Contractual Claims For Auction Withdrawal

Summary

Sama attended an auction to buy antiques, but the items were withdrawn. Advertisements are usually invitations to treat, not offers. Auctioneers can withdraw items before sale. Sama might claim reliance loss for time and money spent if she proves reasonable reliance on the ad. However, the auctioneers right to withdraw items may limit her claim.

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Answer either part (i) or part (ii) of this question. (i) A *-year-old student named Janith has a Japanese electric bicycle for sale at a bicycle shop. He is very keen on riding the bicycle and is keen to own it. The price tag of the bicycle is Rs. *,*/-. Janith goes to the shopkeeper Kumari and says, “I would like to buy this bicycle for Rs. *,*/-.” Thinking that this is a fair offer, Kumari responds, “Of course, I accept your offer of Rs. *,*/- and I will sell the bicycle to you.” However, Janith does not inform Kumari of his age, and Kumari is unaware that he is a minor. Janith signs the agreement, leaves with Rs. *,*/- in cash and the bicycle. After a week, Janith decides that he wants to return the bike and get his money back, claiming that he is a minor and the contract is unenforceable. */* In this case, consider the elements of contract enforceability, offer, acceptance, and ability to enter into the contract. (* points)
In Janith's case, the following points are relevant:
- Offer and Acceptance: There was a valid offer by Janith and acceptance by Kumari.
- Capacity to Contract: Minors generally cannot enter into binding contracts. Contracts with minors are usually voidable at the minor's discretion.
- Enforceability: Janith can likely void the contract and return the bicycle, as he is a minor.
Do you have any further questions about this situation?
use irac model
Sure, let's analyze Janith's situation using the IRAC model:
Issue:
Can Janith void the contract for the purchase of the bicycle because he is a minor?
Rule:
In contract law, the elements of offer, acceptance, and capacity to contract must be met for a contract to be enforceable. Minors (under the age of *) typically lack the legal capacity to enter into binding contracts, making such contracts voidable at the minor's discretion.
Application:
- Offer and Acceptance: Janith made an offer to purchase the bicycle for Rs. *,*/-, which Kumari accepted, forming a valid offer and acceptance.
- Capacity to Contract: Janith is a *-year-old minor. Under the law, minors generally cannot enter into binding contracts. Therefore, Janith has the right to void the contract.
- Enforceability: Given Janith's status as a minor, he can choose to void the contract and return the bicycle, and Kumari must return the Rs. *,*/-.
Conclusion:
Janith can legally return the bicycle and get his money back because he is a minor and the contract is voidable at his discretion.
Sure, let's analyze Janith's situation using the IRAC model:
Issue:
Can Janith void the contract for the purchase of the bicycle because he is a minor?
Rule:
In contract law, the elements of offer, acceptance, and capacity to contract must be met for a contract to be enforceable. Minors (under the age of *) typically lack the legal capacity to enter into binding contracts, making such contracts voidable at the minor's discretion.
Application:
- Offer and Acceptance: Janith made an offer to purchase the bicycle for Rs. *,*/-, which Kumari accepted, forming a valid offer and acceptance.
- Capacity to Contract: Janith is a *-year-old minor. Under the law, minors generally cannot enter into binding contracts. Therefore, Janith has the right to void the contract.
- Enforceability: Given Janith's status as a minor, he can choose to void the contract and return the bicycle, and Kumari must return the Rs. *,*/-.
Conclusion:
Janith can legally return the bicycle and get his money back because he is a minor and the contract is voidable at his discretion.
(ii) Stefan, a business owner in Colombo, is looking to enter into a contract with his supplier Dinesh, who is located in Hambantota, for the supply of electronic equipment. Due to the geographical distance, they decide to negotiate and conclude the contract electronically. During the negotiations, Stefan sends Dinesh an email outlining the terms and conditions of the proposed contract. Dinesh, in response, sends him a signed PDF document via email expressing his agreement to the terms. Stefan receives the document, prints a hard copy, signs it, and stores the signed document in his office. A month later, Dinesh claims that there is no valid contract because Stefan's electronic communication was not legally accepted. Stefan argues that the transaction is valid under the Electronic Transactions Act No. * of *.
Under the Electronic Transactions Act No. * of * in Sri Lanka:
- Electronic Communications: Emails and electronic documents are legally recognized.
