...OFFER AND ACCEPTANCE OFFER When one party expresses interest to buy or sell an asset from another party. The offering price is often the highest the buyer will pay to purchase an asset, and the lowest that the seller will accept. The person that makes offer is called "offeror or promiser".The person to whom offer is made is called "offeree". Offer can also be called a "Proposal". EXAMPLE: 1) Ali offers to sell his watch to Ashraf , here Ali is making an offer to Ashraf. 2) When purchasing a house, prospective buyers will make an offer to the seller, and will often list the highest price he or she is willing to pay. However, if another prospective buyer enters the scene and a bidding war ensues, each buyer will continue to bid until his or her maximum price level is attained OFFER and its types : Express Offer: An offer may be made by express words, spoken or written. Suchan offer is known as an express offer. Implied Offer: An offer may also be implied from the conduct of the parties or thecircumstances of the case. This is known as implied offer.For example, An offer by the Transport Co. to carry passengers for a certain fare. Specific Offer: When an offer is made to a definite person, it is called specific offer. General Offer: When an offer is made to the world at large, it is called as generaloffer. A mere making of an offer does not...
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...(offeree) for acceptance, and which becomes legally enforceable if accepted by the offeree. A explicit proposal to contract which, if accepted, completes the contract and binds both the person that made the offer and the person accepting the offer to the terms of the contract. http://www.duhaime.org/LegalDictionary/O/Offer.aspx Terms and conditions under which an offer is made, such as quantity, price, discounts, delivery date, shipping costs http://www.businessdictionary.com/definition/offer.html Acceptance of an offer is the final and unequivocal expression of assent to another's offer to contract. http://www.duhaime.org/LegalDictionary/A/Acceptance.aspx "Acceptance means the signification by the offeree of his willingness to enter into a contract with the offeror on the terms offered to him by the latter. Without an acceptance there can be no contract ...." "In the ordinary case ... there is a manifestation of willingness to be bound by one party followed by a manifestation of an assent by the other by words or conduct, generally and usefully called offer and acceptance." "Each of (these) definitions contemplates a willingness, either in words or by conduct, to be bound by the terms of the offer. But each definition also entails a manifestation, or a signification, or an indication of such willingness." Book 9(1) of Halsbury's Laws of England, 4th Edition (2007) “termination of offer”, and can happen in a number of ways, for a variety of reasons. Termination of offer is different...
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...Rules of offer and acceptance in a contract Offer and acceptance are elements required for the formation of a legally binding contract: the expression of an offer to contract on certain terms by one person (the "offeror") to another person (the "offeree"), and an indication by the offeree of its acceptance of those terms. The other elements traditionally required for a legally binding contract are (i) consideration and (ii) an intention to create legal relations. Offer and acceptance analysis is a traditional approach in contract law. The offer and acceptance formula, developed in the 19th century, identifies a moment of formation when the parties are of one mind. ------------------------------------------------- Offer[edit] Treitel defines an offer as "an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed", the "offeree".[1] An offer is a statement of the terms on which the offeror is willing to be bound. It is the present contractual intent to be bound by a contract with definite and certain terms communicated to the offeree. The expression of an offer may take different forms, such as a letter, newspaper advertisement, fax, email and even conduct, as long as it communicates the basis on which the offeror is prepared to contract. Whether the two parties have reached agreement on the terms or whether a valid offer has been made is an issue which...
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...Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. An offer is an indication by one person to another of their willingness to contract on certain terms without further negotiations. A contract is then formed if there is express or implied agreement. A contract is said to come into existence when acceptance of an offer has been communicated to the offeror by the offeree. One party, the offeror, makes an offer which once accepted by another party, the offeree, creates a binding contract. The Key concepts in relation to offer and acceptance include the distinction between an offer and an invitation to treat, The case of Carlill v Carbolic Smoke ball co. is...
