CAVENDISH UNIVERSITY –

ZAMBIA
ASSESSMENT BRIEF AND FEEDBACK
FORM

STUDENT No. 081-995

LECTURER NAME: MR. MAKONDO

MODULE BUSINESS LAW

MR. SELENJE
TEST NUMBER: 01
DATE HANDED OUT: 09 /09/2022
DATE DUE IN: 10/09/2022

BUSINESS LAW TEST

1. (A) An offer is a declaration of a desire to be bound by specific conditions. It can be approved,

as in Carlill v. Carbolic Smoke Ball Co. (1893). An offer may be made orally, in writing, or by
conduct. It won't go into effect, though, until the offeree is informed of it. For instance, if a
reward is given for returning a lost item, the award cannot be claimed by someone who returned
the item without being aware of the reward. However, an invitation to treat is only a request for
proposals or to begin negotiations, as in the case of Gibson v. Manchester City Council (1979). It
cannot be accepted in order to result in a legally binding agreement because it does not meet the
qualifications to be an offer.

(b) FMC indicates in the email that the cherry-picker is accessible to Iqra and that she should
"drop in if she wants it," showing their desire to enter into a contract should she accept the offer.
It also includes a few phrases related to model and price. Consequently, it is an offer.

2. (a) Termination of an offer. Once an offer has been terminated, it cannot be accepted. An
offer can be terminated by:

 Revocation
 Rejection
 Lapse.

(b)(i) Revocation of an offer must be communicated to the offeree - Byrne v van Tienhoven
(1880), but this may be by a reliable third party - Dickinson v Dodds (1876). Iqra knows, from
Eric’s comment, that the last of the cherrypickers has been sold. It is therefore clear to Iqra that
FMC will no longer intend to be bound by the terms of their offer. The offer to sell to Iqra is
likely, therefore, to have been revoked, in which case no contract is formed by her purported
acceptance.

(ii) An offer will lapse after a reasonable time - Ramsgate Victoria Hotel v Montefiore
(1866). Because this was the busy summer period, and FMC have indicated that she needs to
respond quickly, it is likely that in those circumstances, a reasonable time will be short, and the
offer will be taken to have lapsed before the expiry of three weeks. It is unlikely, therefore, that
Katrina has accepted FMC’s offer.

3. (a) Acceptance is the complete and unequivocal consent to an offer's terms. It has to "reflect"
the proposal. Entores v. Miles Far East Corp. established the broad principle that acceptance
must be communicated to be effective (1955).
 (b) In accordance with the Felthouse v. Bindley (1862) ruling, the offeror cannot interpret
the offeree's silence as acceptance of the offer by agreement. Giles hasn't taken any action of his
own to accept the offer. Giles's "silence" does not signify an acceptance of the offer as a result,
and no agreement is made between Giles and FMC.

4. (a) Ways that terms may be implied into a contract are:

 Through custom;
 Through implication of law (‘implied in law’);
 Through implication on the facts of a case, (‘implied in fact’), e.g. under the business
efficacy test or the ‘officious bystander’ test.

(b) The contract is a commercial sale of goods, and so the following terms will be implied by the
Sale of Goods Act 1979:

 That the goods correspond with the description by which they are sold;
 That the goods are of satisfactory quality;
 That the goods are reasonably fit for purpose.

5. (a)Terms may be included in a contract in the following ways:

 By real or reasonable notice;

 With a signature
 Through interactions;
 According to general consensus.

(b) By way of course of transactions, the word might be included in the contract. The
interactions between Eric and FMC have been regular—monthly for five years—and consistent
—as they have been in the past. Hollier v. Rambler Motors, page 7 of 10. (1972). Therefore, it is
likely that the phrase is included.