally binding contract exist between William and Nigel? In this case, there exist no legal contract between William and Nigel. As such, William is not in anyway liable to pay any form of damage to Nigel should Nigel decide to take the matter to a court. The advertisement put by William is merely an invitation to the public for a deal. It does not bind William to anyone who might be interested in buying the vase. If it were to be legally binding, it would mean that William is liable and legally bounded by the advertisement to all people with interest in the vase. This advice is based on the decision in the case of Partridge v Crittenden (1968). In this case, the defendant advertised in a section of a magazin e the sale of some bramble finches. Based on the provisions of Section 6 of the Protection of Birds Act 1954, the defendant was incarcerated for selling the birds for it was contravening the Act. However, he appealed his conviction. It was held that the defendant conviction was overturned arguing that the advertisement was an invitation to treat rather than an offer. Also, in the case of Harvey v Facey (1893), Privy Council, it was held that a mere statement of price does not amount to a contract. The court held that by stating the price, the defendant was merely providing information and that no valid and legally binding contract existed (Ibrahim, Ababneh & Tahat 2007; Moles n.d). Further, William’s advertisement is not definite in its terms, which would bind him to