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Law of Contract. With reference to case law, identify and discuss whether the common law rules relating to acceptance of offers provide certainty for businesses.

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Introduction

Law of Contract QUESTION: With reference to case law, identify and discuss whether the common law rules relating to acceptance of offers provide certainty for businesses. The offer can be considered as ?a clear statement of the terms on which one party (the offeror) is prepared to do business with another party (the offeree)?. (Adams, 2012) An offer usually can be a unilateral offer (a promise in return for a promise) or a bilateral offer (a promise in return for an act). (Adams, 2012) In other words, a unilateral offer is an offer made by one party and a bilateral offer is an agreement between two. And an offer can be accepted is based on the agreement of the contracting parties. In order to have the force of law, such acceptance must satisfy the regulations below. Firstly, the offeree must flower the offer as contracted and not trying to introduce new term. ...read more.

Middle

Acceptance can be made by fully performing the act and would be deemed to be valid if all the precise details were followed which in the case of Carlill required the offeree to take the smoke ball according to instructions to stop the flu. However there can be no acceptance of the offer without the knowledge of the offer. An offer can be revocable if the offeree known nothing to the offer: Gibbons v Proctor (1891). (Santiago, 2009) In a bilateral offer, if the offer needs to be accepted, both parties? promises must to be performed, such as an agreement to sell a case of books to a school which has agreed to buy the book at a certain price. As a whole, an acceptance only becomes effective when it is received by the offeror. However, in some situations where the bilateral offer is made by the post or any instantaneous methods this rule is different. ...read more.

Conclusion

In conclusion, as can be seen, whether it is a unilateral offer or a bilateral offer, the law provides certainty for businesses when the parties making an offer in any situations. But no matter to make which kind of offer, the offer must be in accordance with the legally binding offer. And the parties must be careful if the offer made by them has any legal loopholes. Reference: Adams, A. (2012). Law for Business Students(7th Edition). England: Pearson. Castle, A. (2009, May 17). Offer and Acceptance. Retrieved May 9, 2012, from Legal Norms: http://www.legalnorms.com/offer-and-acceptance.php Doyle, A. (2007, October 28). Bilateral and Unilateral Offers. Retrieved May 9, 2012, from Placefornotes: http://placefornotes.blogspot.co.uk/2007/10/bilateral-and-unilateral-offers.html Doyle, J. (2009, May 27). What Is the Difference Between a Bilateral Offer & a Unilateral Offer in Business? Retrieved May 9, 2012, from Small Business: http://smallbusiness.chron.com/difference-between-bilateral-offer-unilateral-offer-business-33129.html Santiago, J. (2009, April 23). Unilateral Contracts. Retrieved May 9, 2012, from What's Your Problem? : http://justin-santiago.blogspot.co.uk/2009/04/unilateral-contracts.html Page of ...read more.

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