Economics
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Executive Summary:
According to the given assignment I work as a junior clerk for Ikkelbod, Dwyer & Summ, Accountants. The superior partner of the firm gives two different problems to me and I have to research these problems and give him all legal options which he in turn can then advise the respective clients with.
Among the two cases the first one is based on the Law of Contract and the second case is based on the Minority Law.
Case – 1: Mrs Smith v Watson’s Multi – Story Car Park
Fact:
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Mrs Smith drives into the Watson’s multi—story car park at 4.55 pm and takes a ticket from the machine.
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This ticket has a printed black metallic strip that records the time and the legend that by accepting this ticket the holder is bound by the terms and conditions of the contract.
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After entering the car-park, on the first floor she finds a big sign which states the terms of the contract. One of these terms is that if any car left after 5 pm it will be charged $50.00 for that.
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Mrs Smith does not like this idea and try to leave the car-park at once.
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However there is a line of exiting cars and her departure is delayed by 10 minutes.
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The pay booth attendant tries to charge Mrs Smith $50.00 for her stay.
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Mrs Smith refuses.
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Mrs Smith claims that a contract was not formed.
Issues:
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Was there any offer?
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Was there any acceptance?
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Was the term notified to Mrs Smith timely and perfectly?
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Were the terms included after the contract had been completed?
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Were the terms incorporated in the contract for parking?
Rules:
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What is a contract:
Traditionally contract means an agreement between two or more people which can be enforced by the Law.
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Terms of a Contract:
According to the Law terms means the conditions by which limits liability of a person who insert them into a contract.
The terms of a contract must be introduced at the same time as the contract is being formed so that the other contracting party has the opportunity of accepting or rejecting them. Any subsequent term will not be effective when the contract has been made and the term will not function.
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What is an Offer:
An offer is a proposal that one person give to another person. According to the law the person who gives the offer is called the offeror and the person who accepts the offer is known as the offeree.
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Key Feature of Offer:
There should be an aim or eagerness to be bound or it may be an invitation to treat
It should be a solid assurance or it may be a appeal for information
It should be communicated to the offeree
It can be made to one person, a group or to the whole world
It can be kept open if supported by consideration
All terms and conditions have to bring to the notice of the offeree and follow precisely before the contract made
It can be terminated
To solve this case I can consider two cases as the precedent. The cases are:
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Thornton v Shoe Lane Parking Ltd [1971] 2 QB 163
In this case, Mr Thornton drove his car to the Shoe Lane Car Parking building, received a ticket from the machine and drove up. The ticket stated the �condition of use’ which was displayed on the grounds. Notice displayed inside the parking building exempted the owners from liability for personal injuries. Unfortunately Mr Thornton was injured and sued. He was successful. In this case the contract was formed when Mr Thornton received the ticket and reasonable steps had not been taken to bring the notice to Mr Thornton’s attention. (Business, Society and the Law, Terry & Giugni, 3rd Edition, Page no.318)
In the case of Thornton v Shoe Lane Parking Ltd [1971] 2 QB 163, Lord Denning said that exclusionary terms printed on a parking ticket had no contractual effect because they were not notified to the customer earlier to the contract being made. (Business, Society and the Law, Terry & Giugni, 3rd Edition, Page no.318).
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Olley v Marlborough Court [1949] 1 KB 532
In this case, Mr and Mrs Olley Arrived at the Marlborough Court Hotel and paid advance for a week. When they went up to their hotel room, they found a notice on the wall. The notice stated that the hotel was �not liable for the articles lost or stolen if not handed to the manageress for safekeeping. Later Mrs Olley locked the door, went out and hung up the key in the reception office. Afterwards someone stole her fur coat. As she sued, the hotel tried to rely on the notice to keep away from liability. The hotel was liable and the notice in the hotel room was ineffective as it was not visible at the time