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...about offer and acceptance of negotiating an agreement. The issue is that whether Samuel had accepted the wireless router when he opened the parcel of the wireless router. Legal principles An offer is a definite promise made by the offeror to the offeree who is a specific person or some specific persons with the intention of the offeror to be bound if certain specified terms are accepted. Invitation to treat is that a person invites the other parties to make an offer. A person making an invitation to treat is just inviting offer rather than making offer. Where a person accepts the terms of the invitation, he makes an offer but there is still no contract. The maker of the invitation is free to accept or reject the offer. An acceptance is an unconditional expression of the offeree’s assent to the terms of the offer and thus an agreement is made. Acceptance cannot be deemed or assumed. Silence is not an acceptance. Acceptance is effective and valid only from the moment it is actually communicated to the offeror by the offeree or the latter’s duly authorized agent. Once the acceptance is communicated, an agreement is concluded. (Powell v. Lee (1908)) Counter offer is the rejection by the offeree of the terms of offer. If offeree accepts the offer but adds certain conditions with the terms & conditions of the initial offer, it does not constitute an effective acceptance. In fact, it is a counter offer. The effect of a counter offer is the rejection of the original offer and making...
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...Distinguish between acceptance and counter offer. STEP 1 INTRODUCTION • First, you have to define the keywords in the question. Define acceptance and counter offer. STEP 2 GENERAL PRINCIPLES OF LAW • Explain the relevant general rules ie sections and cases, the most appropriate to your question. • Explain section 2(b) of the Contracts Act 1950 that relates to what acceptance is. • Explain section 3 of Contracts Act 1950 which tell you on how to communicate an acceptance. • Discuss section 7(a) of Contracts Act 1950 on acceptance must be absolute and unqualified. • The above sections are the major relevant sections for your answer. • Next, you have to discuss on the cases. • Give the full facts and held by Court if possible. If not, try to provide brief idea on the decided cases that come across your mind. A simple illustration will help you to have replacement marks by the lecturers. • As for the above question, the most relevant cases are Felthouse v Bindley and Carlill v Carbolic Smoke Ball. • You need to distinguish acceptance and counter offer. • You need to explain the effect of counter offer as has been decided in the case of Hyde V Wrench. The effect is new offer may exist. Original offer is rejected. STEP 3 CONCLUSION • The final stage will be a brief summary on what have you provided at step 1 and step 2. For example: “As a conclusion, acceptance must be absolute...
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...with the presence of (Offer, Acceptance, Intention and consideration) four essential elements. Essential Elements are as under; 1. Offer(proposal) It is starting point from where an agreement gets life formally which ultimately may take the shape of a legally binding contract. Offer means the formal expression of intention or willingness of one party to another to do or to refrain from doing an act in order to obtaining the assent of the other party to such act or omission. When one party signifies his willingness to other party in order to take consent of that party regarding any dealing, the party expressing such willingness is said to make an offer and he is called the offeror and the person to whom it is made is called the offeree . So it is clear that, the offer must be communicated to the other party; Offer can be revoked at any time prior to acceptance. In this point we have to keep in mind that some kinds of transactions involve a preliminary negotiation in which one party invite the other to make an offer. Such a stage is called invitation to treat. Such primary negotiations are the way to reach a stage to make an offer. It is now well settled that negotiations to enter into a contract can amount to an invitation to treat but not an offer. 2. Acceptance Once offer has accepted it becomes contract. When the person to whom an offer is made signifies his assent thereto the offer is said to be accepted. Thus the essence of the acceptance is the assent or consent...
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...Part A: Question 1 Step 1: The legal issue of this case is to establish if there are legal intentions and also consideration that is required for contract. Step 2: An agreement is a compilation of acceptance and offer that both parties are able to agree on. An agreement is not able to form without the two components. An offer must be concise to the extent where it may be easily be approached to the other party to contract, which make the offer a legally binding document. An offer must be completed thoroughly and promissory, only then it can be considered an offer. A completed offer is defined as both party had come to an agreement and both parties understand the term and condition of the offer. The other feature of a completed offer is that the offer must be promissory, which is to say that if one of the both parties are unwilling to live up to the promise the promise is said to be illusory because it does not show that there are any changes in the context of the contract. In addition illusory promise cannot be enforced if there are no changes in the context of the contract(Lambiris 2010 pg 38). In the case of Placer Development Ltd v Commonwealth(1969)121 CLR 353, a subsidy would be paid to companies who imported timber into the country which is Australia by the commonwealth government. The Government did pay the importers the subsidy for a period of time but stopped for an unknown reason. Placer had imported a sum of timber and wants the government to pay...
