...Aminah was an advertisement in a newspaper, which referred to a ‘special offer while stocks last’ by a local supermarket of a well-known brand of vacuum cleaners. The offer price was stated to be RM100 per unit. The usual price of such vacuum cleaners was around RM300 per unit. Aminah rushed to the supermarket, chose one of the vacuum cleaners and took it to the payment counter. The salesperson at the counter told her that the supermarket had increased the price of the vacuum cleaner and that the new price was RM320. Aminah refused to buy the vacuum cleaner at that price. She seeks your advice whether the supermarket is contractually bound to sell the vacuum cleaner to her at the advertised price of RM100. (a) In order for a valid agreement to arise there must be a proposal (offer) and an acceptance of that offer. A proposal (offer) is said to be made when one person signifi es to another his willingness to do, or abstain from doing anything, with a view of obtaining the assent of that other to the act or abstinence: s.2(a) Contracts Act 1950. An offer must be distinguished from an invitation to treat. While an offer may be accepted giving rise to an agreement, an invitation to treat is only an offer to receive an offer, i.e. it is an invitation to another to make an offer. Examples of invitations to treat are advertisements and displays in shop windows. A case in point is Pharmaceutical Society of Great Britain v Boots Cash Chemist Ltd (1953). In this case the defendants...
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...a car dealer placed an advertisement in a weekly motor sports magazine offering to sell a triumph (Tr6)for $10,000. RULE OF LAW: Rule of law for an Offer - is a statement of willingness of a contract on specified terms if accepted, it shall become a binding contract. Argument/Counter Argument: firstly, the advertisement was public to the eyes of citizens and it will attract interested outsiders, because of an invitation to treat. Whereas, Chris acceptance to the advertisement leads to a binding contract with the offeror, Tom. After he saw advertisement he immediately posted an acceptance letter with $8000 cash, alongside his office fax number. The offer was accepted when chris sent the letter to tom accepting the offer. Both parties communicated by fax, when the letter itself was sent to the offeror in which Tom read it and accepting the check. -According to the case of Carlill vs Carbolic Smokeball, the defendant manufactured a "Smokeball" to prevent flu and whoever used it over a specified period of time, each will receive $100. Carlill saw the advertisement, which states an invitation to treat. She used the Smokeball under her specified terms and still caught the flu. She went to collect her $100 benefit but the company refuses to pay her. When the claim was made they said there was no contract. It was held that an offer made to the world at larg, can become a contract with those who fulfilled the conditions. Based on the conditions, Chris performed within the conditions...
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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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...Facts: Plaintiff-appellants (Normile) made an offer on the defendant (Miller) seller’s home. Defendant responded with a counter-offer. The plaintiff never accepted or rejected the counter-offer and believed the house was still on the market. The next day the defendant sold the house to the plaintiff-appellee (Segal). The plaintiff-appellants are suing for specific performance, as did the plantiff-appllee, in separate actions which were consolidated by the lower court. The counter-offer by the defendant did not constitute a binding and enforceable contract. The defendant then properly revoked the counter-offer by selling the property to plaintiff-appellee and thus gave plaintiff-appellants notice of that revocation. Procedural history: Appealed from Court of Appeals for North Carolina. Currently at Supreme Court of North Carolina. Issue: Was there a clear offer and acceptance between Normile and Miller? Holding: No, Miller’s counteroffer was a revoke of Normile’s offer since it was never accepted by both parties and was not a mirror image contract. Rule of Law: An offer is a promise to do something or to refrain from doing some specific thing. An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it. An acceptance is an offeree’s expression of assent or agreement to the terms of an offer. An acceptance must be unconditional, unequivocal...
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...can be legally bound in the event if the offeree revert and accept to the original offer after they have changed the terms of the original offer and bounce it back for the offeror to accept. In order to determine whether an offeror can be legally bound after offeree changes the terms of the original offer and then revert back to original offer, we need to consider the rule of acceptance. According to s.7(a) of Contracts Act 1950, “In order to convert a proposal into a promise the acceptance must be absolute and unqualified.” In other words, an offeree must agree with all terms introduced by the offeror. In the case if an offeree only accepts some but not all of the terms introduced by the offeror and add new terms of the original offer, it is treated as the rejection of the original proposal, unless the proposal prescribes the manner in which it is to be accepted. As stated in the s 7(b) of Contracts Act1950, acceptance must be expressed in some usual and reasonable manner. In the case if the offeree diverges from the prescribed form, the offeror must not keep silent. If he does so and fails to insist upon the prescribed manner, he is considered as having accepted the acceptance in the modified manner. The term of implied rejection is appropriate when an offeree accepts a proposal on new terms not contained in the proposal, which is also called as counter offer. The consequence is the original offer ceases to exist. However, according to s.2(h) of the Contracts Act 1950, contract...