- Digital Signatures: Signed PDFs are valid as electronic signatures.
- Original Documents: Electronic documents are considered originals.
Given these points, Stefan's electronic contract with Dinesh is valid.
Do you have any further questions about this case?
use irac method
Sure, let's analyze Stefan's situation using the IRAC model:
Issue:
Is the electronic contract between Stefan and Dinesh legally valid under the Electronic Transactions Act No. * of *?
Rule:
- Electronic communications and documents are legally recognized.
- Signed PDFs are valid as electronic signatures.
- Electronic documents are considered originals under the Electronic Transactions Act No. * of *.
Application:
- Electronic Communications: Stefan's email and Dinesh's signed PDF are recognized as valid communication.
- Digital Signatures: Dinesh's signed PDF is a valid electronic signature.
- Original Documents: The signed PDF is considered an original document.
Conclusion:
Stefan's electronic contract with Dinesh is valid under the Electronic Transactions Act No. * of *.
Do you have any further questions about this situation?
(ii) Latha, an antique dealer, decides to sell a painting that she claims is an authentic work by renowned artist Jeffrey Belling. She posts an advertisement online with a picture of the painting and a description, "Rare masterpiece by Jeffrey Belling, the last of its kind. Estimated value: Rs. *,*". Abdullah, an art enthusiast, calls Latha and expresses his interest in purchasing the painting During their conversation, Latha makes various claims about the provenance of the painting, claiming that it is the artist's last work and that it has been exhibited in prestigious art galleries in Sri Lanka. Intrigued by the historical significance Latha attributes to the painting, Abdullah agrees to buy it for the advertised price. After the sale, Abdullah discovers that the painting is actually a well-executed forgery, and that none of the information provided by Lata regarding its provenance is accurate. Abdullah decides to take legal action.
It seems like Abdullah has a strong case for legal action against Latha. Here are some factors that might invalidate the contract:
- Misrepresentation: Latha made false claims about the painting's authenticity and provenance.
- Fraud: If Latha knowingly sold a forgery, this could constitute fraud.
- Mistake: Abdullah purchased the painting based on incorrect information.
Would you like more details on how Abdullah can proceed with legal action?
irac
Sure, let's analyze Abdullah's situation using the IRAC model:
Issue:
Can Abdullah invalidate the contract with Latha due to the painting being a forgery and misrepresented?
Rule:
- Misrepresentation occurs when false statements are made to induce another party into a contract.
- Fraud involves intentional deceit.
- Contracts based on mistakes regarding essential terms can be voided.
Application:
- Misrepresentation: Latha falsely claimed the painting's authenticity and provenance.
- Fraud: If Latha knowingly sold a forgery, this constitutes fraud.
- Mistake: Abdullah relied on incorrect information to make the purchase.
Conclusion:
Abdullah can likely invalidate the contract due to misrepresentation, fraud, and mistake.
Do you need information on how to proceed legally?
Sama saw an advertisement of an auction and she was interested in buying certain antique items which were on the list. However, when she attended the auction, she noticed that the auctioneers have withdrawn the items from the list. Sama is worried about the time and money lost for the long journey she made to attend this auction and wants to make a contractual claim. Sama seeks your advice.
Sama may have a case for a contractual claim based on the principles of advertising and auction law. Here are some relevant points:
- Advertisement as Invitation to Treat: Generally, advertisements are considered invitations to treat, not offers.
- Auctioneer's Right: Auctioneers typically reserve the right to withdraw items at any time before sale.
- Reliance Loss: Sama may claim for reliance loss (time and money spent) if she can prove reasonable reliance on the advertisement.
Do you need more details on the steps Sama can take legally?
Briefly explain the essential requirements for a valid contract with suitable examples.irac use
Sure, let's analyze the essential requirements for a valid contract using the IRAC model:
Issue:
What are the essential requirements for a valid contract?
Rule:
The essential requirements for a valid contract are:
*. Offer: A clear proposal to contract.
*. Acceptance: Unconditional agreement to the offer.
*. Consideration: Something of value exchanged.
*. Capacity: Parties must have the legal ability to contract.
*. Legality: The contract's purpose must be lawful.
*. Intention: Both parties must intend to create legal relations.
Application:
*. Offer:
- *Example:* Alice offers to sell her car to Bob for Rs. *,*.

