Question

Clinton Public Company Limited placed an advertisement on their web page as follows;    

“Anyone interested in going to the moon? We can provide this service to you at a cost of Five million dollars. Call 800-MOON and book your flight.”

Donald’s dream since he was a kid is be the first in his family to go to the moon. He heard about the advertisement, via a friend and immediately logged on to Clinton’s web page for further details. Donald immediately thereafter called 800-MOON and booked his trip for December 22^nd 2020, because he wanted to spend Christmas on the moon.

Donald’s wife Daisy subsequently discovered what her husband planned to pursue for the Christmas holidays and is furious. She was hoping that he should use his available monies to buy her a brand new Lamborghini. She confronted him on the issue and after a few hours of arguments, he agreed to buy her the Lamborghini and forsake his much-anticipated trip to the moon.

Donald called Clinton Public Company Limited and informed them that he no longer desired to go to the moon because of unforeseen circumstances. Clinton’s Customer Service Representative informed him that he had an agreement with them, because he accepted their offer when he called and booked his flight.

Donald is confused and is seeking your legal advice on this matter.

Use IRAC method and a case to answer.

Answer 1

EXPLANATION:

There are three main elements of a legal contract. Clinton Public Company Limited (CPCL) has placed an advertisement on its web page in this case. The ad can be used as an invitation to accept rather than as an bid.Donald called CPCL, after six months or more, to book his flight. This may not be accepted as a legitimate offer and approval if it never signed a contract because the Company may not give any formal documents directly to the other Party. In this situation the lack of clarification in the agreement provision itself would, however, make it legally enforceable.

The terms and conditions of such a valuable contract worth $5 million can not be explained and agreed on exclusively over the telephone.The object of this contract is to take passengers to the moon. The situation also mentions that Donald has paid an advance or booking sum. This can not be done without a written agreement because of the high risk factor. They have, however, a valid agreement as argued by the company. Such a company may not depend on oral contracts and it is hard to justify the company's argument that, even before receiving a booking amount, it has reserved space for an unknown passenger.