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...3 SMART STEPS FOR DIRECT QUESTIONS 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: ...
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...about the deal and complained to invalidate the contract and kept the land back. However the guardian of Arthur’s will win this trial. Because the guardian could proof Arthur was insane. That’s why Katrina might give back the land and the Arthur might pay back $5000 to Katrina. There was a similar case was in 1989; Che Som bet Yip v Maha Pte Ltd. In this case, the third plaintiff who is mentally unsound executive pledged to banks, the court held that, in this case, the bank should have known of his disability, so the mortgage was shelved. b) Yes, Kristin has the right not to sell to lan. This case is counter offer. Counter offer kills the first offer. The offeror is Kristin and Lan is offeree in the first offer but Lan didn’t agree about $5000 land and bargain to $4000, the offeror and offeree are exchanged the places. The offeree (Lan) didn’t agree about the offeror’s offer. So Kristin qualified that didn’t sell the land to Lan. Moreover, there were not acceptance between them and also the contract. As the cite case of Hyde v Wrench 1840 is similar with this case. In Hyde v Wrench case, the facts were Wrench is willing to sell his estate Hyde 1200...
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...each. Bash Cars plc responded to Al’s letter stating that they accepted his offer but that they would only pay £45 per filter. Al wrote back to Bash Cars plc stating that he would supply the filters but only at the original price of £50. When Al’s letter arrived, the purchasing director of Bash Cars plc did not notice the alteration of the price and ordered the 1,000 filters from Al, which he supplied. Required: Analyse the situation from the perspective of contract law and in particular advise Al what price he is entitled to claim from Bash Cars plc. Sample Answer: Legal issues: invitation to treat, offers, counter offers and breach of contract (must be identidied) An offer is a promise to be bound on particular terms, and it must be capable of acceptance. The person who makes the offer is the offeror; the person who receives the offer is the offeree. The offer sets out the terms upon which the offeror is willing to enter into contractual relations with the offeree. An offer may, through acceptance by the offeree, result in a legally enforceable contract. However, it is important to distinguish what the law will treat as an offer from other statements which will not form the basis of an enforceable contract. The original advertisement in the magazine was not an offer; it was merely an invitation to treat. As such it is not an offer to sell but merely an invitation to others to make offers. The point of this is that the person...
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...of offer by post is effective as against Mr. James. The issue in the given situation is whether Mr. Robert's revocation of offer by post is effective or not as against Mr. James. Section 2(h) of the Contract Act 1950 defines that contract is an agreement enforceable by law. In order for an agreement to be enforceable by law, it must consist of six essential elements which are offer, acceptance, consideration, intention to create legal relation, capacity and certainty. The revocation of proposal is define in Section5(1) Contracts Act as a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. In order for the revocation of the proposal to be effective, it must be communicated by the proposer to the other party before it accepts. Communication of revocation can be done by the proposer or his agent acting on his behalf. In the event of acceptance by post or telegram, the acceptance is complete as against the proposer upon posting or delivery of the telegram. In the case of Byrne v. Tienhoven, defendant posted letter of offer to the plaintiff on 1 October. On 8 October, defendant posted a letter revoking the offer. On 11 October, plaintiff received the letter of offer and sent acceptance by telegram on the same day. Only on 20 October did the defendant's letter of revocation was received by the plaintiff. The court held that there is a contract between the parties. Revocation of the offer was...
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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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...Case 1 Issue This problem addresses the issue of agreement, whether there is a valid contract or the offer may be terminated. In order to the contract being valid and enforceable, there is a need for the conduct of an offer and an acceptance. Rule For an offer to be valid, it contains some rules, including lapse of time. When an offer is made, it does not last forever. An offer stated to open for a specific period, lapse if the there is no acceptance within that time. If there is no set time for acceptance is stipulated in the offer, the implication of lapse will be exercised after a reasonable time, depending on the facts and circumstances in each case. (see Ballas v Theophilos (No2) (1957) 98 CLR 193; [1957] HAC 90). If the acceptance is come after the offer has lapsed, the acceptance will not be valid. Application In this case, Chan offers to sell his car to David and David asked for some time to think about it. It can be noticed here that David gets back to Chan after long time thinking, which caused the offer lapse. Moreover, there is no binding options about specific period is stipulated to keep the offer open for offeree. The acceptance is not valid because the offer has been terminated due to the lapse of time. Conclusion There is no legally binding contract which has been formed between Chan and David. Case 2 Issue This problem indicates the issue about breach of contract. However, breach of contract only occurs when a legal contract has been formed. Therefore, a second...