*. Acceptance:
- *Example:* Bob accepts Alice’s offer without any changes.

*. Consideration:
- *Example:* Bob pays Rs. *,* to Alice, and Alice hands over the car keys.

*. Capacity:
- *Example:* Both Alice and Bob are over * and mentally competent.

*. Legality:
- *Example:* The sale of the car is legal andpermissible under the law.
*. Intention:
- *Example:* Both Alice and Bob intend to enter into a legally binding agreement.
Conclusion:
A valid contract requires an offer, acceptance, consideration, capacity, legality, and intention. If any of these elements are missing, the contract may not be enforceable.
Do you need more details on any specific element of contract law?
i. Sama saw an advertisement of an auction and she was interested in buying certain antique items which were on the list. However, when she attended the auction, she noticed that the auctioneers have withdrawn the items from the list. Sama is worried about the time and money lost for the long journey she made to attend this auction and wants to make a contractual claim. Sama seeks your advice. use irac
Sure, let's analyze Sama's situation using the IRAC model:
Issue:
Can Sama make a contractual claim against the auctioneers for withdrawing the items from the auction list?
Rule:
- Advertisement as Invitation to Treat: Advertisements are generally considered invitations to treat, not offers.
- Auctioneer's Right: Auctioneers typically reserve the right to withdraw items at any time before the sale.
- Reliance Loss: A party may claim for reliance loss if they can prove they reasonably relied on the advertisement.
Application:
- Advertisement as Invitation to Treat: The auction advertisement was likely an invitation to treat, not a binding offer.
- Auctioneer's Right: The auctioneers have the right to withdraw items from the auction list before the sale.
- Reliance Loss: Sama might argue that she reasonably relied on the advertisement and incurred expenses (time and money) based on that reliance.
Conclusion:
Sama may make a claim for reliance loss if she can prove reasonable reliance on the advertisement and that she incurred expenses based on this reliance. However, the auctioneers' right to withdraw items might limit her claim.
Do you need more details on how Sama can proceed with herSure, let's analyze Sama's situation using the IRAC model:
Issue:
Can Sama make a contractual claim against the auctioneers for withdrawing the items from the auction list?
Rule:
- Advertisement as Invitation to Treat: Advertisements are typically invitations to treat, not offers.
- Auctioneer's Right: Auctioneers typically have the right to withdraw items at any time before sale.
- Reliance Loss: Claiming for reliance loss requires proving that the claimant reasonably relied on the advertisement.
Application:
- Advertisement as Invitation to Treat: The advertisement Sama saw was likely an invitation to treat, not a binding offer.
- Auctioneer's Right: Auctioneers have the right to withdraw items before the auction, which they exercised.
- Reliance Loss: Sama may argue that she reasonably relied on the advertisement and incurred expenses (time and money) based on this reliance.
Conclusion:
Sama may make a claim for reliance loss if she can prove reasonable reliance on the advertisement and that she incurred expenses based on this reliance. However, the auctioneers' right to withdraw items might limit her claim.
Do you need more details on the steps Sama can take legally?
. Saman and Kamal had a meeting before the order was placed. Saman brought one sample of the PPE and after being satisfied by the quality of the PPE sample, Kamal placed the order. However, when Kamal received the bulk, he noticed that it contained a manufacturing defect.
It sounds like Kamal has a potential claim for breach of contract due to the manufacturing defect in the PPE bulk order.
Some points to consider:
- Breach of Contract: The delivered goods did not match the sample provided.
- Implied Warranty: The goods should be of satisfactory quality and fit for purpose.
- Remedies: Kamal may be entitled to a refund, replacement, or compensation for the defective goods.
Do you need more details on how Kamal can proceed with his claim?
i. What are the essential requirements for the registration of an industrial design under the IP Act of Sri Lanka?
To register an industrial design under the Intellectual Property Act of Sri Lanka, these requirements must be met:
- Novelty: The design must be new and not disclosed to the public prior to the application.
- Originality: The design should be original and not a copy.
- Not Functional: The design must be ornamental, not dictated by function.
- Application: Submission of a formal application with necessary documents and fees.
