• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Advise the parties of their contractual liabilities.

Extracts from this document...

Introduction

On Sunday, Andrew saw in his local paper, the Daily Bungle, that Basil was offering to sell a set of 1 penny black stamps for �850. The advertisement stated that, "Will sell to the first person to come forward with the money." On Monday, Andrew telephoned Basil and after leaving his contact details left a message on Basil's answering machine saying, "Would you accept �800 for the stamps?" On Tuesday, Andrew who was afraid that Basil might sell the stamps elsewhere posted a letter to Basil in which Andrew stated, "I agree to buy the stamps which you offered for sale in the Daily Bungle for �850." This letter was delayed in the post and was not delivered till Friday. On Wednesday, Basil returned from a business trip and played back the message on the answering machine. He then posted a letter to Andrew stating, "I agree that the stamps are yours for �800." However, this letter was delayed in the post and did not arrive until the following Saturday. On Friday, when Andrew's letter arrived, Basil sent an e-mail to Andrew saying that the stamps were his for �850. ...read more.

Middle

Andrews phone call to Basil stating 'Would you accept �800 for the stamps?" would seem to be or merely a request to supply further information regarding the stamps. Alternatively, if Andrew's statement was indeed a counter offer then taking into account the judgment in Hyde v Wrench would apply. The facts of the case were that Mr. Wrench had offered to sell a plot of land �1000 to Mr. Hyde, he in turn offered to purchase it for �900, to which Mr. Wrench refused. Later on Mr. Hyde then accepted his earlier offer of �1000. Mr Wrench refused to sell and was taken to court on a breach of contract. It was held that as Mr Hyde had countered Mr Wrench's earlier offer, that offer was now invalid and not binding on Mr. Wrench to accept. Therefore in the above scenario if Andrew tries to accept Basil's earlier offer he might not be able to do so. The 'postal rule' as laid down in the judgment in Adams v Lindsell states that any acceptance sent by post will deemed to been have accepted the moment it is put into post. ...read more.

Conclusion

Only then will an acceptance be valid. The facts of the case were that The plaintiffs in London made an offer by Telex to the defendants in Holland. The defendant's acceptance was received on the plaintiffs' Telex machine in London. The plaintiffs sought leave to serve notice of a writ on the defendants claiming damages for breach of contract. Service out of the jurisdiction is allowed to enforce a contract made within the jurisdiction. It was held that the contract is only complete when the acceptance is received by the offeror: and the contract is made at the place where the acceptance is received. Furthermore, Lord Denning stated that "If a man shouts an offer to a man across a river but the reply is not heard because of a plane flying overhead, there is no contract. The offeree must wait and then shout back his acceptance so that the offeror can hear it." Accordingly, as soon as Andrew reads the email sent by Basil accepting Andrew's offer of �850 the contract is formed. In accordance with the above judgments and according to the facts, Andrew and Basil have entered into a valid contract for the sale of a set of penny black stamps for �850. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Law of Contract section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Law of Contract essays

  1. Marked by a teacher

    Contract Law - Offer And Acceptance

    3 star(s)

    At 1.34pm the plaintiff sent a telegram accepting the defendant's offer, but at 1.25pm the defendant had sent a telegram: 'Sold iron to third party' arriving at 1.46pm. The plaintiff sued the defendant for breach of contract and the defendant argued that the plaintiff's telegram was a counter-offer so the plaintiff's second telegram could not be an acceptance.

  2. Contract law - Advise Sarah - The first thing to ascertain is whether the ...

    Acceptance would be effective on completion of the act specified in the advertisement. An offer can be defined as an expression of willingness to contract made with the intention that it shall become binding on the offeror as soon as it is accepted by the offeree.6 It is clear by

  1. Four ways in which a contract may be discharged.

    The chair collapsed and he was injured. When he claimed damages, the Council tried to rely on an exclusion clause that was printed on the ticket. Thornton v Shoe Lane Parking [1971] 2 QB 16. The plaintiff drove his car into the defendant's car park on the outside of which was a notice stating the charges and that all cars were parked at the owner's risk.

  2. Offer and Acceptance

    This is shown in the case Bloom v American Swiss Watch Co. (1915) where information was given which led to the arrest of thieves who had broken into a man's premises. The person whom gave the information was without knowledge of the � 500 reward being offered by the man.

  1. Invitation To Treat

    The essential thing to emphasise about an offer is that, once it is accepted by the offeree, a legally binding contract has been entered into, and failure to perform what has been promised will result in breach of contract. An offer may be made to a particular person or to a group of people or to the world at large.

  2. DIFFEERENT AREAS OF CONTRACT LAW

    So when she was informed that her offer was rejected there was no contract formed. With the Germans not responding it was that they were not interested in her offer and it was no longer available. Qualified acceptance of the offer does not result in the creation of a contract

  1. A contract is formed between two or more parties.

    Secondly, the communication of acceptance by means which are "virtually instantaneous" is distinguishable and must "stand on a different footing"3. Several examples of circumstances are given by Lord Justice Denning in his ruling. He gives the telex example in which it is clear that if the acceptance is not communicated

  2. Outline the basic rule of the law of contract regarding the effective revocation of ...

    In response, the plaintiff's agent immediately called on the defendant and made an offer of �950 for which the defendant wished to have a few days to consider. On June 27, the defendant wrote to say that he could not accept this offer.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work