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1、Case study 1Samir sees a set of golf clubs displayed in a shop window for 500. He enters the shop and states he will take the clubs. The shopkeeper however says the clubs are no longer for sale. Samir is demanding that he be sold the clubs and at the price displayed. Identify the essential requireme
2、nts of a contract and discuss whether a contract exists here.A contract is an agreement between parties having the capacity to make it, in the form demanded by the law, to perform, on one side or both, acts which are not trifling, indeterminate, impossible or illegal, creating an obligation enforcea
3、ble in a court of law. A valid contract has three essential features: there must be a agreement on all material aspects; at least two contracting parties and legal obligations.A contract consists of an offer and an acceptance. If there is no offer in the first place then there can be no contract. Th
4、e basic elements of a contract include an offer and an acceptance.In the case Samir sees a set of golf clubs displayed in a shop window for 500. He enters the shop and states he will take the clubs. But shopkeeper says the clubs are no longer for sale. Samir is demanding that he be sold the clubs an
5、d at the price displayed. According to this case we can say that these is not exist a contract. In the case that a set of golf clubs are exhibited in a shop window, thus it is not an offer. Because the goods displayed in a shop window as a invitation to treat, we can know that goods displayed in a s
6、hop window (even when priced) are classed as a willingness to negotiate on the shops part. Invitations to treat also is considered to inquiry the price of goods, means a party to invite the other person to make offers. Different an offer, a willingness to negotiate only as prepared to make a contrac
7、t of behavior on the issue who is not legally binding. The customer will make the offer to buy the goods which the shop are perfectly within their rights to refuse. The invitations to treat are not legally classed as offers and therefore cannot be accepted. Before the party who gave off the invitati
8、ons to treat could not accept the other peoples offers they can revocation, and then the contract is not build. When Samir asked to buy the golf clubs the shopkeeper refused hin, and there was no acceptance. So when the shopkeeper refused Samir which is a set of golf clubs are not the good for sale,
9、 it just be used as ornament, and attracted the consumers interested. So an offer in this case is not found, either nor acceptance.A contract consists of an offer and an acceptance, we can know that there is on offer and there is on contract.Case study 2Tom is the top salesman for ABC Motors. He has
10、 been offered a job by a rival company but is concerned because there is a clause in his contract which prevents him from working for any other car company for five years. Tom is the top salesman because he regularly tells potential customers what they like to hear rather than the facts. He has done
11、 this in relation to ages of vehicles, odometer readings and vehicle service histories. Tom recently completed a deal to buy a vintage sports car for ABC Motors from Barry.ABC now discover that Barry (not his real name) had stolen the vehicle.Question 1 What is a restrictive covenant? Advise Tom as
12、to the legality of the clause in his contract. You can refer to Bluebell Apparel Ltd v Dickinson (1980) on page 146Question 2How would you classify Toms statements to the customers and what are the possible consequences for Tom and ABC motors in relation to these statements? You can refer to Smith v
13、 Sim(1954) on page 161Question 3 What is the legal position with regard to the vehicle which Tom has purchased from Barry?You can refer to Morrison v Robertson(1908) on page 1531 Restrictive covenant is a agreement which restrict the party liberty to work and trade. Such contracts are VOID unless th
14、e restriction can be shown to be reasonable to both parties involved and to the general public. There are three types of restrictive covenants: contracts between employer and employee, contracts between sellers and purchaser of a business and solus agreements. For all three types, the party attempti
15、ng to enforce the agreement must prove that it is reasonable to both parties concerned and to the general public. If they are unable to do this then the contract will be considered void and unenforceable. (from the text bookP142-142) This contract are legality, and the restriction was fair in this c
16、ontract. Because the relationship of Tom and ABC motor is employer and employee, when enter employment and employee may agree to some restriction being placed on his future employment or trade. Later the employee may feel the restriction is unfair and therefore he may break it. In such circumstances it would be up to the employer take him to court and seek an interdict forbidding the employee to break the agreement. They
