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Offers Last Forever Unless Expressly Revoked. Critically Evaluate This Statement as It Relates to the Formation of Contracts.

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An offer is where one party namely the offeror outlines the terms and conditions under which he is willing to be legally bound and the offeree is the person to whom the offer is made. It may be contested that an offer never last forever and there are several situations where an offer can be terminate and these can range from lapse of reasonable time, failure of a pre-condition to counter offer amongst others. If an offer is not accepted then there can be no legal contract between both parties

An offer may be terminated when reasonable time has lapsed as was in the case of Ramsgate Victoria Hotel v Montefore (1866) where the defendant applied for shares in the hotel company. He heard nothing and then after 5 months he received a letter of acceptance. By this time he had decided that he did not want the shares. The courts held that the lapse of time was so great that the offer to buy the shares had lapsed. This case shows that an offer doesnot last forever.

Where an offer was made subject to a pre-condition and it was found that the condition was not what had been expressed in the offer, the offeree can refuse the offer as expressed in the case Financing Ltd v Stimson (1962). In this case, the defendant signed an "offer to buy" a car on hire-purchase from a finance company. The document had been given to him by the car dealer. The document had a clause which said that the agreement would not be binding until it had been accepted by the finance company. The defendant paid the first instalment, insured the car and took it away. Being unhappy with its performance, he returned the car to the dealer and cancelled his insurance. The car was stolen from the dealers and damaged. Not knowing of this the finance company then accepted the written offer which had been sent to them. The defendant refused to pay

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