Answer 1- ILAC (Offer and Acceptance)
Issues(s):
Is there a valid and legally binding contract between David Driver and Woolly World Ltd.?
Law: Contract Law – offer and acceptance
To create a binding contract, the offeror should make an offer including all the terms of offer and the second party; the offeree should accept the contract along with the terms and conditions of the contract.
The intention to treat is a statement or an action that encourages or entices others to consider the offer. The offeree hints only willingness to consider the offer, which may lead to a contract. An offer needs to be distinguished from an invitation to treat, because an invitation to treat will not necessarily lead to a contract but an offer will lead
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The doctrine is explained in the case of Carlill v Carbolic Smokeball Co [1893], where the offeror is making an intention to come into the legal a legal bounding by making an offer.
A counter offer is an offer made by the offeree in response to an offer originally made by the offeror. This would cancel the original offer made by the offeror and the original offer will no longer be available for the offeree to accept. This doctrine is explained in the case of Hyde v Wrench (1840) 49 ER 132, a counter offer is an expression or an implied rejection of an offer. If the replacement offer is accepted, then the contract will be considered as legally binding.
The acceptance is a sign, action or a statement from the offeree to the offeror showing him the intention to be legally bound by the terms of the offer. There are three conditions related to the acceptance, i.e. the acceptance must be communicated to the offeree by the time and the mode stated by the offeror, the acceptance must be certain and the terms of acceptance must be the same as the terms of the original offer made by the
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However, they would give a discount to David and they can supply the seat covers at $50.00 each. If David was happy with the price that they were offering, and then David should email them back as soon as possible because they had a limited stock they had other buyers who were interested in buying the same. This was a counter offer made by Woolly World Ltd to David Driver; this counter offer would cancel the original offer made by David Driver and the original offer made by David Driver no longer exists to accept. If David Driver accepts the counter offer made by Woolly World Ltd then the contract will come into
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.
Whether oral or written, the contract must manifest a mutual intent to be bound expressed in a manner capable of being understood, and include a definite offer, unconditional acceptance and consideration.” (Express Contract 2016) The above definition is a much clearer explanation with key elements outlined; 1. mutual intent, 2, expressed in a manner capable of being understood, 3. definite offer, 4. unconditional acceptance and 5. Consideration.
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
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 area of law that is required in order to form a legally enforceable contract is agreement.
The case presented is that of Sam Stevens who resides in an apartment. He has been working on an alarm system that makes barking sounds to scare off intruders, and has made a verbal agreement with a chain store to ship them 1,000 units. He had verbally told his landlord, Quinn, about his new invention and Quinn wished him luck. However, he recently received an eviction notice for the violation of his lease due to the fact that his new invention was too loud and interrupting the covenant of quiet of enjoyment of the neighbors and for conducting business from his apartment unit.
E.G. Lorenzen, Causa and Consideration in the Law of Contracts (1919). Faculty Scholarship Series. Paper 4560.
Four requirements for a valid contract that is legally binding are: agreement, consideration, contractual capacity, and legality. Any contract
The English contract Offer and Acceptance General principles There are three basic essentials to the creation of a contract which will be recognised and enforced by the courts. These are: contractual intention, agreement and consideration. The Definition of an Offer. This is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the offeror as soon as the person to whom it is addressed accepts it. An offer can be made to one person or a group of persons, or to the world at large.
One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015)
An invitation to treat is an invitation to form a proposal, and thus there is no legal consequences. (Nabi Baksh and Arjunan, 2005) An offer must be differentiated from an invitation to treat. (Lee and Detta, 2009) In this question, Roland was making an invitation to treat when he displayed the price tag on the car vehicle. Actually, he is inviting customers to form an offer to him. When the customers consent the price and discussed with Roland, both of them actually are making the offer. In this situation, it is depends on whether Roland want accept or not. Thus, Bernie is making an offer when she consent to buy the car stated as RM10 000. Bernie implies her willingness to buy the car marked RM10 000 with the expectation of Roland will sell the car to her at this price. Obviously, Bernie is the offeror. A contract will come into being when the people who forms the invitation treat accepts the offer of the customer, for instance Roland accept the offe...
“The case of Carlill V carbolic Smokeball Company is considered a land mark in the English Law of contracts.”
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
A valid contract is an agreement including promises made between two or more parties with an intention of certain legal rights and legal responsibility that are enforceable. For there to be a contract – that must contain four essential elements- offer, acceptance, intention to create legal relations and consideration.
In English Law consideration is one of the three main areas of an enforceable contract. It may be defined as an act, forbearance or promise made by a single party that constitutes the price for which the promise of another, is bought. In simple terms, the basic understanding of consideration may be seen as a ‘give and take’ tactic between two parties.