Do you need more detailed information on any specific requirement?
i. Arun is an agent who works for Mahen’s company in the real estate sector. Through the eco system of the company, Arun hears about a great deal with a foreigner and he is willing to attempt it strategically. Arun asks his brother to approach the foreigner and secure a great profit that they can earn from the sale irac
Let's analyze Arun's situation using the IRAC model:
Issue:
Can Arun's actions and his brother's involvement in the real estate deal be considered a breach of duty or unethical practice under agency law?
Rule:
- Duty of Loyalty: An agent must act in the best interest of the principal (Mahen’s company).
- Duty to Avoid Conflicts of Interest: The agent must avoid situations where their interests conflict with those of the principal.
- Self-Dealing: An agent must not engage in transactions that benefit themselves at the expense of the principal.
Application:
- Duty of Loyalty: Arun may be breaching his duty of loyalty by not involving Mahen’s company in the deal and instead attempting to profit personally.
- Duty to Avoid Conflicts of Interest: By involving his brother, Arun is creating a conflict of interest.
- Self-Dealing: Arun's actions could be seen as self-dealing, as he is attempting to secure profit for himself and his brother rather than the company.
Conclusion:
Arun's actions likely constitute a breach of his duties as an agent, and Mahen’s company could take legal action against him for self-dealing and breach of loyalty.
Wouldyou like more information on how Mahen's company can proceed with a legal action against Arun, or do you have any other questions?
Dexters is a company that trades apartments, where Nishan works as an agent. Nishan was promised by the company that he would be paid *% of the profit when a deal is completed. Nishan found a good customer and the company entered into the contract with this new customer. However, until the first installment is paid by the customer, Nishan did not get the agreed amount
Nishan may have a potential claim for breach of contract against Dexters for not paying the agreed commission. Here are some key points:
- Breach of Contract: The company did not honor the payment agreement.
- Remedies: Nishan could seek legal remedies such as claiming the unpaid commission.
Do you need more information on how Nishan can proceed with his claim?
irac use
Sure, let's analyze Nishan's situation using the IRAC model:
Issue:
Can Nishan claim the unpaid commission from Dexters for the completed deal?
Rule:
- Breach of Contract: Failure to fulfill the terms of a contract constitutes a breach.
- Payment Terms: The agreed payment terms must be honored.
Application:
- Breach of Contract: Dexters promised to pay Nishan *% of the profit upon deal completion. The customer signed the contract, but Dexters has not paid the commission.
- Payment Terms: Nishan completed his part by securing the customer, so he is entitled to the agreed commission.
Conclusion:
Nishan can claim the unpaid commission from Dexters for breach of contract. He should seek legal remedies if Dexters fails to honor the payment agreement.
Do you need more details on the steps Nishan can take legally?
Malani works in the ABC Tax consultation firm. Sunil is a client of the firm and his entire tax file is handled by the firm. One day Sunil complains to the main partners of the firm about engaging Malani to do the work of maintaining his tax file at the firm. He had also worried about the money he paid to get the professional service from the firm.
It seems like Sunil has concerns about the quality of service provided by Malani at the ABC Tax consultation firm. Here are some key points to consider:
- Service Quality: Sunil is dissatisfied with the service provided by Malani.
- Professional Conduct: There may be implications regarding Malani's professional conduct or competence.
- Client Rights: Sunil has the right to expect professional service for the money he paid.
Is Sunil looking to take any specific legal action, or does he need advice on how to address this issue with the firm?
ii Discuss the legal implications of the following events in relation to the relevant legal principles and case law. (a) On December *, Niran wrote to Wimal offering to sell his motorcycle for Rs. *. *,*. On December *, Wimal offered Rs. *,* for the motorcycle. However, on December *, Niran refused to accept the offer and he was looking for another buyer. On December *, Wimal wrote to Niran indicating his willingness to go ahead with the initial offer. use irac
Sure, let's analyze the situation using the IRAC model:
Issue:
Can Wimal enforce the contract to purchase the motorcycle from Niran for Rs. *,* after initially offering Rs. *,*?
Rule:
- An offer is a clear proposal to contract.
- A counteroffer rejects the original offer and proposes new terms.
- Acceptance must be unconditional and mirror the terms of the offer.
- Once rejected, the original offer cannot be accepted unless re-offered.
Application:
- Offer: Niran's initial offer to sell the motorcycle for Rs. *,* is a valid offer.
- Counteroffer: Wimal's offer of Rs. *,* is a counteroffer, which rejects the original offer.
- Rejection: By countering, Wimal rejected Niran's original offer.
