Question

Question 1 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 22nd 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.

Should Include: Identification of the legal issues in the case study Analysis of Issues For each issue, compare both existing legislation and case law with the facts presented in this case. Decision For each issue presented, and based upon existing law. Discuss and determine how each issue should be resolved. Reason for Decision Was able to communicate logically why he/she chose the winner in the case. Opposing Opinion Based on the precedent and issues, discuss any reasons why the opposing party may prevail when this case goes to court.

Answer 1

The main issue in the given case is whether there was a contract between Donald and Clinton Public Company Limited. The facts of the case indicate that Donald calls Clinton Public Company Limited after watching the advertisement to go on the moon and celebrate Christmas but after some time he decides against it and calls Clinton Public Company Limited to cancel the order but the representative of Clinton Public Company Limited states that when Donald called the company, it formed a valid agreement between the two parties and now it can't be avoided.

If we look at the laws related to the advertising, there is a clear indication that advertising does not create any kind of agreement between the seller and buyer. Advertising is seen as a call for making a deal and this deal unless made formally can be canceled anytime by any of the parties.

Looking at the above rule, it is clear that when Donald contacted Clinton Public Company Limited for its service, no contract was formed between the two parties and thus Donald has the full right for not going through the order which he placed

MLMC, Ltd. v. Airtouch Communications, Inc was a case in which the issue was whether the quotation of price in return to the call received due to published advertisement created an offer or a contract. The court decided against it.

So if we look at the above case example, and the guidelines that have to be followed in the given case, there is no contract between Donald and the company offering its service as just by responding to the advertisement, no contract is formed between the seller and prospective buyer.

The only reason when the opposing party can prevail in the stated case is when there is a formal sales contract between the seller and Donald. In that case, the seller has the right to sue the seller for the loss occurring from the denial of Donald