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  • Chapter 3 Structure Answer

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    TEE LEE CHEN ESTHER
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    A contract requires five elements to be valid: offer, acceptance, consideration, intention to create a legal relationship, and capacity. A unilateral offer is made when one party assumes an obligation without receiving anything in return, such as in Carlill v. Carbolic Smoke Ball Co., where a company advertised a reward for anyone who used their product and still got sick, thereby offering to pay without asking for consideration in return. When Mrs. Carlill used the product as directed but still got sick, the court ruled she was entitled to the reward as the advertisement represented a legally binding unilateral contract.

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    A contract requires five elements to be valid: offer, acceptance, consideration, intention to create a legal relationship, and capacity. A unilateral offer is made when one party assumes an obligation without receiving anything in return, such as in Carlill v. Carbolic Smoke Ball Co., where a company advertised a reward for anyone who used their product and still got sick, thereby offering to pay without asking for consideration in return. When Mrs. Carlill used the product as directed but still got sick, the court ruled she was entitled to the reward as the advertisement represented a legally binding unilateral contract.

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    5 views1 page

    Chapter 3 Structure Answer

    Uploaded by

    TEE LEE CHEN ESTHER
    A contract requires five elements to be valid: offer, acceptance, consideration, intention to create a legal relationship, and capacity. A unilateral offer is made when one party assumes an obligation without receiving anything in return, such as in Carlill v. Carbolic Smoke Ball Co., where a company advertised a reward for anyone who used their product and still got sick, thereby offering to pay without asking for consideration in return. When Mrs. Carlill used the product as directed but still got sick, the court ruled she was entitled to the reward as the advertisement represented a legally binding unilateral contract.

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    Define contract in its legal context and explain the unilateral offer with relevant case law.

    Contract is an agreement enforceable by law which requires 5 elements to be valid such as offer,
    acceptance, consideration, intention to create legal relation and capacity. The law of contract in
    Malaysia is Contracts Law 1950. Unilateral offer defined as one party assume an obligation towards
    the other under contract. For examples, Carlill v. Carbolic Smoke Ball Co. Ltd (1983). Carbolic
    Smoke Ball Co. (D) is a company which manufacture the Carbolic Smoke Ball. One day, this
    company made an advertisement by offering a reward of 100 pounds to any person who smoke the
    carbolic ball three times per day and suffer from influenza, cold or any disease. Mrs. Carlill buy and
    used the ball lead to she contracted influenza so she claim for a reward. However, Carbolic Smoke
    Ball Company rejected to pay the reward while Mrs. Carlill sued for breach of contract. Lastly, the
    100 pounds entered for Mrs. Carlill. The court held that advertisement is considered as an offer while
    any person fulfilled the requirement made by the company. There is legal contract between Mrs.
    Carlill and Carbolic Smoke Ball Company represents that Carbolic Smoke Ball Company have the
    obligation to pay the reward. The company breach the contract are requested to pay back the reward
    to Mrs. Carlill.

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