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contact law

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Introduction

Advise the parties on their legal position. Has a contract come into being and with whom? On Monday at 10.00am Bernice makes an offer of �4,500 and they both agree that if Bernice doesn't hear from Andr�a before 9.00pm then the offer has been accepted. In the mean time Andr�a is out and Curtis makes an offer which is more than Bernice's. Then David also makes an offer by posting a letter which he misaddresses and arrives late. Andrea accepts Bernice's offer but then when she gets in and sees Curtis's offer she tells Bernice to ignore it. As she wishes to go for Curtis offer. In this scenario I will be discussing offer, acceptance postal rules and instantaneous communications as these are the legal issues raised within this scenario. Bernice seems to have made a clear offer of �4,500 and this offers seems to be communicated to Andrea on Monday morning at 10.00am when Bernice says that she will assume that the offered been accepted unless she hers from Andrea by 9.00pm that evening. Curtis's offer of �4,750 is only communicated on Monday 11:00am however it is communicated to Andrea at 9.30pm when she gets home and sees the note which does seem to be an acceptance of the offer. On Monday 2.15pm David posted a letter to Andrea accepting the offer which she had received on Friday to buy the caravan for �4,750. ...read more.

Middle

They would only be able to do so if the contract had been formed in England. The question at issue was where the contract was formed. Lord Wilberforce said: "Since 1955 the use of Telex communication has been greatly expanded, and there are many different on it. The senders and recipients may not be the principals to the considering contract. They may be servants or agents with limited authority. The message may not reach, or be intended to reach, the designated recipient immediately: messages may be sent out of office hours, or at night with the intention, or on the assumption that they will be read at a later time. There may be some error or default at the recipient's end which prevents receipt at the time contemplated and believed in by the sender. The message may have been sent and/or received through machines operated by third persons. And many other variants may occur. No universal rule can cover all such cases; they must be resolved by reference to the intentions of the parties, by sound business practice and in some cases by a judgement where the risks should lie." They accepted the principle in Entores v Miles Far East Co where in the case of instantaneous communication, which included telex, the formation occurs in the place where the acceptance is received. ...read more.

Conclusion

Plaintiffs brought action against Defendant for breach of contract and failure to deliver. Therefore the issue here is that the acceptance has already taken place. Lindley J determined a withdrawal of offer to have no effect until the other party was deemed to have been notified of the withdrawal. A revocation uncommunicated is no revocation at all. Since no authority was given in fact to the defendants by the plaintiffs to notify of withdrawal of offer by post, the revocation sent by Defendants of 8th October is not to be considered as communicated to Plaintiffs before the date of receipt by Plaintiffs, 20th October. The withdrawal has no effect, and therefore a binding contract was entered into on 11th October when Plaintiffs accepted the offer. After discussing the law above the parties should be advised that a contract has come into being at �4500. The contract was made between Andrea and Bernice. Andrea would have preferred to make a contract for �4,750 with Curtis however she had already sent a letter of acceptance to Bernice before she saw the other two offers. As Andrea had already sent the letter of acceptance she cannot revoke the offer as the postal rules state: - the acceptance is communicated as soon as the letter of acceptance is posted and remains effective even if the letter is then lost, delayed or destroyed. ?? ?? ?? ?? Zara Iqbal ...read more.

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