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jeka57 [31]
3 years ago
8

Peter, who is the owner of a Wagon R, publishes an advertisement on Ikman. Ik for the sale of his vehicle quoting a price of LKR

3,500,000=. John calls Peter and says that he agrees to buy the Wagon R for the quoted price by way of a "Crossed Cheque." Peter replies John and says that he no intention of selling the Wagon R even though he published an advertisement on Ikman. Ik Discuss the application of law of contracts relating to offer and acceptance as well as law relating
Law
1 answer:
blondinia [14]3 years ago
8 0

Answer:

Generally, advertisements made to the public in relation to the sale of a vehicle or any other merchandise at a specified price are not considered as offers for a binding contract by the courts.  Instead, they are generally considered to be invitations to treat or for the public to make a deal.  This implies that John's agreement to buy the Wagon R at the quoted price is an offer to Peter, which he is free to accept or reject.

The use of checks (cheques) is a valid means of exchange and is recognized by the courts in payment of the consideration in a contract.

Explanation:

The law of contract requires that there must be a mutual agreement (represented by an offer and acceptance), mutual assent (the legal intention to create a contract), and consideration (the price for the exchange).  Since Peter and John did not move beyond the offer stage, there is no legally binding contract or agreement between them.  Peter is free to reject John's offer to buy the Wagon R.

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