IRAC method

You have been given the facts. Compose an answer using the IRAC method – Issue (2 marks), Rules (8 marks), Apply (8 marks), Conclude (2 marks) method.

The assignment is a MAXIMUM word limit of 1000 words.

Marks be will be allocated using a rubric based on the marking criteria below.

This assessment is worth 20% of your final grade.

QUESTION:

Joe has worked as a plumber for 45 years. He is about to retire and is looking at some options to invest his superannuation to give a good return on the money he invests.

One day last year Joe was reading a business magazine while he was waiting at his doctor’s surgery. In the magazine he read an advertisement that was selling InvestorPlus software. The advertisement read:

InvestorPlus Software is a new and innovative computer program. It acts as your own personal stockbroker and helps any novice be a successful investor on the stockmarket. If you purchase InvestorPlus and trade on the stockmarket according to its directions for 6 months, we guarantee that you will make a 30% profit on your investment. If this does not happen we will refund the purchase price and pay you $5000.00.”

Joe purchased the InvestorPlus software, installed it on his computer and used it according to directions. At the end of 6 months, however, Joe had actually lost 20 % of the value of the superannuation funds he had invested using InvestorPlus. He was furious that he had lost so much money. Joe requested a refund from the makers of InvestorPlus but they refused and said that they had placed an advertisement in the same magazine last month cancelling all previous offers. Joe wants to know if he has any legal rights.

Case Details:

 

Parties:

 

  1. Joe (The buyer of investorplus)
  • Plumber for 45 years
  • Options to invest his superannuation
  • Saw the advertisement of investorplus software
  • Bought investorplus Software

 

  1. Investorplus (Software)
  • Computer Software
  • Acts as a personal stockbroker
  • Advertisement in the magazine
  • After purchase and following directions from investorplus for 6 months, “we guarantee 30% return of your investment. If not, investorplus will provide full refund and $5,000.”

 

Plot:

 

Joe used the software according to the instructions form investorplus for 6 months but at the end , he lost 20% of his investment on investorplus.

Joe requested a refund from the makers of investorplus but got refused and was informed that the offer was cancelled last month in the same magazine.

 

IRAC:

 

Issue: Is there a contract between Joe & Investorplus? And His legal rights on the terms of offer.

 

Rules:

 

Agreement= Offer + Acceptance

 

  1. Offer: A willingness to immediately enter into a contract with the person to whom the offer is made under he stated terms of offer.
  • Invitation for treat: It refers to the provision of negotiation or invitation before the acceptance of the offer. (Carlill v Carbolic Smokeball Company1892)
  • To Whom offer can be made: It can be individual, a group or even to the whole world.

Determining Offer:

  1. Willingness and the intension to bond into an agreement.
  2. Offer should be communicated (writing, verbal, conduct, etc.) to the offeree.
  3. Not complying with the terms will revoke the offer.
  4. Offer can be modified under specific consideration between parties. (Goldsborough Mort & Co Ltd v Quinn 1910)
  5. Invitation to treat (Displaying, assumptions, etc.), request for information, statements for intention (interest, potential, etc.) is not offer.
  6. Offer is made at the time of receival.

 

  1. Acceptance: It refers to the agreeing to the terms & conditions of the offer.

 

Determining Acceptance:

  1. Must rely with the terms of the offer. (R v Clarke 1927)
  2. Acceptance should be communicated (writing, verbal, conduct) to offeror, silence can be accepted only in certain situations.
  3. Acceptance cannot be a cross-offer (Tinn v Hoffman & Co 1873)
  4. Can only be accepted by the party to whom the offer was made.
  5. Acceptance is formed at the time of sending the offer approval to the offeror.

 

 

Apply:

 

  • According to Joe, they have a contract. It can be proved by his purchase of the software, which shows that Joe (offeree) was willing to get into the contract by accepting the offer of investorplus (offeror) in exchange of money. Joe formed an agreement through accepting and following to their terms of the offer by using the software according to the instructions form investorplus for 6 months (reliance). Joe accepted the offer from Investorplus when the advertisement was valid, so the agreement terms include the guarantee of refund and $5,000.

 

  • According to Investorplus, there’s no contract expect invitation to treat. Investorplus believes that the advertisement is an invitation to treat and also state the offer was revoked last month, showing no formation of contract.

 

Conclusion:

 

Reviewing all the fact and aspects of the case, there is a contract between Joe and Investorplus as the contract was formed when the offeree (Joe) accepts the terms of offeror (Investorplus), which proves that at the time of formation of agreement (offer + acceptance) the terms included the guarantee. Joe has the legal right to claim his contract and will be provide only the refund and $5,000 as per the agreement (but not the lost amount).

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