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...Leecher claim for the prize money? 2. Principles (i) Offer An offer is a legally binding promise made by one party (the offeror) to another party (the offeree). Once offers have been accepted, offeror cannot revoke it. The advertisement Darebin City Council posted is an offer can be made to the world at large and is able to be accepted by anybody in the word. In other word, this advertisement is also a unilateral contract is a contract where the offeror makes an offer to the offeree in return for an act. Followings are examples of a unilateral contract which courts agreed. * Advertisement that amount to an offer made to the whole world at large; * Offers of rewards; (The major precedent is the R v Clarke case ) * Acceptance. (ii) Acceptance of the offer: The act of acceptance will occur when the offeree performs acts that are consistent with the terms of offer. Only when both parties have given their mutual consent does the law consider a binding legal contract to have been formed. Performance of an act (unilateral contract) is a method of acceptance. Importantly, silence and ignorance of the offer are not included in acceptance. In this case, Leecher’s ignorance of the offer cannot be included in an acceptance so there is no contract between him and Darebin City Council. 3. Application (i) Wacko and Darebin contract: There was an offer made by Darebin Council and this offer...
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...Principle 1: People have categories of judgment by which they evaluate persuasive positions. Within the latitude of acceptance is contained all the positions on a particular topic that we find acceptable. Within this latitude there is one special position called the “anchor.” This is the single position that a person finds the most acceptable of all. It may be the most extreme position (“absolutely essential”), but the anchor could also be a milder position (“highly probable”). At some border point, a person will no longer accept some position, but will not reject it either. This is the latitude of non-commitment. This contains things about which there is no real opinion. As the discussion moves out of the latitude of non-commitment, there...
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...contain the three main parts that is, agreement and legal intention, consideration. Firstly, whether it is an agreement only if there is a valid offer followed by a valid acceptance and communicated to offeree, which can made in writing, orally or conduct (Carlill v Carbolic Smoke Ball Company). Secondly, whether there is a legal contract if the parties intend their agreement to be legally binding, it bases on the presumption that in commercial or business agreements parties did intend to create legal relation (Edwards v Skywards Ltd [1964] 1 WLR 349). Thirdly, whether the party pays something for value (consideration) in return to have the promise from another party (Cooulls v Bagot's Executor and Trustee Co Ltd (1967) 119 CLR 460). Application: Ms. Square talked about the development of IGA supermarket with Mr. Power on December 31.In January, Ms. Square receives a letter from Mr. Power, which explaining his "committed intention" to lease a space for Ms. Square to develop a IGA supermarket. He wrote he will prepare the formal contracts to rent for the development space they have spoken and the rental to be agreed by his lawyer in 3 months. Ms. Square wrote a later back immediately and agreed the offer. Based on the action between Ms. Square and Mr. Power, she has agreed the offer, which made by Mr. Power. On the other hand, this offer is a business agreement between them. Although they didn't mention about the legal intention, they are suppose that both of them did intend...
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...Offers may be terminated in any one of the following ways: Revocation of the offer by the offeror; counteroffer by offeree; rejection of offer by offeree; lapse of time; death or disability of either party; or performance of the contract becomes illegal after the offer is made. The general rule is that the revocation is effective only when it is made known to the offeree. Until it is communicated to the offeree, directly or indirectly, the offeree has reason to believe that there still is an offer that may be accepted. The offeree may rely on this belief. If the offeror seeks to revoke the offer, but the offeree accepts the offer before notice of the revocation, a valid contract is created. A conditional acceptance is a counteroffer. For example, if Jones accepts the $10,000.00 price, but adds a term by stating that new tires must be put on the car, this is a conditional acceptance and therefore a counteroffer. A rejection terminates an offer. A rejection is an offeree’s communication that an offer is unacceptable. When an offer states that it will be open until a particular date, the offer terminates on that date if it has not yet been accepted. This is particularly clear when the offeror declares that the offer shall be void after the expiration of a specific time. If the time passes, and the offeree attempts to accept the offer, this is in effect a counteroffer from the offeree and can be accepted or rejected by the offeror. If the offer does not specify...
