Contract Law Case Study

This scenario had led to issues surrounding offer and acceptance. Advising Homer will come to a conclusion whether he has or has not entered a legally binding contract with Christine and/or Louis. The following issues that will be encountered feature; the postal rule, effective communication, reasonable amount of time for a contract to lapse, revocation of an offer and finally the question whether it will be invitation to treat or an offer to enter a contract.

Before any contract is formed there are aspects that must be fulfilled. Firstly there must be an offer, defined in the case of Harvey v Facey [1893] as “a proposition made by one party to the other in terms that are fixed or specific, with the intention that the offeror will be legally bound if

The quote made by Christine could be viewed as either an offer or an invitation to treat. Invitation to treat is defined as “mere declaration of willingness to enter into negotiations… and cannot be accepted so as to form a legally binding contract” . Christine informs that the service to Homer would cost £400, in which he replies ‘he is happy to accept on that basis’ which can be viewed as the offer and acceptance between the parties. However this can also be seen as mere negotiations as he asked how much the service would be beforehand. A representation of this seen in the case of Gibson V Manchester City Council [1979] in which the House of Lords stated that “giving the purchase price was merely one step in the negotiations for a contract”. Using this case the courts would come to the conclusion that the phone conversation would only amount to mere negotiations between them. During the phone call, Christine informs Homer that for evidence purposes the contract must be concluded through a specific method represented in Tinn v Hoffman [1873]. Homer would need to sign a form for evidence purposes to conclude the