The sequel presents, a discussion that analyses the various factors associated with the interpretation of contractual terms. SummaryIt is the aim of the author of this work to scrutinise the different issues that relate to Andrew’s attempt to establish breach of contract against the Book for All company. Project Description According to the law, a contract must consist of four elements, in order to be enforceable in a court of law. There should be an offer, acceptance, consideration and intention in the contract. These elements must create a legal relation between the parties (Ryan and Cooper 2008, p.
251). The formation of a contract necessarily requires the offer made by the offeror to be accepted by the offeree. It is up to the offeror to prescribe the manner, in which the acceptance is to be made. Thereafter, the offeree has to strictly adhere to the method prescribed by the offeror, in respect of indicating his acceptance. This acceptance can be an expression by words or conduct that conforms to the terms of the offer (Kelly and Hayward 2005, p. 118). In Grainger Son v Gough, a wine list had been displayed at the premises of a wine seller; as the wine seller could not be expected to provide an unlimited quantity of wine to a customer, the court ruled that this wine list constituted an invitation to treat and not an offer (Grainger Son v Gough 1896).
In Fisher v Bell, it was held that the display of an item for sale in a shop window was not an offer, but merely an invitation to treat (Fisher v Bell 1961). This was confirmed in British Pharmaceutical Society v Boots Cash Chemists Ltd; wherein the defendant had introduced a system in their shop, according to which the customers were required to collect the medicines required by them from the drugs displayed.
The court ruled that the display of medicines was not the offer, but that the offer was made by the customer, when he presented the drugs with the necessary money, to the pharmacist (British Pharmaceutical Society v Boots Cash Chemists Ltd 1952). Therefore, the Book for All company’s letter cannot be assumed as an offer but only an invitation to treat.
The making of an offer, implies that the offeror promises to be explicitly bound. In addition, it should be possible to accept this offer; and the offer, per se, specifies the contractual terms (Kelly, Holmes, and Hayward 2005, p. 109). The advent of the notion of offer and acceptance was first witnessed, in an unambiguous manner in Adams v Lindsell. Its importance was in establishing the moment of formation of a contract, where the agreement had been arrived at by correspondence. This case gave rise to the postal rule, according to which the acceptance of an offer is completed the moment the letter of acceptance is posted.
This was the ruling of the court in this case (Adams v Lindsell 1818). Soon, it emerged as the central principle of contracts; and its application was extended to even unilateral contracts.