In respect of each prospective buyer of the Fiat, the task is to determine whether a binding contract has been formed with Brenda. The key issue is whether there was valid offer and acceptance, one of the three fundamental pillars of a contract (the other two, intention and consideration, are obviously present in the scenario and outside this discussion). The following paragraphs will discuss this requirement in the context of Andrew, David and Claire.
Andrew
The initial offer of £50
The first stage of Andrew’s interaction with Brenda was to email an offer of £50 for the Fiat, after Brenda had mistakenly advertised it on her website at a fraction of the intended price. In certain circumstances, an advertisement to the world at large can
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There is no request for information – such as an enquiry as to the terms of delivery – operating to qualify the suggested arrangement. It is in fact a response in a form purporting to be acceptance, which in fact alters the original terms. In such circumstances, the counter-offer cannot constitute acceptance of the original offer and will result in agreement only if Andrew accepts the new terms. The further effect of the counter-offer is to function in the same way as a rejection, to destroy the original offer and so prevent the original offeree from changing her mind. This was demonstrated in Hyde v Wrench, in which an offeree who had rejected an initial offer to buy land from an offeror for £1,000, and had a subsequent offer of £950 rejected, was prevented from accepting the initial offer of …show more content…
Claire responded to the invitation to treat on Brenda’s website with a valid offer, which Brenda immediately accepted, the fact of which was communicated to Claire by email. The acceptance of the offer was unqualified, since there was no suggestion of new terms such as a different price or a proviso that, for example, delivery should be made in a certain way. This had the effect of rendering Brenda’s email as an acceptance, rather than as a counter-offer or a request for information. This coincidence of offer and acceptance means that a valid agreement was formed between the two parties, which in turn created a legally binding
a) Given that Eva and Maria entered a written contract supported by a legal document for a price agreed on $75,000 for rendering decorating services, there is consideration. Both parties agree upon a price and this contract verifies validity.
Our decision was based on determining if there was contract formed and if the terms of said contract were performed by both parties. We found that Abigail placed an advertisement with the intent to lead readers to believe that she was selling “purebred toy breed puppies” for $100, “quoted for immediate acceptance”. Alex responded to Abigail’s advertisement and accepted her offer by submitting the required $100 payment to the P.O. Box, as stipulated in the advertisement, and inquired about when he could pick up
This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller.
Walker, Takem’s has the statutory law of contracts in his favor. In a contract, the seller and the purchaser have certain rights and obligations. Four basics must be met for a contract to be created (Chrisman, 2014). First, the offer has to be made. In the case at hand, the door-to-door salesperson made an offer of a computer to Ms. Walker. Second, the consideration has to be accepted. Ms. Walker accepted the offer to purchase a computer. The third step is capacity. The purchaser must be legally capable of entering into a contract; minors and the mentally incompetent are excluded in this case. Takem’s has given Ms. Walker the computer in exchange for her payments on her store account. Finally, the intention to enter into a contract has to be present. Ms. Walker signed a bill of sale, a security agreement, and a negotiable promissory note- which is an unconditional promise to pay a certain sum of money at a certain time in the future. Though Takem’s has the advantage to combat her claims, Tommy needs to ensure that his salespeople have not made any false statements or misrepresentations to Ms. Walker as this could have legal implications for the store and against the contract (Vaccaro, 1987). Ms. Walker is legally bound by the contract she agreed to in exchange for the computer; however if there has been any misrepresentations or false statements Ms. Walker may be able, with legal assistance, to call the contract into question
Common law dictates that the acceptance must be a mirror image of the offer, regardless of what the difference may be. The Pride v Lewis case is an example of the mirror image rule in action. Pride owned a house which they listed for sale but found a renter in the meantime. Lewis made an offer on the house with a closing date of May 15th, and the Prides accepted but changed the closing date to June 1st and proceeded to evict their tenant and take the house off the market. When the Lewises never showed up to closing, the Prides relisted the house but were never able to find another tenant and ended up selling the house for $15,000 less than the Lewis’s had offered. The Prides sued the Lewises for breach of contract but lost due to the mirror image rule. The different closing date in the acceptance effectively rejected the Lewises offer and no contract was formed. The UCC is not as stringent on the acceptance, it utilizes a “battle of forms” as dictated in section 2-207 which checks for a substantive difference between the offer and the acceptance, such as price, goods ordered, delivery date, and other similar matters. It could also allow a term from the acceptance to be considered a valid part of the contract unless the offer expressly limited acceptance, the new terms would substantively alter the offer with differences such as price, or the offeror objects to the new terms within a reasonable time
The four elements of a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the “consideration of each party,” is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is “contractual capacity,” which may or may not be fulfilled since we do not know Sam 's age or whether
This principle is called as "mirror image rule." Significantly, common law counteroffers that would been considered rejections and/or counteroffers are converted into acceptances under the UCC. To the UCC, it recognizes the existence of a contract even if the acceptance contains additional or different terms from those of the offer. This occurs because the acceptance reveals intent to contract that not expressly conditions the original offeror to agree to additional or different
An acceptance is “a final and ineligible expression of assent to the terms of an offer”. Acceptance of an offer can be tenacious through the following guidelines: (1) the acceptance must be communicated with the intention of both parties to enter a mutual contract; however, the offer may be revoked prior to acceptance, (2) the offer can only accept the initial terms and can only be accepted by the intended offeree, (3) the offeree must accept the terms through a concrete method if authoritatively mandated by offeror. [Contracts Law: Offer and Acceptance]. Pine Trees failed to mention/incorporate their disclaimer of consequential damages in the initial terms, engendering a counter offer. (Aguilar Manufacturing v. Richfield)
-If person receives the offer accept itbut wishes to add condition of his own, that reply is a qualified acceptance. It does not conclude a contract. it amount to a rejection of the offer. It creates a counter offer(Black)
Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a vehicle.
1.1 Explain at least four points of differentiations between contract and agreement with the help of examples.
an offer to the offeree (Sam). In the case of Harvey v Facey [1893] AC 552, Harvey asked whether would Facey sell him the Bumper Hall Pen and telegraph him the lowest cash price-answer paid. Facey replied that the lowest price was £900 and then Harvey agreed to buy for this amount. But Facey refused to sell later. The court held that the offer of lowest acceptable price did not constitute an offer to sell but an invitation to treat. In our case, what Mary said to Sam was also an invitation to treat that has no legally binding effect. When one person makes an invitation to treat, he or she is just inviting offers instead of making ones. Examples of invitations to treat include advertisements in newspapers, shop displays, and auctions, etc. In the case of Pharmaceutical Society of Great Britain v Boots Cash Chemist
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
The issue in this case is whether there is a legally binding contract between Roland and Bernie. The things that needs to be considered is whether there is an agreement between Roland and Bernie. If there is an offer and acceptance, then there is an existence of agreement. According to Section 2(a) of the Contract Act 1950, offer can be defines as when one person implies his/her willingness to another in order to acquire their consent. (Abdullah et al, 2011) The person who make the offer is known as ‘offeror’ or ‘promisor’. (Lee and Detta, 2009) An offer can be made in the method of orally, by conduct, writing or by the mixture of these forms. An offer must require an effective communication with offeree. The formation of contract when offeree accepted the proposal. (Dass, 2005)
Using the 4 step process, consider whether the element of agreement required for the formation of legally enforceable contract has been satisfied in the above scenario involving Isabella and Sienna.