• 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)

    * Stereotype situation distinction is decided by evidence adduced and not by intention The Mere Supply Of Information * Before an offer is made, the preliminary stage of communication which involves response to a request for information and other similar request.

  2. Invitation To Treat

    of the decedent is distributed according to a formula fixed by law. In other words, if you don't make a Will, you don't have any say about how your property will be distributed. Such proceedings could cost a lot of money and could create legal problems that might have been avoided by making a Will.

  1. Postal Acceptance Rule

    Even if it is possible to regard the post office as his agent to carry the letter (which still seems unreal, with a prepaid letter) there is surely no agency to receive it and so conclude a contract on its behalf, which is what would be needed to justify the rule".

  2. I have been asked to advise a client on considering contracting with a building ...

    Also it was not an offer, which could be accepted since it was offered to the whole world." (Common law 1 BPP) The outcome of the case was that there was an offer as it was specified of what to do and it was an offer to the public can be accepted so as to form a contract.

  1. Offer and Acceptance

    There is no contract at the moment. If he wishes to make a contract, he must wait till the aircraft is gone and then shout back his acceptance so that I can hear what he says. Not until I have his answer am I bound."

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

    On appeal, the advertisement was held to be an 'invitation to treat', since it was necessary to protect the advertiser from liability in Contract should demand for the advertised goods exceed supply.3 As a result, the appellant's criminal conviction was quashed.

  1. In advising Bennys position of the interest over the said property (the flat), it ...

    Without evidential burden of ultimately express common intention, he can only rely on "party's conduct" in reliance of detriment suffered. Actually, he used up his saving to pay for redecoration of bathroom, but this kind of contribution shall be regarded as "non-financial contribution".

  2. Assess the problems that arise through terminating and offer

    Another method of termination that has problems is revocation, especially the communication side, because an offer can be revoked at any time up until that offer is accepted, but if the revocation is not communicated then the offer has not been revoked.

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