- Acceptance: Niran refused the counteroffer and did not re-offer the motorcycle for Rs. *,*. Wimal's later attempt to accept the original offer is ineffective as the offer no longer exists.
Conclusion:
Wimal cannot enforce the purchase of the motorcycle for Rs. *,* as his initial counteroffer rejected the original offer,and Niran did not re-offer the motorcycle at that price.
Do you need more information on contract law principles or any other related topic?
ii Rawan, a mango supplier in Mihintale, agreed to deliver * boxes of mangoes to the Colombo Fruity Shop on * November *. Namal, the manager of the Fruity Shop, needed the mangoes by * pm to deliver them to a manager at a reception hall. He was preparing for a wedding the next day. Rawan handed over the mango boxes to the courier service on the 8th and asked them to deliver the boxes before the 10th. Due to an accident, they were unable to deliver the mangoes on time. When Namal opened the boxes, he found that some boxes contained * boxes while others contained * boxes. Namal had instructed him to pack * mangoes per box. Discuss the legal actions.
Namal may have a potential claim for breach of contract against Rawan. Here are some key points:
- Breach of Contract: Rawan failed to deliver the mangoes on time and as agreed (* mangoes per box).
- Remedies: Namal could seek compensation for any losses incurred due to the delay and the incorrect quantity of mangoes.
Would you like to know more about how Namal can proceed legally?
irac method
Sure, let's analyze Namal's situation using the IRAC model:
Issue:
Can Namal claim breach of contract against Rawan for late delivery and incorrect quantity of mangoes?
Rule:
- A contract must be performed as agreed.
- Timely delivery and correct quantity are essential terms.
- Breach occurs if delivery is late or incorrect.
- Remedies include compensation for losses due to breach.
Application:
- Breach of Contract: Rawan agreed to deliver * boxes of * mangoes each by * pm on November *. The delivery was late and some boxes had only * mangoes.
- Remedies: Namal can claim for losses incurred due to late delivery and incorrect quantity, such as additional costs for sourcing replacement mangoes or any impact on the wedding event.
Conclusion:
Namal can claim compensation from Rawan for the breach of contract due to late delivery and incorrect quantity of mangoes.
Do you need more details on the steps Namal can take legally?
ii Nimal went to a milk shop with his friend. They ordered two bottles of cold milk, one chocolate flavoured and one vanilla flavoured. While chatting with his wife, the shop owner gave Nimal and his friend the two bottles of milk and said that due to the restrictions under the Covid * regulations, straws would not be provided. Nimal and his friend quickly drank the milk and went back to the lecture as time passed. After some time, Nimal felt a severe stomach ache and he vomited twice. When he was admitted to the hospital, it was discovered that he had food poisoning. Nimal’s friend went back to the milk shop and investigated and found that the milk bottles had not been kept at the correct temperature and that one of the milk bottles they used was contaminated. Advise Nimal and his friend on the rights and obligations of the parties, citing the case law and statutory provisions that have been decided in relation to the sale of goods.
Nimal may have a claim for breach of contract and negligence against the milk shop. Here's a brief outline of the relevant points:
- Sale of Goods Act: The shop must ensure goods are of satisfactory quality and fit for consumption.
- Negligence: The shop has a duty of care to maintain proper storage conditions.
- Remedies: Nimal can seek compensation for medical expenses and any related losses.
Has Nimal consulted a lawyer yet, or would he like more detailed guidance on the next steps?
irac method use
Sure, let's analyze Nimal's situation using the IRAC model:
Issue:
Can Nimal claim compensation from the milk shop for food poisoning due to contaminated milk?
Rule:
- Sale of Goods Act: Goods sold must be of satisfactory quality and fit for consumption.
- Negligence: The seller has a duty of care to ensure proper storage and handling of food items.
- Remedies: Compensation for damages, including medical expenses and related losses.
Application:
- Sale of Goods Act: The milk shop sold milk that was not of satisfactory quality, leading to food poisoning.
- Negligence: The milk shop failed to store the milk at the correct temperature, breaching their duty of care.
- Remedies: Nimal can seek compensation for his medical expenses and other related losses due to the food poisoning.
Conclusion:
Nimal has a strong case for compensation based on breach of contract under the Sale of Goods Act and negligence by the milk shop.
Do you need more details on the legal steps Nimal can take?