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Alternative dispute resolution pros and cons
Alternative dispute resolution pros and cons
Alternative dispute resolution pros and cons
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Legal Case Study Chronological order of events
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1. Xavier wrote to YY stating, “I hear you have a Nokia 7600 mobile
for sale. I would be interested in buying it for $2,000 if it is in
good condition.”
2. YY wrote back to Xavier, “I agree to sell the phone to you but
there are still a few things which need doing to it before it is fully
usable.” However, the letter was lost in the post.
3. Xavier wrote a week later stating, “As I have not heard from you I
assume the price was not enough. Will you accept $3,000?”
4. YY replied by e-mail to Xavier’s e-mail address in her office
saying, “I accept the offer.” Unfortunately, Xavier was away and did
not check her e-mails and three weeks later returned to check the
e-mails and found the message from YY. Meanwhile, YY having heard
nothing sold the phone to Tommy for $2,500.
Advise
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Synopsis
l To advise Xavier, needed to consider whether or not a contract had
been formed with YY.
l In order to determine whether there are contract formed, it is
necessary to conduct the traditional analysis of offer and acceptance.
l Was Xavier’s written statement, e.g. letter to YY to be an offer or
an invitation to treat [Gibson v. Manchester City Council (1979) and
Storer v. Manchester City Council (1974)] or a preliminary statement
as to price [Clifton v. Palumbo (1944)] or request information [Harvey
v. Facey (1893)]?
...
... middle of paper ...
... offer in the
same via written statement/letter. Instead of communication by post,
YY used the simultaneous method of communication by e-mail, so YY’s
acceptance would be ineffective, unless it actually reached Xavier
(offeror) [Entores v. Miles Far East Corporation (1955)].
l YY as offeree used e-mail to reply his acceptance, YY should require
to take additional step to ensure Xavier actually received his
message, i.e. by making phone call directly to Xavier. Because postal
rule did not apply to this kind of simultaneous method by e-mail to
communicate the offer.
l Under this circumstance, there is no communication and the exception
did not apply (by postal rule), YY has not validly accepted Xavier’s
offer. On balance, no contract arises in this situation and YY is at
liberty to sell the mobile phone to Tommy.