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...two elements – one offer and the other acceptance. Thus offer is the foundation of any agreement. “When one person signifies to another his willingness – 1 to do or to abstain from doing anything, 2 with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.” The person who makes an offer is called “Offeror” or “ Promisor” and the person to whom the offer is made is called the Offeree” or “Promisee”. Example Mr. A says to Mr. B, “Will you purchase my car for Rs.1,00,000?” In this case, Mr. A is making an offer to Mr. B. Here A is the offeror and B is the offeree. Essentials elements of an offer:- (1) There must be two parties. (2) The offer must be communicated to the offeree. (3) The offer must show the willingness of offeror. Mere telling the plan is not offer. (4) The offer must be made with a view to obtaining the assent of the offeree. (5) A statement made jokingly does not amount to an offer. (6) An offer may involve a positive act or abstinence by the offeree. (7) Mere expression of willingness does not constitute an offer. A tells B’ that be desires to marry by the end of 2008, if does not constitute an offer of marriage by A’ to B’ A further adds will you marry me. Then it become offer. Legal Rules as to valid offer:- 1. Offer must be communicated to the offeree: The offer is completed only when it has been communicated to the offeree. Until the offer is communicated, it...
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...HND in Business and Finance Unit Name: Aspects of Contract And Negligence Assessors: Abu Zaman Student: Sulaiman Adebakin According to the case of Carlill v Carbolic smoke ball co [1893] Q.B 256 Alice has made what can be defined as offer. An offer is an ‘an expression of a willingness to be bound by the terms of the offer should the offer be accepted’. The claimant has advertised publicly products she is selling and the conditions that need to be met in order for acceptance to be valid. This shows an objective intention to enter into a binding agreement. Sincerity was shown in the Carlill case as the defendant had deposited £1000 with the alliance bank. Therefore one could say Wendy has shown her sincere intention by stating her contact details in the advert. Bowen LJ allows us to be aware within the Carlil case that it is possible for an offer to ‘be made to the world at large’ as the claimant has done. Conversely an invitation to treat will allow room for negotiation such as in the case of Fisher v Bell [1953] 1 All ER 482, CA. Within this case the defendant was said to be offering flick knives for sale. This was a statutory offence under the Restriction of offensive weapons Act 1959. The divisional court came to this decision that no offence had been committed as there was no obligation for the shopkeeper to sell the item neither was the customer obliged to buy it. This approach was later taken in Partridge v Crittenden [1968] 2 All ER 421, HC QBD; although the appellants...
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...and finding a replacement is near impossible. Peter’s decision to look into accepting a job at another firm could affect the profitability of RSH because it will affect their overall ratings. Because of this predicament, Stephen is debating whether to offer a counter offer to Peter in attempt to get him to stay. Another option Stephen could consider is promoting Peter’s assistant Rina into Peter’s position even though Stephen doesn’t feel that Rina is fully qualified for the job she is looking to fill. Possible Alternatives There are a few alternatives that are available for Stephen to choose from. Stephen could choose to issue a counter offer to Peter in an attempt to keep him at the firm. Stephen could also give Rina, Peter’s assistant, the job opportunity with the hope that she will grow into the position and be profitable for the company. Stephen also has the option to look for employee’s outside of the organization to hire for the position. Each of these alternatives has the option to prove profitable for the firm. Pros and Cons of Alternatives The alternatives above should be critically evaluated so that the most effective choice for the organization will be made. In the scenario where Peter is offered a counter offer, it is important to look into all of the reasons why he was considering switching positions. If a pay increase is the only countermeasure offered by RSH, Peter would most likely not choose to stay with them because all of his reasons for leaving...
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...OFFER AND ACCEPTANCE. PREPARED BY-ANUM SHAHID OFFER An offer is a definite promise to be bound on specific terms.It cannot be vague and can be offer to one person, to specific class of person or to the whole world. CARLILL V CARBOLIC SMOKE BALL CO . FACTS- Th manufacturers of a patent medicine is published an advertisement by which they undertook tp pay pounds reward....to any person who contracts influenza after having used the smoke balls three times daily for 2 weeks. The advertisemnet added that 1000 pounds had been deposited at a bank showing our sincerity in this matter The claimant read the advertisement , purchased the smoke ball and used it as disrected. She contracted influenza and claimed her 100 pounds rewrad. In their defence the manufacturers argued against this a) The offer was so vague that it could not form basis of contract, no time limit was defined b) It was not an offer to be accepted as it was made to whole world. DECISION- The court disagreed a) Smoke ball must protct the user during period of use- This offer was not vague b) The offer can be made to whole world in reward cases. Vague Statment case. GUNTHING V LYNN 1831 FACTS- the offeror offered to pay a further sum for a horse if it was lucky. DECISION- The offer was too vague and no contract could be formed. AN INVITATION TO TREAT. Definition. An indication that a person is prepared to...
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