business law

Essay by smithaprabha July 2014

download word file, 17 pages 0.0


Andy Enterprises is a newly operated sole proprietorship business selling computer parts. To kick start the business, he decided to market their VR Laptops with a 50% discount for their first 5 customers and appointed an advertising company, Pubads Pte Ltd to get the billboards done regarding this offer. Unfortunately, the advertising company made a typographical mistake by omitting the phrase "offer endorsed to the first 5 customers only" which has created confusion among the buyers of the VR Laptops. As a matter of fact, Andy has sold 5 laptops at the discounted price by the 4th January.

Case one: Billy, a student

Facts of the case:

Upon seeing the advertisement on the billboards, Billy, a student was keen in getting the laptop and wrote a letter and posted it to Andy on the 1st of January but it only reaches Andy on the 8th of January.


From the facts of the case, it can be concluded that it is an issue under the postal law.

An acceptance is binding and the contract is only said to be absolute when the acceptor notifies acceptance through mail for a return reply, even if it never reaches the offeror. This is assured under the British Case in 1892, Henthorn V Fraser summarized that it must have been within the consideration of both parties that according to the common practice of mankind, the post might be used as a method of corresponding the acceptance of an offer, the acceptance is achieved as soon as it is posted. (OCK Advocates, 2014). On the other hand, the case of Holwell Securities v Hughes in 1974 states that even though it was communicated and agreed by both parties that the acceptance can be made in writing, but by including a clause which specifically says...