Contract Law

1. The defendant auctioneer advertised that certain items including office furniture were to be sold at an auction sale. The plaintiff attended the sale to buy the furniture but it was withdrawn from the sale. The plaintiff claimed that the advertisement was an offer to sell the furniture which he accepted by attending the auction. Is the plaintiff correct? Why/why not? The advertisement did not amount to a promise to sell. Advertisement for an auction is normally an invitation to treat the bid is the offer which can be accepted by the auctioneer. 2. After supplying coal to the train company for many years, Carlos agreed to a draft contract suggested by the company. The company never formally signed the contract but Carlos supplied them coal according to the terms of the contract. A dispute occurred and Carlos claimed that there was no legally binding contract so he was not liable. Is there a legally binding contract? Why/why not?

there was an agreement because both parties treated the draft as legally binding. They acted by its terms. The company ordered the coal, Carlos supplied it acceptance can be by words or conduct. 3. Claudia offered to sell her farm to Annie for 1000 pounds. Annie responded by offering 950 pounds. Claudia refused. Annie then tried to accept Claudias original offer of 1000 pounds. Is there a contract for Annie to buy the farm for 1000 pounds? Why/why not? Theres no contract. Annie rejected the offer by making a counter offer. And Claudia rejected her new offer. The original offer is dead unless Claudia decides to offer it a second time for 1000 pounds. 4. Julian offered to buy shares in Liche Ltd. The company posted a letter accepting the offer. The letter never arrived but Julians name was entered as a shareholder. Does Julian have to pay for the shares? Why/why not? The postal rule acceptance is communicated on posting not delivery so theres a contract and Julian must pay. 5. Joseph, the husband, worked in South America while his wife, Mary, had to stay at home in Liverpool because she was sick. Joseph agreed to send Mary 500 pounds every month. They subsequently separated and Mary sued Joseph for money owing under their agreement. Does Joseph have to pay Mary? Why/why not? Theres a presumption that between husband and wife, theres no intention to create legal relations. 6. Luca, the owner of a large music studio, wanted to sign the singer Frankie Fontane to his company. Luca offered Frankie a contract worth 5 million pounds per year for the next five years. Frankie was unsure whether he should sign the contract. Luca pulled out a gun and told Frankie that either his brains or his signature would be on the contract. Frankie signed. Does Frankie have to obey the contract? Why/why not?