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


Extracts from this document...


ELEMENTS OF CONTRACT - OFFER AND ACCEPTANCE. QUESTION: Bob owns a stamp shop in Muncaster High Street. On Monday he places an item in the advertisement column of the Muncaster Evening Gazette. 'Utopian Penny Red Stamp, one for only, �750 or nearest offer'. Late that day, Alan, a stamp collector, telephones Bob and says 'The Utopian Red for sale, I'll take it for �700'. And Bob replies, 'I cannot accept less than �725 but I will not sell it to anyone else before Saturday. Let me have a reply by Friday if you want it'. 'That is kind of you. Remind me to buy you a drink when I see you'. On Wednesday Alan telephones Bob and leaves a message on his answering machine stating 'I accept your offer'. Unfortunately Bob's infant son later presses a button on the machine which erases the message before Bob listen to it. Later that day Bob sells the stamp to Cerdic for �750. ...read more.


By looking into the language of the advertisement which �750 or nearest offer, one could safely concluded that the advertisement by Bob would to an invitation to treat. An invitation to treat is a preliminary stage of an agreement, where one party seek to ascertain if the other is willing to enter into legally binding contract; Fisher v Bell. When later that day Alan a stamp collected telephoned Bob and said that he would take it for �700. This would amount to an offer. An offer is a final and unqualified assent to all the terms of the offer as per Carlill v Carbolic Smoke Ball. As on the facts Alan's statement was certain and shows his willingness to be bound immediately. Subsequent when Bob replied by saying that he would not accept anything less than �725. Even though the replied by Bob couched like an acceptance but it is not. This would amount to a counter offer, because he have introduce new terms to the original offer. ...read more.


Cerdic's aged mother who came to know from Cerdic's 9 year old son that the father have acquired the stamp from the High Street Dealer. Since this is question of fact and it is up to the courts to verify the effectiveness of the third revocation i.e. whether Alan can rely on third party revocation. If this is possible than Alan's act of posting the letter to Bob would have no effect because the revocation has taken place earlier. On the other hand if the third party revocation is not reasonable in circumstances then when Alan post a letter to Bob confirming the message there would be an acceptance by applying the postal rule i.e. the effectiveness of the acceptance is when the letter is posted and not when it was received. Since the revocation by Bob in writing required actual communication which is by Friday but the acceptance of Alan has taken place earlier as such one could safely conclude there is an agreement between Alan and Bob if the third party revocation is not reasonable. ...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)

    * So, it is just a supply of information and not an offer Harvey v Facey 1893 The plaintiff telegraph the defendant "Will you sell the Bumper Hall Pen?Telegraph the lower cash price". The defendant telegraphed in reply, "Lowest price for Bumper Pen Hall �900".

  2. Postal Acceptance Rule

    (Source: Simone W B Hill (2001) "E-mail contracts -When is the contract formed"Journal of Law and Information Science, Vol 12, No1, pp 46-56) Although the business convenience justification has been the subject of criticism on the basis that it unfairly favours the interests of the offeree, Thesiger LJ in the

  1. Contract Law - offer and acceptance.

    the only tender submitted by Trimex would be the �300, as the tender for �5000 was conditional and effectively rejected Astonia's offer.

  2. Offer and Acceptance

    Music 2003 where a record company produced an album from music sent to them by Confetti. It was then held too late for Confetti to revoke their offer. The beginning and completion of the production of the album was considered to be the acceptance of the offer and therefore the revocation of the offer was too late.


    and so justifying the repudiation." If the parties do intend that any breach of a term will give the innocent party the right to repudiate then this should be clearly stated. It may not be enough simply to use the words: "this is a condition of the contract."


    McGhee and Skilton had both set out to commit a deliberate breach of contract by approaching the customers of their former employers in complete defiance of the restriction to which they both voluntarily agreed to and signed. The inner house of the Court of Session in McGhee and English Court of Appeal in Skilton's found in favour of the employers.

  1. Invitation To Treat

    If the offer is restricted then only the people to whom it is addressed may accept it; but if the offer is made to the public at large, it can be accepted by anyone (Carlill v CarbolicSmoke Ball Co (1893)).

  2. Write a critical evaluation of the elements of any two property offences

    Another problem with the property offence is the mens rea for the Theft Act 1968 which is formed under section 2 and 6. Dishonesty under section 2 has not been given a clear definition; it merely states what is not deemed as dishonest, for instance under section 2 (1) (a)

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