Offer and Acceptance Essay Sample

9 September 2017

In the given inquiry the issue is whether there is a adhering contract between Gerard and Reg. A contract can be defined as a voluntary premise of duty. In order to set up a contract there must be an offer followed by an credence. In order to see whether the parties have come to an understanding the tribunal would look at the purpose of the parties. Purpose will be looked at objectively. In using the nonsubjective trial the tribunals consider whether the sensible individual in the other parties’ place would reason that there was an purpose to come in in to an understanding. A good illustration of the application of the nonsubjective trial is provided in Centrovincial Estates Plc vs. merchandiser investors’ confidence Company Ltd. It should non. nevertheless. be assumed that the subjective purposes of the parties are irrelevant. A subjective trial efforts to determine the existent purpose of the catching parties. In Hartog vs. colin and Shields the tribunal adopted the nonsubjective trial topic to subjective consideration. In Gibson vs. Manchester metropolis council the House of Lords emphasized the importance of placing an offer and credence when make up one’s minding whether the parties reached an understanding.

An offer is a steadfast project to be bound in the every its footings are accepted by the other. It must be concluding. certain and unambiguous. There must be no farther dialogues or treatment required. The nature of an offer was discussed in Gibson vs. Manchester City Council. The council decided to sell the council houses to the renters. The council so decided non to sell the houses. The council sent Gibson a papers which asked him to do a formal invitation to purchase and stated that the Council “may be prepared to sell’ the house to him. Gibson signed the papers and returned it. The House of Lords held that a contract had non been concluded because the council had non made an offer capable of being accepted. Lord Diplock stated: The words “may be prepared to sell” are fatal…so is the invitation. “to make formal application to buy” . In this instance of import footings still needed to be determined.

However in Storer vs. Manchester metropolis council. under similar circumstance. the Court of Appeal found that there was a binding contract. The council had sent Storer a communicating that they intended would be adhering upon his credence. All storer had to make to adhere himself to the ulterior sale was to subscribe the papers and return it. It must be noted that certain statements made during dialogues will non amount to offers. as they lack the qualities of going an offer. such statement include ; statement of purpose ( Harris vs Nickerson ) . supply of information ( Harvey vs Facey ) . and invitation to handle ( Patridge vs. Crittenden ) . In the given inquiry Reg electronic mail to Gerard “I have for sale 500 Cadmiums from the 1970s. 80s and 90s. delight happen affiliated list of rubrics. They are in first-class status. I need to raise money desperately so am willing to sell as a whole or in portion. I’m prepared to sell for ? 1000. A speedy answer would be appreciated” . There is a inquiry whether the first electronic mail from Reg is an offer? Stating an purpose to contract or to make concern is non an offer.

It amounts merely for an invitation to handle. This was so held in Harris vs. Nickerson where an auction was advertised with invitation as to the points to be auctioned and the topographic point it would be held. A prospective bidder attended the auction merely to be told it would non be held. He brought an action against the auctioneer to retrieve the cost for go toing the auction. It was held that the advertizement was merely a statement of purpose to keep an auction and is non an offer. Therefore on this land. the e-mail by Reg will non amount to an offer. The statement is besides non certain. concluding and equivocal. Proposing that Reg do non had the serious purpose make an offer. as in the state of affairs of Harvey vs. Facey ( 1983 ) here Harvey sent Facey a wire it said “will you sell us Bumper Hall Pen? Telegraph lowest hard currency monetary value –answer paid” facey replied on the same twenty-four hours: “lowest monetary value for Bumper Hall Pen ? 900” Harvey so replied in the undermentioned words “we agree to purchase Bumper Hall Pen for the amount of nine hundred lbs asked by you. Please sent us your rubric title in order that we may acquire early possession” . Finally in this instance Privy Council advised that no contract existed between the parties. The first Telegram was merely a petition for information. So at no phase the Defendant make a definite offer that could be accepted.

By comparing the state of affairs with Harvey vs. facey. it clearly says that the first electronic mail from Reg is merely a sharing of information or invitation to handle. After the invitation to handle or sharing of information. the following topographic point is for an offer by the other party otherwise it is still on dialogue procedure. The reply e-mail from Gerard on 2nd March at 5. 30 autopsy says that “he will take all of the Cadmiums and is willing to pay ?1000 and would roll up the CDs. ”The electronic mail is concluding. certain and unambiguous. proposing that Gerard had an purpose of doing an offer. Therefore a decision can be drawn that the electronic mail is an offer. Since an offer has been established it needs to be analyzed whether this offer has been accepted. Acceptance must be concluding and unqualified acquiescence to the footings of the offer. For credence to be effectual there are certain regulations to be satisfied. The regulations that need to be satisfied are ; credence must be unconditioned: if the words capable to contracts are used when an offer is accepted that is non a valid credence ( chillingworth vs. esche ) ; credence must be on indistinguishable footings: it must be a mirror image of the offer. it is merely than we can state that there is a meeting of heads.

If the offeree effort on different footings it is non acceptance-counter offer- ( hyde vs. twist ) . credence must be communicated in existent facts to the offero: this means that until the offero or his agent gets to cognize that the offer has been accepted. there is no valid credence ( felthouse vs. bindley ) ; and the offeree must hold cognition of the offer at the clip of credence ( R vs. clarke ) . In this instance it differs from the normal state of affairss. Than hearing or waiting for an credence from Reg. on 2nd March –the same day- at 5. 40pm Gerard receives an electronic mail from Reg saying that “have changed my head. I now want ?1500 for the CDs” . besides Gerard discovers Reg’s foremost electronic mail. to which Gerard has replied. was sent from place. whereas the 2nd electronic mail was sent from Reg’s work topographic point. Than being an credence here it’s a refusal of an offer besides have the qualities of a counter offer. partially but non wholly.

Counter offer is an offer made in response to a old offer by the other party during dialogues for a concluding contract. The Brogden V metropolitan railroad is authority to state where the counter offer is accepted. the contract is made on the footings of the counter offer and non on the footings of the original offer. The noticeable another point here is the topographic point last e-mail came from. As all the e-mails came from Reg’s place. merely the concluding electronic mail came from his work topographic point doing the uncertainties on the cogency of his old electronic mails. With this point besides we can travel up to the inquiry of whether Reg read Gerard’s replied offer electronic mail before. Harmonizing to instantaneous communicating regulation that an credence took consequence where it was received. non where it was sent ( Entores Ltd v. Miles far East corporation ) . So nevertheless. it can be offer or a counter offer but it surely sure that it is sum to a expiration of a old offer. The offer is still available for credence.

The 2nd inquiry was. would you reply differ. had Gerard replied that he would pay ?800 for the Cadmiums from the 80s and 90s merely? No it does non do a immense difference. As it comes to the portion of Gerard’s offer. nevertheless after an invitation to handle there’s merely a topographic point for an offer or a expiration of the invitation which meant to the dialogue procedure. So decidedly this besides sum to an offer as the old statement.

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