LAW - LEGAL ISSUES

Law - Legal Issues

Law - Legal Issues

Introduction

The acceptance must exactly mirror the original offer made. A counter-offer is not the same as an acceptance. A counter-offer extinguishes the original offer: you can't make a counter-offer and then decide to accept the original offer. A request for information is not a counter-offer. If you ask the offer or for information or clarification about the offer, that doesn't extinguish the offer; you're still free to accept it if you want. It is very important to distinguish an offer from an invitation to treat - that is, an invitation for other people to submit offers. (Anderson, 2006)

Law - Legal Issues

When a book is placed in a shop window priced at £7.99, the bookshop owner has made an invitation to treat. When I pick up that book and take it to the till, I make the offer to buy the book for £7.99. When the person at the till takes my money, the shop accepts my offer, and a contract comes into being. Adverts basically work in the same way as the scenario above. Advertising something is like putting it in a shop window. Auctions: The original advertising of the auction is just an invitation to treat. When I make a bid, I am making an offer. When the hammer falls, the winning 'offer' has been accepted. The seller now has a legally binding contract with the winning bidder (so long as there is no reserve price that hasn't been reached) (Anderson, 2006) N.B: an offer can be revoked at any time before it is accepted, so long as you inform the person you made the offer to that the offer no longer stands. Consideration: each party to the contract must receive something of value. This is best illustrated by an example: suppose I promise to give you my watch, but you don't give me anything in return. If I break my promise and keep my watch, you can't then go to court and make me give it to you.

The detail isn't necessary here, but there is a separate note on them if you're interested. Intention to create legal relations: if my brother offers me a lift to London, and I say I'll contribute to the cost of the petrol and then don't, there isn't necessarily a binding contract that he can sue me under. Agreement is essential to any contract. Before there can be a contract, there must be a consensus ad idem: that is, there must be a meeting of the minds. The two sides to a contract, whether for the construction of the liner Queen Elizabeth or for having your lawn cut, must agree on the fundamental terms of the contract. There must be an intention to enter into a legally binding contract. Whether the parties have reached an agreement is determined by an objective standard. What each party believes the other to be agreeing to will not be the determining ...