General Principal Of Law Case Study

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Question 1a: The legal issue in this question is whether or not there is a binding contract between Leila and Julie since Julie had returned Leila’s gold locket and chain without telephoning Leila first. In this situation, the general principal of law relevant to this issue is that, Leila has made a commercial agreement of a unilateral offer by placing an advertisement in the newspaper. This offer has been made to the world at large hence, a promise of performance of an act made to the world cannot be revoked. This principal of law has been justified in the case of Carlill v Carbolic Smoke Ball Co (1893) 1 QB 256. In this case, Carbolic Smoke Ball has posted an advertisement stating that whoever bought the smoke ball and used it correctly …show more content…

The general rule is that past consideration is not a valid consideration. This principal of law was established in the case of Roscorla v Thomas (1842) 3 QB 234. In this case, Roscorla bought Thomas’s horse. After the sale, Thomas promised that the horse was “sound and free of vice”. However, the horse proved otherwise. When this matter went to court, it was held that Thomas’s promise is concluded as a past consideration as the promise was made after the …show more content…

In the case of Hyde v Wrench (1840) 49 ER 132, Hyde made an offer to Wrench to buy his estate at a lower price but his offer was then refused. When Hyde sought to accept the initial offer, it was held that there was no contract made since the initial offer no longer exist. The principal of law established from Hyde v Wrench(ibid) is a counter-offer effectively destroys original offer. However, the termination of contract due to counter offer would only be applicable if Edwin and Adam did not enter into a contract for the purchase of the car at an agreed price of

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