Question

Barnyard Reads Pte Ltd (“BR”) operate a bookstore in the western part of Singapore that sells a range of books, including fiction and non-fiction titles.  

In time with the Great Singapore Sale, BR decided to do a promotional exercise to increase consumer awareness of its brand, and to encourage sales.

BR took out a large advertisement with the daily newspaper on 1st June with the following text:

“Great Singapore Sale! Barnyard Reads is having a promotion! Any customer who sends us a letter with the name, identification number and contact particulars, will get a $10 coupon voucher that can be used for the purchase of any book. The coupon vouchers have already been printed and are ready for distribution to you!”

Sue-Ann saw the advertisement on 1st June, and posted a letter with the required details on 2nd June.

When BR executives saw the advertisement on 1st June, they realized that they did not put any limit on the number of coupon vouchers that may be issued. Due to the overwhelming response, they decided to take out another advertisement (in the same newspaper) on 4th June to say that the promotion has closed with immediate effect.

Sue-Ann’s letter was received by BR on 5th June. As BR wanted to terminate the promotion on 4th June, BR did not send the coupon voucher to Sue-Ann.

Ross is another customer who has previously purchased books from BR. He reckons that since he has previously given his contact particulars to BR for a contest that BR organized, it would be “silly” for him to post a letter to provide his details again. Instead, he went down to BR’s store on 1st June (after seeing the advertisement), and asked for the coupon voucher to be given to him.

(a) Advise Sue-Ann whether she is entitled to the coupon voucher. In your answer, you should explain whether there was a valid contract formed between Sue-Ann and BR, and discuss the four (4) elements of a contract.

(b) Explain to Ross whether he is entitled to the coupon voucher, on the basis that he had previously given his contact particulars to BR for the contest organized by BR.

Answer 1

An Offer is a Statement contained terms when a person makes an Offer becomes bounded & it is accepted by other, it's called as Acceptance, It becomes legal binding only when the acceptance is sent to the offeror by any means, then it becomes a Contract.

here BR made an invitation to offer and when Sue- Ann saw the advertisement in the paper and accepted the offer there by sending a signed -letter which is a proof of acceptance of that offer, hence it is legally binding this becomes a Valid contract.

Four elements of contract:

1) Offer,2) acceptance .3) legal binding. 4) consideration ( consideration is the value of amount payed by the person who accepts the offer.)

a Contract can be made with or without Consideration.

for the four elements i've given definition on starting of the answer.

b) ross is not entitled for the coupon voucher because he purchased before the advertisement made by BR.

BR made an offer but the offer has not accepted by the Ross and he did n't send the acceptance letter duly signed to BR, hence ross is not eligible.