Department of Business Studies

Diploma in Accounting Diploma in Business Administration January 2014 Semester COML 201D Business Law Group Assignment
Lecturer: Mr Gan Joo Kang Student Name Student ID Lim Jie Ying 1230007-DAC Lim Qian Ru 1230047-DAC Foo Yen Yin 1250131-DBA Choo Jia Yin 1250062-DAC Chong Fah Fung 1220005-DBA Marks: Remarks:

Report of Group Assignment (a) There are two issues identified in Mr. and Mrs. John Jone case, that is: 1. whether the advertisement is an offer or invitation to treat 2. Is there any offer and acceptance to form an agreement Tip Top restaurant has advertised an offer of a special dinner for the last week of January next year at a price of $100 for a couple. In this case, the advertisement is not an offer but an invitation to treat because Tip Top restaurant is making a promise in exchange for a promise. In other words, invitation to treat means that Tip Top restaurant is inviting others to make an offer. This also can be seen in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemist Ltd(1953). For the case of Carlill v Smoke Ball Co. Ltd, it involves a promise in return for a performance an act. However, the advertisement in this case in not asks any person to act the performance. Thus, the advertisement held is invitation to treat. After Mr. and Mrs. John Jones read the advertisement, they make a booking to Tip Top restaurant. Thus, Mr. and Mrs. John Jones are offeror while Tip Top restaurant is the offeree. The action of Mr. and Mrs. John Jone to make a booking is means they make an offer to the Tip Top restaurant and Tip Top restaurant have the right to accept or reject the offer. Mrs. John Jones also suggest for a dessert to be included. However, the clerk is in no position to accept it. Although the clerk have taking down Mr. and Mrs. John Jones information but the acceptance must be absolute and unconditional, so there is no any offer and acceptance to form an agreement.

On 30th January, Mr. and Mrs. John Jones arrived Tip Top restaurant but there are no table arrange for them. However the restaurant manager have offer them a table but with a different menu at same price. In this situation, this is become an offer and the Tip Top restaurant is offeror while Mr. and Mrs. John Jones is offeree. Mr. John Jones does not want to accept the offer make by the restaurant and leave the restaurant with his wife. Thus, there is no offer and acceptance to form an agreement. Mr. and Mrs. John Jones couldntake any legal action to the Tip Top restaurant because there is no agreement is formed in both situations. To sue a person, there must be a contract which has all six elements.

(b)Issue: Is the specification of the temperature of the bread making oven fulfill the main purpose of Mr. John Jones? Is it the breach of condition or breach of warranty?

On the way home, Mr. John Jones goes and collects the bread making oven that they order early. The oven is a movable property and their contract is covered by the Sales of Goods Act 1957. They test the new oven and discover that is not the one they ordered earlier. The temperature has been so high that the breads get burnt easily. In this situation, there is a breach of condition because the temperature is the important thing for making breads. The shop didnt fulfill the main purpose of Mr. John Jones which is the oven temperature has been so high. Therefore, Mr. John Jones has the right to claim damages from the supplier and also repudiated the contract because the oven is not fulfilling their needs and has breached a condition of the contract.

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