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(A).Introduction
In the legal scholarship, a contract is defined as a legally binding agreement Treitel in the Law of Contracts defines contract as:
‘an agreement giving rise to obligations obligations which are enforced enforced or recognised recognised by law’ and continues writing that: ‘The ‘The first first requ requisi isite te of a cont contra ract ct is that that the the part parties ies shou should ld have have reach reach agreement1’.
(B). Legal Issues
The main question at hand is whether whether a contract contract between ar !upermar"et !upermar"et
and !heila has been concluded, in the circumstances of the scenario $. In order to reach to a conc conclu lusio sion, n, one one shou should ld cons consid ider er the the sub% sub%is issue suess e&am e&amin ined ed belo below, w, name name
invitation to treat, counter%offer, acceptance by silence, death of the offeror and th postal rule.
(B.1) Offer – Distinction from invitation to treat
'n offer is an e&pression e&pression of willingness willingness to contract on certain certain terms, mad
with the intention that it shall become binding upon acceptance by the person to
whom it is addressed(. 'n effective offer must consist of a definite promise to b
bound, declaring the offeror’s readiness to underta"e an obligation upon specifi cond condit itio ions ns are are met met). ' stat statem emen entt that that lac" lac"ss such such inte intent nt is a prel prelim imin in
Master your semester with Scribd Read Free Foron 30this Days Sign, up to vote title offers+. offers or to engage in negotiations with a sale in mind an +offer to receive & The New York Times Useful Not useful y far the most recognised instance of the occurrence of invitation to treat i
communication referred as ‘an invitation to treat’6 i.e. a request to others to ma" *
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in the case of goods displayed in shop windows. In Fisher v Bell it was ruled that th
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It has been argued that this rule is inconvenient nowadays since in most types o
shops no negotiation ta"es place between the shop"eeper and the customer and the goods are to be sold at the prices shown. The distinction between offer and invitation to treat is clarified by the case
Gibson v Manchester City Council -. In the aforesaid case the /ouse of 3ords wa
faced with a case whose facts were essentially identical to those in the issue i
question as far as !heila’s letter of 1st !eptember is concerned. In that case th
wording of the owner’s letter to the prospective buyer stated that the owner ‘may be
prepared’ to sell the property to the prospective purchaser. The /ouse of 3ords ruled that the letter was not an offer, but rather, an invitation to treat.
Alication of t!e La"
Therefore, in the specific e&amined case, the sign ‘for sale’ is in no sense an
offer at law and should be regarded as an invitation to treat. 'dditionally, the seller’s
letter of 1st !eptember stating that he is willing to sell at the indicated pr You're Reading a Preview constitutes, on the basis of the language used, namely @ ‘may be prepared’ %, merely a Unlock full access with a free trial.
negotiating statement, an invitation to treat, rather than an offer since the letter wa
Free Trial not deemed to be sufficiently Download definite toWith amount to an offer. !ince an invitation to
treat can only be followed by an offer, !heila’s letter to buy the motorhome fo
A1),=== is an offer. onsequently, at this stage no contract was concluded between !heila and the seller, as reasonably was argued by the latter in his letter posted in 1= !eptember.
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Special offer for students: Only $4.99/month. Buring the course of negotiations the response to an offer may be for the offere
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and the price to be A-= per lorry used and another suggesting a total price of A-,*8= for the Sheet Music
whole wor", regardless of the number of lorries. Thus, the question for the ourt was whethe
both offers made were open to acceptance or the later had superseded and revo"ed the firs
offer. The ourt of 'ppeal held that the second offer had replaced the first in a simila way to a counter%offer.
Alication of t!e La"
A1-,=== for the motorhome should be treated as a new offer, the only one available to
acceptance, having the actual effect of a counter%offer as her second quotation neatl indicates her intention to withdraw her first offer.
(B.5) Accetance 2 silence
'n acceptance is an unconditional assent to the terms proposed in the offer
's a general rule an acceptance in order to be effective should be communicated by
You're Reading a Preview any means to the offeror 1#. 6hen acceptance has been manifested with a positive act
full access with a freecompleted. trial. there is e&ternal evidence thatUnlock a contract has been /owever, where only
the passive conduct of the offeree lies, the question to be considered is if silence can Download With Free Trial be construed as acceptance
It is a recogniJed rule of law that silence alone does not constitute acceptanc
of the offer. This principle was established at Felthouse v. Brindley case13 where th
ourt held that there was no binding contract between the parties since there was no
communication of acceptance1(. In relation to unilateral contracts, when the offere
Master your semester with Scribd Read Free Foron 30this Days Sign up to vote title e&pressly or impliedly authoriJes silence as acceptance, e&pressing his intention to & The Newwaive York Times useful Useful Notcontract the requirement of communication of acceptance, a binding should b Special offer for students: Only $4.99/month.
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formed1). 9urthermore, it has been argued that silence by the offeree will constitute
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in view of what might be called an Pumbrella contractP between the parties 18. /owever
application of this rule might arise conceptual difficulties of assent in the absence o
ongoing contractual relationships. Thus, the traditional view that silence alone wil
not suffice continues to be adopted in Cudicial decisions at least in cases of bilatera contracts1*.
Alication of t!e La"
Ta"ing all the above into consideration, in the case at hand, !heila’s statemen
of ‘unless she hears to the contrary within 1( days she will assume that she has an
agreement’ has no effect since mere silence, particularly when initiated by the offeror cannot constitute acceptance.
(B.7) $ounter – offer
's mentioned above, an original offer may be terminated by a counter @
offer 1. It follows from the receipt principle for communications that the counter%offe must be actually communicated to the offeree 1-. You're Reading a Preview Unlock full access with a free trial.
Alication of t!e La" Download With Free Trial
In the conte&t of the particular case, the seller’s letter of 1)th !eptember
counter%offer operating as a reCection of !heila’s offer to buy for A1-,===, which ta"e
effect upon receipt but since the letter in question is not received by !heila, the seller’s counter%offer is ineffective and !heila remains the offeror.
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‘revocation by death’ rule #=, where a live offer once e&isted has ceased to e&ist by the
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L18#M#1. This case suggests that, in general, the death of an offeror may not cause an offer to lapse, particularly if the offeree accepts in ignorance of the death. If it is a
offer where the continued e&istence of the offeror is essential to the formation of an
enforceable contract, namely an offer of a ‘personal contract’, then it is sensible the death of the offeror to automatically terminate the offer.
Alication of t!e La"
The question is whether !heila’s death before seller’s acceptance of
!eptember nullifies her offer. ?iven the seller’s ignorance of the offeror’s death an
the nature of the contract which involves no personal element, !heila’s offer is stil open to acceptance.
(B.6) 9ostal :ule
The postal rule, which was set out at the case of Ada" v Lindsell ##, provide
that under certain conditions, acceptance ta"es effect upon posting rather tha You're Reading a Preview delivering. 9or the postal rule to apply: Unlock full access with a free trial.
%acceptance by post must should be a normal, reasonable or anticipated mean of acceptance #$
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% the postal rule must not have been e&pressly e&cluded in the offer #( and
% the letter of acceptance must be properly stamped and addressed#)
Alication of t!e La"
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Cancel anytime. ta"e effect on posting, i.e. on #( th !eptember, as the postal rule is enforceable sinc
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acceptance by post is the reasonable means of acceptance
notably the wh
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communication between the parties was made by post % and there is nothing to sugges that the letter was improperly addressed or posted.
($). $onclusion
onclusively, a contract on the basis of the terms set out in !heila’s letter ha been concluded binding !heila’s e&ecutors.
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