An Offer and an Invitation to Treat - Sarah - Andy - Bob Case Study - Law Assignment Help

Assignment Task:

1. se relevant case law discuss the difference between an offer and an invitation to treat. 

2. Sarah is very keen on sailing and wants to purchase a yacht.  Looking through the for sale advertisements on treegum, Sarah notices that Andy has a yacht for sale.  Sarah contacts Andy and arranges to inspect the yacht.  On Thursday afternoon Sarah and Andy meet at the local marina.  Andy shows Sarah the yacht.  Sarah is extremely happy with the yacht and has just one question.  Sarah says that she will purchase the yacht from Andy only if it is less than 10 years old.  Andy responds that he can guarantee that the yacht is only 5 years old.  On that basis Sarah agrees to purchase the yacht. 

Andy has a contract of sale drawn up which Sarah signs.  Unfortunately for Sarah she discovers that the yacht is closer to 15 years old than the 5 that Andy claimed.  Sarah approaches Andy with this information and demands her money back.  Andy has a copy of the contract and explains to Sarah that none of the terms of the contract mention the age of the yacht.  Andy explains to Sarah that they are only bound by the terms of the written contract.

Advice Sarah as to what only bound by the terms of the contract means and also what, if any, exceptions to this rule may apply.  Your answer should include references to common law.

3.  Bob is a Melbourne lawyer.  One day, a group of friends by the names of Elsa, Anna, Olaf, Kristoff come to see Bob for some general legal advice. All four are in negotiations with Disney to star in ‘Frozen 3’ and want some guidance on the concept of ‘consideration’. 

a. Disney have offered Elsa $100.00 in consideration for her committing to a 12 month shoot.  Elsa is a little dismayed because Frozen 3 is projected to make in excess of 1 billion dollars.  Elsa wants to know whether $100.00 is satisfactory in terms of constituting a legally binding contract?

b. Anna is concerned that Disney may add in additional terms once an agreement is reached between them.  Can Disney do this?

c. Olaf has been promised by Disney to be paid additional sums of money if he performs additional tasks.  Although he has not previously performed these tasks, they were foreseeable when he signed his original contract.  Will Disney be bound to pay him the additional sums?

d. Kristoff has been promised by Disney to be paid additional sums of money if he performs additional tasks.  He has not previously performed these tasks and they are tasks that fall outside of those duties and responsibilities of his original contract.  Will Disney be bound to pay him the additional sums?

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