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...and conclude. The whole paper is based on the English jurisdiction. When the parties are located at a distance from each other and are contracting through postal communication it is difficult to decide when the contract is concluded. There are two possibilities in such a case: 1. The contract is concluded when the acceptance is posted. 2. The contract is concluded when the acceptance is received. A similar situation arose in Adams v. Lindsell. On September 2, 1817, the defendants sent a letter offering to sell wool to the plaintiffs. The letter reached the plaintiffs on 5th of the same month. The plaintiffs posted the acceptance on the same evening but it reached the defendants on September 9. The defendants waited till September 8 and then sold it to some other party. They were sued for the breach of contract. The defendants argued that there should have been no binding contract unless and until the plaintiff’s answer is received by them and, therefore, they were free to sell the wool to some other party on September 8. But the court said: If it were so, no contract could ever be completed by post. For if the defendants were not bound by their offer when accepted by the plaintiffs till the answer was received, then the plaintiffs ought not to be bound till after they had received the notification that the defendants had received their answer and assented to it. And, so it might go ad infinitum (endlessly). So it was held that the contract is formed when the letter...
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...For example, suppose A makes an offer to B on January 1; A then decides to revoke the offer on January 2, and puts a letter in the mail to B revoking the offer; however, B puts a letter accepting the offer in the mail on January 3, and does not receive A’s revokation letter until January 4. Because B sent his acceptance before receiving A’s revocation, the mailbox rule dictates that B’s acceptance is effective. A will therefore be bound to the contract, and can no longer revoke the offer. Suppose, on the other hand, that A makes an offer to B on January 1, and B decides to reject the offer on January 2, and puts a letter in the mail to A rejecting the offer; however, the next day B changes his mind and sends A a fax accepting the offer. In this situation, whichever communication A receives first will govern. Under the mailbox rule, performance is a means of acceptance. If A orders 1000 blue coathangers, and B ships them out, that shipment is considered to be a conveyance of acceptance of A’s offer to buy the coathangers. Defective performance is also an acceptance, unless accompanied by an explanation. For example, if A orders 1000 blue coathangers, and B mistakenly ships 1000 red coathangers, this is still an acceptance of the contract. However, if B ships the red coathangers with a note that they sent these because they had run out of blue coathangers, this is not an acceptance, but rather an accommodation, which is a form of counter-offer. With the advent of modern technology...
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...apartment. The advertisement of Alex is an offer, not an invitation to treat. In Partridge v Crittenden [1968] , the newspaper advertisement without details was held to be an invitation to treat, which is not an offer. However under the case of Carlill v Carbolic Smoke Ball Co [1983], an advertisement may be an offer if it is very clear. From the advertisement of Alex, he posted a detailed advertisement on TV, which include the price of the apartment and the contact number. Therefore the advertisement is a definite promise and it is unilateral in nature, it will be an offer, not an invitation to treat. The advertisement of Alex is an offer; therefore the suggestion of Charles on 9thSeptember 2011 is a counter offer. Hyde v Wrench [1840] stats that any qualification by the offeree when he or she purports to accept will be treated as a counter offer. A counter offer acts as a refusal of the original offer and creates a new offer that the original offeror may accept or reject. When Charles suggested a qualification to Alex, which reduced the price to HK$30 Million and rejected the offer that he has received from the advertisement. Charles was making a counter offer to Alex. The reply of Alex is also a counter offer. Alex rejected the offer of HK30 Million from Charles and suggests a qualification, which is not less than HK$32.8 Million and won’t sell to anyone until 11th September 2011. 11thSeptember 2011 is the lapse of time of the offer. Ramsgate Victoria Hotel v Montefiore...
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