Examination Timing: 00H00M40S
Charlie's Car Sales placed a notice in a trade magazine announcing a car auction to be held outside Riverton Park on Friday morning. Lisa read the advertisement, took a day off work, and travelled 20 miles from her home, only to find that the auction had been cancelled. She is considering bringing an action for breach of contract against Charlie's Car Sales to recover her expenses for attending the advertised event.
Can she sue Charlie's Car Sales for her out-of-pocket expenses on the basis of breach of contract?
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An auctioneer's call for bids is regarded as an invitation to treat, which is a mere request for offers. In Harris v Nickerson (1873) LR 8 QB 286, it was established that an advertisement for an auction does not constitute an offer that can be accepted to form a binding contract. Therefore, Charlie's Car Sales did not create a contract with Lisa merely by advertising the auction. There was no intention to create legal relations, and thus Lisa cannot claim damages for her expenses based on a breach of contract.
Key Point: In English contract law, advertisements and announcements for auctions are typically considered invitations to treat rather than offers. This principle prevents undue liability for advertisers and ensures that contracts are only formed when both parties have a clear intention to create legal relations.
Collect Question
A为什么不对
Certainly! Let's break down why Lisa cannot successfully claim for a breach of contract against Charlie's Car Sales in this scenario.
In English contract law, there are specific principles about how contracts are formed. One key principle is the distinction between an "invitation to treat" and an "offer."
1. **Invitation to Treat vs. Offer**:
- An **invitation to treat** is an indication that someone is prepared to negotiate a contract but is not yet ready to be bound by it. Examples include advertisements, price lists, and displays of goods.
- An **offer** is a definitive promise to be bound, provided that specific terms are accepted. Once accepted, it forms a binding contract.
2. **Application to Auctions**:
- Advertisements for auctions are typically considered invitations to treat. This was established in the case of **Harris v Nickerson (1873) LR 8 QB 286**. In this case, the court held that an advertisement for an auction does not constitute an offer that can be accepted to form a binding contract.
3. **Lisa's Situation**:
- When Charlie's Car Sales placed the notice in the trade magazine, it was an invitation to treat, not an offer. Therefore, no binding contract was formed between Charlie's Car Sales and Lisa simply by her reading the advertisement and deciding to attend.
- Since there was no contract, there was no intention to create legal relations, an essential element for a binding contract.
Therefore, with no contract in place, Lisa cannot successfully claim for her out-of-pocket expenses based on a breach of contract. The principle here prevents undue liability for advertisers and ensures that contracts are only formed when both parties have a clear intention to create legal relations.
Remember, legal principles can sometimes be nuanced, and it is crucial to distinguish between an offer and an invitation to treat when it comes to contract formation.
Keep up the good work and continue to explore these concepts. Don't hesitate to ask if you have more questions!