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Lefkowitz V. Great Minneapolis Surplus Store

Decent Essays

Contracts are legally enforceable agreements made between two parties. There are many different types of contract, all made and enforced in different ways. However, for an agreement to be valid in contract, there needs to be an offer made, and acceptance. The first issue is whether or not the auction house is contractually obliged to return Barry’s 10% commission fee. The advertisement published by the auction house stated: “A commission charge of 10% of the purchase price must be paid by the buyer to Allen Auctions on any purchases made. The first 5 people to arrive at the auction house on the day of sale will have this charge waived and will be able to purchase commission free.” Generally, an advertisement is an invitation to treat, …show more content…

A similar case to Barry’s is Lefkowitz V Great Minneapolis Surplus Store, in which a small store advertised the sale of three fur coats and three fur stoles. The advertisement states: “Saturday 9 AM sharp, 3 brand new fur coats worth to $100.00. First come first served $1 …show more content…

The court found that the advertisement did not constitute an offer, but was rather an invitation to treat, as it was only a proposition. The defendant was not liable. Similarly, the advertisement published by Allen Auctions is indeed not an offer, but an invitation to enter into negotiations with a view to creating an offer. In conclusion, legally, there is no binding contract between Allen Auctions and Charlene, and she is not entitled to a reimbursement of £60. The third issue is whether or not Mr Allen is legally obliged to accept Deshi’s bid at auction. Deshi arrived at the auction house interested in a Moorcroft Queen’s Choice Vase. When the bidding was open, Deshi bid £150. However, before the bid was accepted he withdrew it. The auctioneer again asked for bids and Deshi bid £40. Mr Allen refused to accept the bid, as he believed the vase was worth much more. Mr Allen then withdrew the vase from

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