Contract Law Assignment : Analyzing Case Study Using Ilac Method


On September 5 Robert wrote to Cameron offering to sell 50 metric tons of wheat at $250 per metric tonne. On September 7 Cameron posted a reply in which he accepted Robert’s offer but added that if he did not hear to the contrary he would assume that the price included delivery to his (Cameron’s) warehouse. The following morning, before Cameron’s letter arrived at Robert’s office, Robert read a posting on the internet which stated that the price of wheat was about to fall and he immediately sent an email to Cameron stating ‘our price of $250 includes delivery’.

On receiving Robert’s email at 10am on September 8, Cameron posted a letter to Robert confirming his acceptance of Robert’s terms. By mid-day, however, Cameron also saw the posting on the internet which indicated that wheat prices were about to fall and, having considered the matter, sent an email to Robert stating ‘I do not accept your offer of wheat’.

The price of wheat fell to $230 per metric tonne and Cameron refuses to accept any wheat from Robert. Question 1: Advise Robert regarding the above.


Issue: Can Robert obligate to Cameron to comply with the contract. Is there exists a contract amid the two?

Relevant Law; According to contract law, an assignment contract is created when two capable parties with a legally binding intention make an offer, which they are supported in accepting. (2012) Latimer

According to Smith v. Hughes [1871], an offer is made in law when the offeror informs the offeree of his intention to do any act or omission with the expectation that the offeree will confirm the offeror's communication. The offeree must be aware of the offer in order for it to be considered genuine and enforceable in law (Carlill v. Carbolic Smoke Ball Co., 1891). Offers can also be made orally, in writing, or by conduct.

When an offer is made as indicated in this assignment of rights under contract law, the offeree's acceptance of the terms of the offer is held to have occurred when he granted his approval, as was the case in Empirall Holdings v. Machon (1988). According to Stevenson Jaques& Co. v. McLean (1880), an acceptance must comport with the terms of the offer; otherwise, it is said to be a counter offer.

Further, for an acceptance to be enforceable, it must come to the offeror's awareness, as stated in Brambles Holdings Ltd v. Bathurst City Council (2001). According to the decision in Latec Finance Ltd. v. Knight, non-transmission of an acceptance is not a genuine acceptance (1969).. (2014) Bailey

Additionally, according to Adams v. Lindsell, if acceptance is made through letters, it is finalised when the letter is posted (1818).

Governing Law: According to the facts, Robert wrote Cameron a letter on September 5th offering to sell 50 metric tonnes of wheat for $250 each metric tonne.

According to Felthouse v. Bindley, for an offer to be deemed legally enforceable, it must first enter the offeree's mind and he must be aware of its provisions. Robert's offer is legitimate because Cameron knows about it, thus that makes it so.

Now, on September 7th, Cameron posts a reply with an acceptance but also a condition that states that if Robert doesn't respond, it will be presumed that the offer's price includes delivery to his warehouse.

According to Adams v. Lindsell, which was reviewed in this assignment on contract law, when an acceptance is issued by mail, it becomes enforceable right away. But in this case, the rule does not hold because Cameron's acceptance is invalid because he added a new term. As a result, on September 7th, Cameron makes a counter offer to Robert in accordance with Stevenson Jaques & Co. v. McLean.