Accountant's case Study Example | Topics and Well Written Essays - 1250 words

Accountant's - Case Study Example He was advised that it would be possible to have his existing machines upgraded so that they could perform more complicated programmes and decided to go ahead with this. In March Blake received a circular from Watt A. Racket plc, a company specialising in computer maintenance and upgrading of a variety of different computers including his Apropex X18s. This circular contained details of the cost of upgrading and at the bottom of the first page there was a picture of a small red hand together with the words "see last page" in feint black print. On the final page of this six page circular, in a central position, there was a box containing the following words:"The Company undertakes no responsibility of any kind for any loss damage, injury or depreciation in value arising (regardless of cause) during maintenance or upgrading operations. Customers are advised to take out independent insurance". Blake was impressed at the reasonable charges quoted and failed to notice this clause. He imme diately telephoned Racket plc and engaged their services to upgrade three computers. He was told that a confirmation of his order would be sent immediately. The confirmation, which Blake read, arrived the following day and stated that "All work is subject to conditions set out in the company's circular". When Racket plc came to collect the computers, one of them was dropped onto Blake's foot by a Racket employee. The second computer was destroyed by a fire at the warehouse, which was started inadvertently by another Racket employee, and the third computer was returned with an irreparable defect and cannot be used by Blake. According to general rules of contract law pertaining to offer, acceptance and consideration it can be said that if A makes a proposal to B it will be considered as an offer extended from A to B and if B says yes to the offer made by A then the offer will be considered as accepted. The offer will now be called as a Promise in contractual terms and 'A' will be called the 'promisor and 'B' who has accepted the offer/proposal will be called the 'promisee'. According to Atiyah,Essays on contract(1986) 'Consideration is the doctrine to establish which promises should be legally enforceable'. Also in 'Currie v. Misa(1875)L.R.10Ex.153,at p.162' Lush J. stated: A valuable consideration, in the sense of the law, may consist in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other. Every promise and every set of promises, forming the consideration for each other, is an agreement; and afterwards it culminates in to contract. Consent given should always be free consent in terms of that it should not have been obtained through any fraud, by employing coercion, exerting undue influence or through misrepresentation of facts. These basic rules of offer, acceptance and invitation to treat etc are amply illustrated in the cases 'Pharmaceutical Society of Great Britain v. Boots Cash Chemicals Ltd.(1952)2 Q.B.795' and 'Felthouse v. Bindley(1862)6L.T.157' and also in 'Fisher v. Bell (1961) 1Q.B. 394' The acceptance must assent unequivocally and without qualification to the terms of the offer. The acceptance may also be qualified by reference to the preparation of a more formal contract or by reference to terms, which have still to be negotiated. In this case as it appears on the face of it that Blake on the sending of circular by Watt A that can be taken as invitation to treat offered them to buy computers from them, that the company accepted subject to some terms and conditions. So broadly construing the terms of the contract it seems that they bind Blake. Especially in view of Thompson v. London, Midland and Scottish Ry. Co. [1930] 1