Business story Essay Example | Topics and Well Written Essays - 1250 words

Business story - Essay Example Jose found the carcass of the second dog, which had been killed subsequent to being run over by a car. Jose took the carcass to Ahmed who refused to pay for the carcass. Fatima, Ahmed's sister, found the third dog and gave it to Ahmed, who refused to pay her anything whatsoever. Since, one of the dogs was dead and as two dogs would be unable to pull the cart, Ahmed placed posters around the city cancelling the promise of a reward. Susan not noticing the leaflets of revocation returned the dog she found to Ahmed, who refused to pay her anything. The relevant legal position in this respect is that unilateral contracts are one-sided contracts where someone makes a promise in return for an act. In Balfour v. Balfour there was no intention, hence there was no contract though they lived together1; further, in Merritt v. Merritt there was no intention and the parties were not living together, hence, there was no valid contract2. The facts of this case are that The Carbolic Smoke Ball Co placed an advertisement in a newspaper, which stated that a 100 reward would be paid by it to any person getting infected by influenza, colds or any disease resulting from the common cold. After having used the ball three times daily for two weeks according to the printed directions supplied with each ball, an amount of 1000 would be deposited with the Alliance Bank, Regent Street. Mrs Carlill bought the ball and duly caught flu. The company refused to pay, stating that it was not an offer, but a mere advertising publicity stunt. The Court held that the advertisement was a genuine offer, which could be accepted by using the Smokeball and catching flu. Intention was demonstrated by the deposition of money in the bank4. However, if the offeree has commenced performance of the act then the offer cannot be revoked without providing a reasonable opportunity to complete the offeror's requirements. In Abbott v Lance it was held that acceptance must rely upon the offer5. The Cases Williams v Carwardine6 and R v Clarke7, also illustrate this point. The advertisement indicated the promisor's intention to commit himself legally. Susan incurred expenditure and expended her valuable time in searching for these dogs. The first issue to be determined is the effect of Ahmed's advertisement. The decision in Carlill v Carbolic Smokeball Company was that the offer of a unilateral contract can be made by an advertisement and to revoke it the offeror must use a method of communication, which reaches most if not all of the people who had viewed this offer8. The law generally insists on identifying an offer and acceptance as the basis for the existence of a contract. An offer indicates the terms on which an offeror intends to be bound. Offers must be distinguished from invitations to treat or deal, negotiations and auctions. Offers can be made to individuals, a number or class of people or to the world at large. An offer to the world at large usually takes place in reward contracts which are a major application of the concept of unilateral contracts. An offer can be terminated by rejection, counter offers, revocation - unless required conduct has begun - , lapse of a reasonable period of time or in the event of death of the offeror. To prevent revocation of an offer, an