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

Offer and acceptance when forming a contract.

Extracts from this document...


Aman, a car dealer, has a number of conversations with clients in his showroom. Bert states that he wishes to buy a particular Candida car on display in the showroom at �10,000, but Aman says that he could not sell it for less than �10,500. Aman says no more to Bert, but Bert assumes that the car is his for �10,500. Aman offers to sell a Delissimo car to Emma for �15,00 and says that she can let him know by Friday if she wants the car. On Thursday afternoon Fred pays Aman �20,000 for the same car. Emma sends Aman an e-mail on Friday to say that she wants the car. Aman makes an offer to sell a Grandino car, priced �22,000 to Harry who says he will think about it. Harry posts a letter to Aman the same day to say that he does want the car. Later that day Harry changes his mind and sends a fax message to Aman to say that he no longer wishes to buy the car after all. ...read more.


In the case and uncle told his nephew that if he (the uncle) did not hear from him then he could assume his nephews horse was his for an agreed price. The uncle did not hear from his nephew and the horse was then sold at auction and the uncle tried to sue the auctioneer but it was held that mental acceptance is not acceptance and that acceptance must be communicated. Aman has made a valid offer to Emma to sell the car for �15,000 and the offer is open until Friday. Emma sends Aman an e-mail on Friday to let him know. As the acceptance was sent via instantaneous communication the postal rule does not apply, however the rules regarding acceptance via e-mail are indistinct as there have been no precedents set in case law as yet regarding instantaneous communication. Many English courts are likely to apply to e-mails, the principle set in Brinkibons case regarding faxes that any fax received out of office hours is deemed to be received the next working day. ...read more.


Bert's offer of �10,000 was revoked via counter offer from Aman. However it is debatable whether Aman was making a counter offer for Bert to accept or merely refusing the first offer. In any case Bert had not communicated his intent to buy the car there has been no contract formed between the two. Silence is not acceptance. In Emma's situation the lapse of time has lead to the revocation of the offer as the precedent of Ramsgate Hotel CO V Montefiore. Fred has made a valid contract with Aman, as the offer to Emma was revoked. both parties have provided offer, acceptance and consideration in the form of �20k for car and so the contract is valid, Emma has no legal claim on the car. However, if Emma had accepted the offer by post or phone then it would be a different state of affairs as Aman made the offer to her first. Harry has made a valid contract with Aman as he accepted via post. However, as previously stated it would be debatable in court. WORD COUNT: 824 words Kate Fairclough A2 Law (Linda McGavin-Black) ...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

    "The requirement of consideration is an unnecessary complication in the formation of contracts."

    4 star(s)

    Basically, the principle of promissory estoppels in the UK have yet to be capable of being established as a cause of action, and is merely for defensive purposes only, as stated in the case of Combe v Combe [1951]. Probably this is to say that the doctrine of promissory estoppels was not to create a new cause of action.

  2. Marked by a teacher

    Contract Law - Offer And Acceptance

    3 star(s)

    * Thus the different between offer and ITT is depends on the exclusive criterion of intention * Wording is not conclusive in each matter. E.g; - 'offer' Harvela Investment v Royal Trust Co. of Canada (C.I) 1985, Spencer v Harding,Clifton v Harding - 'acceptance' Bigg v Boyd Gibbons Ltd 1971

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

    These damages are often said to represent "expectation loss". An alternative principle is to put the plaintiff into the position he would have been in if the contract had never been made, by compensating him for expenses incurred (or other loss incurred)


    has made a statement that "Utopian Penny Red Stamp" one for �750 or nearest offer..

  1. Invitation To Treat

    Actual communication of the acceptance never took place and acceptance could not be imposed on the nephew on the basis of his silence. Accordingly, as acceptance has been communicated in this question by paying the money to buy the product.

  2. Dealing with problems of offer and acceptance.

    The normal status of counter-offers is that they extinguish the original offer, so the original offer cannot be accepted i.e. Hyde v Wrench (1840)11. However, the document must be construed carefully, as intermediate communications have, on occasion, been construed as mere enquiries and not counter offers, as shown in the case of Stevenson v McLean (1880)

  1. Outline the basic rule of the law of contract regarding the effective revocation of ...

    Thus, the counter offer destroyed the original offer. Thirdly, an offer may be terminated by a lapse of time. An offer which states that the offer is open to a specific period of time cannot be accepted after the date.

  2. According to law, a "contract" is, generally speaking, a legally binding bargain between parties, ...

    Notice is usually needed to be given to the other party, depending on who is terminating the contract and for what reason. There are different reasons for the termination of an employment contract, such as, misconduct (justifying instant dismissal), redundancy or resignation. Payment owing is required on termination of employment.

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