Contract and Italian Cuisine

Tullula Investments Ltd is a large S extincth Australian company, which owns and operates many hotel and restaurants throughout Australia. Italian cuisine Ltd, a food and catering business whose headquarters are in Brisbane, supplies goods commonly used by businesses such as Tullula Investments Ltd. On September 1, 2000, Italian Cuisine Ltd move a fax to Tullula Investments Ltd, which read roll in the hay produce latest Speedy Rice Cookers at $100 each.On October 1, 2000, Tullula Investments Ltd faxed a reply stating Will necessitate four dozen. Need delivery by November 1, 2000. Upon receiving the fax Italian Cuisine Ltd then wrote back to Tullula Investments Ltd saying thank you for your fax which is receiving our attention. Subsequently and prior to November 1, 2000, Italian Cuisine Ltd packed the sift cookers and loaded them on a van for delivery to Tullula Investments Ltd, but before the van set out, Tullula Investments Ltd phoned Italian Cuisine Ltd to say that they no lo nger involve the rice cookers.TaskDiscuss the legal position of Tullula Investments and Italian Cuisine in relation to the law of contract. Use deterrent example references to support your answer.Having read the case study, analyse the case in respect to the following categories. Formulate your answer using these categories. Introduction identifies pertinent area of the law elements of a simple contractIdentify the issue(s) stretch out and acceptance, intention to fix legal relations watch and examine the laws and principles of offer and invitation to treat (ITT) moderate the laws and principles to the fact rules of offer and ITT (objective test). Include relevant casesApply the laws and principles to the fact rules of acceptance. Include relevant casesApply the laws and principles to the fact issue of revocation. Include relevant casesConclusionCase study answer guide This is the answer guide to the Tallula Investments case study. Compare your response to this guide and ma ke sure you have covered each of these points. enunciate relevant area of law contract, in particular simple contract Outline elements of a simple contract Identify elements with which there is a caper offer + acceptance = agreement (Has there been a genuine offer, which meets all requirements of law? Has there been an unqualified acceptance, which meets all the requirements of contract law?Fax by Italian Cuisine to sell rice cookers at $100 does not constitute an offer but an intention to trade (ITT) or supply of information. Define and discuss Case reference students may quote any case which discusses the difference between ITT and genuine offer, eg they may apply the test from Carlill v Carbolic to institute their answer or Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) (1953) 1 QB 401 or Partridge v Crittenden (1968) Tallula Investments reply by fax on 1 October, 2000 is not an acceptance but offer to buy the cookers at $100 each. Define and discuss Case reference Harvey v Facey (1893)Acceptance define. Apply Italian Cuisines response to Tallula Investments first reply fax receiving attention is not an unqualifiedd acceptance of Tallula Investments offer Silence is not acceptance see Felthouse v Bindley (1862) abrogation define an offer butt joint be revoked before communication of acceptance by offeror case reference Goldsborough Mort & Co Ltd v Quinn (1910) Apply and then Tallula Investments would be authorize to revoke their offer before delivery of goods takes place.Model answer Below is a model answer based on the previous categories. The fountain highlighted text shows how the law has been applied to the facts. The yellow highlighted text shows relevant case citations.The case study deals tih a simple contract, which is not required to be in writing. The elements of a simple contract are 1.Intention to create legal relations 2.Offer and acceptance (an agreement) 3.Consideration 4.Capacity of the parties 5.Certainty of terms 6.Legality of objectThe main issue in this problem is whether there is an agreement offer and acceptance However, on the first element of intention to create legal relations, it is clearly a business/commercial relationship between Tallula Investments Ltd and Italian Cuisine Ltd and therefore the presumption is that the parties intend to enter into legal relations. There is no evidence to rebut this presumption (see Jones v Vernon Pools). The next issue to be dealt with is the offer. Has Italian Cuisine made an offer to Tallula in the fax September 1, 2000 which read Can offer latest speedy Rice Cookers at $100 eachIn my facet this is not a genuine offer, it is more in the nature of an invitation to treat. The words can offer is not a definite proposal to sell the cookers at the declared price but is simply suggesting that the Speedy Rice Cookers are available for sale. The test in deciding between an offer and an invitation to treat was set out in Carlill v Carbolic Smok e Ball Co which held that an invitation to treat is a request for offers and determined by the ordinary person test.Clearly here, we have an inducement sent out by Italian Cuisine to Tallula to enter into negotiationsfor the purchase of the rice cookers. It is not a definite proposal, made with the intention that it becomes binding once legitimate (see Partridge v Crittenden ). As the fax sent on the 1st September, 2000 by Italian Cuisine is not an offer we now need to trust the position with the Tallula fax at 1st October, 2000.This reply is not an acceptance. An acceptance is an agreement to be bound to the terms of an offer. The fax by Tallula is actually an offer to buy the cookers at $100 (see Harvey v Facey ).Italian Cuisines response to the Tallula Investments fax receiving attention is not an acceptance to the offer. An acceptance must be clear and unqualified to be binding. It can be argued that Italian Cuisine is actually silent on the issue of acceptance an silence is n ot acceptance (see Felthouse v Bindley ). We must now look at the issue of the revocation and decide whether Tallula Investments is required to take delivery and pay for the cookers. Since Tallula made the offer to Italian Cuisine which was not actually accepted, they are entitled to revoke that offer. An offer can be revoked by an offeror before communication of acceptance by the offeree (see Goldsborough Mort & Co v Quinn). Tallula Investments therefore, do not have to take delivery or pay for the rice cookers as they are not bound by the contract of law.