FORMING A CONTRACT

The rules of offer and acceptance/ forming a contract



The rules of offer and acceptance/ forming a contract

Introduction

The Contractual agreement is traditionally analyzed in reference to acceptance and offer. One of the stake holders is known as the offeror puts an offer which is to be accepted by the second stakeholder also known as offeree, which makes a legal contract in between two parties. The key concepts which are needed to be deal with and familiarize in regards to the acceptance and offer compose of differences between the invitations in response to an offer. The specific examples are needed to identifying order to determine whether an offer or treat exists or not. The case of Carlill v Carbolic Smoke ball co. is the leading reference case in the above mentioned area and it worth a lot in regards to understanding the concept behind such cases and their outcomes as per law (Stone R., 2012).

 

The issues. (C - claim)

Case 1:

Finemarket (a shop) placed the following advert in the newspaper: “Sale. Many special offers, including 20 per cent off all stated clothing prices”.

Charles went to the shop to buy some clothes but found they were being sold at the normal price with no reduction. He told the shop that he had seen the advert (which she brought with him) and that he was entitled to get 20 per cent off the price.

Case 2:

Charles later looked at Finemarket's web site and saw an Electro brand television for sale at £200. He emailed the shop and asked “Do you still have an Electro television for £200?” He received a reply: “Yes we have one left in stock. Would you like us to keep it for you?” He emailed back: “Yes please, I would like it”.

Legal rules. (L - law)

Stevenson v McLean (1880)

On Saturday, the person who is a defender placed an offer to sell iron at 40 shillings/ton to the plaintiff. The offer was valid till Monday. On Monday 1 am, the plaintiff sent a telegram enquiring if he could make this deal in terms of credit. At 1.34 pm, the plaintiff released a telegram about the acceptance of the offer coined by the defender, but at around 1.25 pm the defendant launched another telegram stated as: 'Sold iron to third party' which was delivered at 1.46pm. The plantiffs sued the defendant for the reason of breaching ...