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Contract law

Answering any contract law case question requires you to do the following: identify and discuss legal issues, apply the law to the facts, and cite relevant cases.

Reading the question

When reading any legal case problem, ask yourself the following questions:

  • What is the general issue here?
  • What are the particular legal issues?
  • How do these issues relate to the facts of the problem?
  • What case law is relevant to the facts presented?

Read the following case scenario and try to answer the questions above.

James saw a classified advertisement in a magazine offering to sell Kate's piano for $4,000.
James wrote to Kate stating that he would 'take the instrument at your price'.

On 1st May, Kate wrote to James stating that she now wanted 5,000 and would keep her offer open for a week. James received the letter on 4th May and wrote back to Kate stating he agreed to pay the 5,000 'at your convenience'. The letter unfortunately didn't arrive until 11th May. The next day (5th May), Kate had lunch with her sister Julie. They discussed the piano and agreed that Julie could have the piano for $3,500 if she minded Kate's children on Saturday nights. On 6th May, the piano was delivered to Julie's house.

Analysing the question

When analysing any legal question you are required to:

  • identify the legal issues – general and particular
  • apply the facts to the law
  • cite relevant cases to support your answer.

The importance of analysing the general legal issue(s) is to determine what type of law(s) is/are applicable, e.g. contract, negligence, corporation etc. Once the general area has been determined, the particular legal issues relating to that area can be analysed.

Read the following contract law legal scenario involving James and Kate, and the sale of a piano. The first two sentences outline the intention to create a legal relation, as James makes an offer for the piano, which Kate accepts. Read the passage and observe the highlighted text to discover how the issue can be broken down into key elements.

James saw a classified advertisement in a magazine offering to sell Kate’s piano for $4,000. James wrote to Kate stating that he would "take the instrument at your price. On 1st May, Kate wrote to James stating that she now wanted $5,000 and would keep her offer open for a week. James received the letter on 4th May and wrote back to Kate stating he agreed to pay the $5,000 "at your convenience".The letter unfortunately didn't arrive until 11th May. The next day (5th May) Kate had lunch with her sister Julie. They discussed the piano and agreed that Julie could have the piano for $3,500 if she minded Kate’s children on Saturday nights.


Here is a model answer for this activity.

Look at how the legal issues (blue text) are woven into the facts (yellow text) of the case with the case citations (red text).

Kate's advertisement is an invitation to treat. An ad can be an offer: Carlill v Carbolic Smoke Ball, but is more likely to be an invitation to treat: Partridge v Crittenden. Although not exactly business, there is no reason to doubt intention to create legal relations. James' first letter is an offer, a definite promise to take the piano at her price (Cp Harvey v Facey: mere response to a request for information as to the price). Kate's reply is a counter offer, rejecting James' offer (Hyde v Wrench). There is no requirement for her to hold it open for a week as there is no consideration provided by James, so it is not an option (Goldsborough Mort v Quinn). However, if she wishes to revoke the offer, the revocation must be communicated before James has accepted (Dickinson v Dodds). Because the offer was made by post, and no method of acceptance prescribed, postal acceptance is appropriate: Adams v Lindsell. Acceptance is complete upon posting. Assuming James posted the letter on the 4th of May, a contract is formed on that date. Kate, therefore, breaches that contract by selling the piano to Julie on 5th May. Her agreement with Julie may not be legally binding as it is a family arrangement, though that presumption can be overcome (Wakeling v Ripley). It may also be too vague to be enforceable: for how many Saturday nights must Julie mind Kate's children?

Case citations

To answer any legal question, you must apply the facts to the law and back up your arguments through citing relevant legal cases.

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