Contract Law Problem Answer

Essay by miwtownUniversity, Bachelor'sC, March 2012

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Part A

The first issue that we must determine is whether there was an offer made by PecPacPro or was it a 'mere puff'; an exaggerated sales hype. Upon attempting to claim the advertised holiday, Matt is told that the offer was 'nonsense' and that they 'did not expect anyone to believe it'. In this case, the offer must be assessed objectively, meaning 'how a reasonable person, in the position of a person to whom the communication is made, would construe it'.� There is no hype or exaggerated sales pitch. There is an express promise to reward a holiday, where the instructed use of the product did not achieve the expressed result of a 5cm increase in chest size.� 'Read the advertisement how you will, and twist it about, as you will, there is a distinct promise expressed in language, which is perfectly unmistakable'�; 'use the PecPacPro just twice a day for two months and we guarantee you will add 5cm to your chest … the PecPacPro will work for you, it's tried and tested, in fact if you don't add 5cm to your chest measurement after using the PecPacPro twice a day for two month, we'll give you a one week holiday on Hamilton Island for two, airfares included, absolutely free … you have nothing to lose!'.

In this example, we have a unilateral contract:

you have an offer, which is to become liable to anyone who, before it is retracted, performs the condition, and although the offer is made to the world, the contract is made with the limited portion of the public who come forward to perform the condition on the faith of the advertisement.�

The promise made, proposes an exchange of a commitment to carry out the promise in exchange for something specified.� In this...