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

Contract Law Assignment

Extracts from this document...

Introduction

Contract Law Assignment On Monday Samantha offered to sell her oboe to Penny for �1,000. Penny replied "I will buy it if I can raise the money". Samantha promised that she would not sell the oboe to anyone else before Saturday, and added that Penny could collect the oboe at any time before noon on Saturday. On Wednesday, Penny phoned and left a message with Samantha's daughter, Anne, saying that she had got the money and would collect the oboe on Saturday morning about 10.30am. Anne forgot to tell her mother about the phone call. On Thursday morning Samantha was entertaining friends and discussing the sale of her oboe. Gillian was interested and offered to buy the oboe for �1,300. Samantha was delighted with the offer. Samantha posted a letter later that day to Penny saying that she could no longer have the oboe. Pat, the Postman, delivered the letter to the wrong address, and Penny, who was disabled, did not receive the letter. She hired a taxi on Saturday morning to collect the oboe. Advise Samantha and Penny of their legal rights. The problem regarding Samantha and Penny is a very complicated one. To fully answer it, to advise the two on their legal rights, we must consider various different legal issues. We must pay particular attention to offer and acceptance, and to a lesser degree, consideration. ...read more.

Middle

The letter was then posted, but unfortunately was delivered to the wrong address by the postman and Penny never received the letter. Could this letter of revocation be covered by the postal rule? The rule that regards letters of acceptance, which states that the acceptance is binding from when the letter is posted, not when or if received. As Penny had received no letter of revocation, and therefore had no reason to be suspicious that there was anything going awry with proceedings, as she was disabled she had hired a taxi on Saturday morning to take her to Samantha's home to collect the oboe at 10.30am. She had also placed the phone call and had no idea that the message had not been passed on. When Penny initially accepted Samantha's offer to buy her oboe, she used the words ' I will buy it if I can raise the money'. This constitutes a conditional acceptance, i.e. the transaction could not take place unless a condition was met. Conditional acceptance is not binding in a contract, therefore in the first instance no binding acceptance was given so no contract was formed. The second time Penny tried to contact Samantha regarding the purchase, she made a phone call. She did not however speak to Samantha herself but Samantha's daughter Anne. If Penny had spoken to Samantha, then this would have acted as final agreement, or acceptance, and the contract would have been binding. ...read more.

Conclusion

Although neither of these are extravagant gestures, the fact that she has taken a burden upon herself show that the consideration has been made.3 Therefore, it is not valid for Samantha to revoke the offer during the time allowed for Penny to accept the offer made. Up until now, we can see that there has been no acceptance by Penny, or revocation of the offer made by Samantha. Therefore, in reality, there is no contract, but we can say that, as neither of the parties knows that their end of the contract has fallen through, and take into account the consideration by Penny, there is a contract inferred by the conduct of the two parties involved. In addition, the contract could still be accepted and held by Penny on the morning of collection. To summarise Penny's situation, she has not presently accepted the offer but still had the chance to do so. In Samantha's case, her attempts to revoke her offer to accept Gillian's were invalid. The reason for this is that it is not possible to revoke a 'firm offer' during the allotted time when consideration has been shown. Therefore, Samantha must reject Gillian's offer to buy the oboe and comply with the inevitable acceptance from Penny on the Saturday morning when she arrived to collect the oboe. 1 Denning L.J. Entores Ltd v Miles Far East Corporation, [1955] 2 All ER 493 2 Byrne & Co. v Leon Van Tienhoven & Co. [1880] 5 CPD 344 3 See case of Thomas v Thomas [1842] 2 QB ; 114 ER 330 ...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)

    concluded11 Auction Sales * General Rule ' the offer is made bidder and accepted by the auctioneer when he signifies his acceptance in customary manner (fall of hammer)S.57(2) Sale of Goods Act 1979 * There is two situation of auction; - reserved : the highest bidder must be higher price

  2. Marked by a teacher

    In this Assignment I am going to describe the requirements of a valid contract ...

    3 star(s)

    All parties must have the intention that the agreement will be legally binding. The law divides agreements into two groups, social and domestic agreements and business agreements. Capacity This is the legal ability for someone to enter into a contract.

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

    Brace v Calder [1895] 2 QB 253. The claimant was employed for a term of 2 years by a partnership. Five months later the partnership was dissolved by the retirement of two members. Technically the claimant was wrongfully dismissed i.e.

  2. Entores ltd V. Miles Far East Corperation [1955] 2 QB 327(CA)

    If for any reason the offeror did not get an acceptance, hence there is no contract. However, if the offeree taps out the message again and the offeror receives it then there is a contract. Overall Lord Birkett and Lord Parker have agreed with the decision above.

  1. 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.

  2. Contract Law, Scenario Assignment

    Brown’s did decide to accept the offer well within in the time limit specified by Khan’s. However, they didn’t communicate this acceptance to Khan’s who on Wednesday the 7th, agreed a deal with another company, Steel Supplies to provide steel for £17500.

  1. Aspects of the law affecting construction projects.

    Therefore it will grant delegated powers to other people or bodies to supply the detailed legislation. This is called delegated legislation; it has all the power of Parliament as it could only be made by the transfer from Parliament to the designated persons or bodies.

  2. Aspects of Contract and Business Law Case Studies

    and placed his bid? If yes then he would have entered into a binding contract with Ben. But he was not there when the contract was made between Ben and Mrs Hamilton and therefore he has a duty to perform his part of the contract by selling at the writing desk to Mrs Hamilton.

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