Problem question in contract law Essay Example | Topics and Well Written Essays - 2500 words

Problem question in contract law - Essay Example 14). The acceptance of an offer results in a valid contract. The offeree makes the acceptance in response to the offer made by the offeror. Acceptance must be unqualified, and unambiguous (Barry, 1992, p. 14). The offer made by the offeror to the offeree has to be accepted by the latter, if a binding contract is to ensue. The offeror has the choice of specifying the manner in which the offeree has communicate acceptance of the offer. This makes it incumbent upon the offeree to communicate acceptance without any deviation (Kelly, et al., 2011, p. 234). As such, in certain contracts, one of the parties promises to perform some action, if the other party does some specific act, even though the other party does not promise to perform that act. Such contracts are termed as unilateral contracts. As such, acceptance may be construed from conduct and there is no necessity for it to be communicated (Marson, 2010, p. 16). The readiness to accept offers or to enter into negotiations constitutes an invitation to treat. The main issues to be considered for solving the problem are: Whether there is a valid contract between Julia and O’Brien. Whether the telephonic acceptance by O’Brien concludes a contract between Parsons and O’Brien. ... This enraged Julia, who left the shop. An offer must be unambiguous and can be express or implied. The display of goods in a shop does not constitute an offer. It is merely, an invitation to treat. The offer comes into being when the customer selects some goods and expresses his willingness to purchase them (Barry, 1992, p. 14). Thus, it is the customer who makes the offer, in such instances. In Fisher v Bell, it was held that the display of items with a price tag in shop windows was an invitation to treat (Young, 2010, p. 13). In Carlill v Carbolic Smoke Ball Company, the defendants were the producers of a medicinal product called the carbolic smoke ball. This company gave an advertisement in the local newspapers, wherein it promised a reward of ?100 to anyone who contacted influenza or any other disease resulting from catching a cold, after having used their product. It also prescribed the dosage of the carbolic ball to be used, in its advertisement. The company also declared that one ball would last a family for several months (O'Sullivan & Hilliard, 2010, p. 15). The plaintiff Mrs. Carlill bought a smoke ball duly believing the contents of the advertisement, and used the medicine as directed by the company. However, she was infected by influenza, despite using the smoke ball for the required period and in the prescribed manner (O'Sullivan & Hilliard, 2010, p. 16). The Court held that the newspaper advertisement, in this case constituted an offer. In addition, it was held in Grainger Son v Gough that the circulation of a catalogue by a seller of goods does not constitute an offer and that it was merely an invitation to treat. This reiterated in Fisher v Bell, wherein the display of goods in a shop window, was deemed an invitation to treat and not

Banking and ICT's Essay Example | Topics and Well Written Essays - 2500 words

Banking and ICT's - Essay Example Digital technology has greatly reduced the costs of compiling, processing, and distributing information. Information and communications technology (ICT) invigorates markets by enhancing the flow of information, not in creating certainty, but making information more symmetric. The rise of the Internet, for example, has increased transparency, improving the ability of all market participants to determine the available range of prices for financial instruments and financial services (Clemons and Hitt, 2000, 4). Indeed, information-driven disintermediation is not limited to the financial sector: "The flow of information turns client relationships into markets. This phenomenon is cropping up in fields as diverse as travel agencies, real estate and the auctioning of flowers in Amsterdam" (Anon., 1998). The new markets that hand information to consumers also tend to push down prices. This is a dangerous prospect for branded goods like banking products and services, which behave increasingly like commodities. Moreover, technology has continually lowered the transaction costs of direct financing, facilitating the emergence of new electronic markets, payments and settlement networks, and new market-based risk and wealth management systems. Disintermediation is accompanied by securitization. Large firms increasingly raise finance directly from the financial markets. Companies with secure cash flows create securities from (or "securitize") these "assets," the value of which is determined by the volume and reliability of the cash flows (Holland et al., 1998, 222). The securities are then sold publicly or privately to institutional investors. Securitization of assets disintermediates banks from their traditional role of lenders to the corporate sector. Financial deregulation and information technology have both contributed to the growing dominance of capital markets by facilitating access for new issuers and investors. Forces For Change Powerful forces for change are forging the future shape of the banking industry. These include demographic, technological, and regulatory factors. Undergirding these developments is the continuing closer integration of national economies and financial systems through the process known as Globalisation. Changing Customer Needs and Preferences Populations are aging rapidly, at least in the developed Western democracies. The prospect of rising aged-dependency ratios is focusing governments and individuals on alternative means of funding retirement incomes. "Pay-as-you-go" pension schemes, under which the younger (working) generation funds the retirement incomes of the older (retired) generation, are not viable when the aged-dependency ratio rises beyond certain limits. Governments are responding by inducing individuals to make greater provision for their own incomes in retirement, restricting the availability of publicly funded pensions to the genuinely indigent.