Contract law offer and acceptance essays

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The Principles of law, vitiating factors and contents of contract have been applied to provide answers to the questions. Question 1 states: Andy advertised a block of land for sale, stating that it was zoned for light industrial.

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Tim, who wanted to build a workshop from which to run his mechanical repair business, inspected the property and agreed to buy it. After negotiations and before Andy and Tim signed the contract of sale, the council changed the zoning of the land to residential, a fact known to Andy, but not Tim. Tim signed the contract and has now discovered that he cannot build his workshop. In this question I will focus on advising Tim.

This problem that arises between Tim and Andy relates to vitiating factors in the law of contract. According to the law of contract, vitiating factors are the ones that tend to affect the validity of the contract Scott Once the vitiating factors exist like in the case of Tim and Andy, then the contract can be rendered null and void or voidable.

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The law recognizes situations in which the agreement between the parties has been interfered with in a sense that is fundamental, so as a result of this Tim has been provided with a base in which he can claim that there is no reached agreement between him and Andy. The vitiating factors which include misrepresentation, undue influence and certain forms of mistake render a contract voidable and therefore the contact may be terminated Ewan The vitiating factors include misrepresentation, mistake and undue influence.

Misrepresentation refers to a false statement of fact which is made by one of the party to another party Ewan In this case, a false statement of fact has been made by Andy to Tim. Since Tim has found misrepresentation in the signed contract; he is therefore allowed to recede. According to rescission, when one party breaches the contract, the other party is set free and can rescind the contract.

Contract Law and Modern Communication Essay

Therefore, if Tim wants to sue for any remedy, he then must first file a suit for rescission of the contract with the courts, when courts issue him with a rescission order then he is free from contractual obligations Randy Questions 2 states: Eva takes her expensive fur coat to Ace Dry Cleaners, an establishment that Eva and her family have always used for dry-cleaning.

As in the past, Eva was handed a docket and, as usual, she placed it in her purse without reading it. When she called to collect the coat it was missing. In this question I will focus on providing advice to Eva. The agreement between Eva and Ace Dry Cleaners is a unilateral contract. Household Fire insurance v Grant [] 4 Ex D makes it evident that if an offeror expressly or impliedly rescinds the effect of the postal rule, then acceptance will not occur at the moment of postage. Clearly as time has progressed, postage being used as a method of communicating acceptance has become less frequent.

What is Offer and Acceptance? (Contracts)

Various other instantaneous methods of communication e. The short answer is no. The rules surrounding instantaneous methods of communication focus on the receipt of the acceptance i. The Courts will also closely examine the facts surrounding the typical contractual practices the parties adhere to, to determine whether the methods of communication relative to the receipt are in fact prescribed. Tenax Steamship Co v Owners of the Motor Vessel Brimnes [] EWCA Civ 15, also highlights that similarly to the postal rule, the actual acceptance itself does not need to be acknowledged by the offeror for effective communication to be established.

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It merely needs to be received! The rationale surrounding this, similarly to the postal rule, is based on the Court attempting to balance the positions of the parties relative to the potential contract. In Brinkibon Ltd v Stahag Stahl [] 2 AC 34 it was contended that if acceptance were limited to situations in which the offeror had the acceptance brought to their attention, it would convolute typical business arrangements. Due to working hours being restricted and the relevant personnel not being directly contactable at all hours.

Entores v Miles Far East Corp [] 2 QB informs us that in situations where the offeror is at fault for the lack of receipt then the acceptance is still deemed to be effectively communicated. If however there is no fault by either party for the lack of receipt, then the acceptance is not considered effectively communicated.

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If silence however, is also accompanied with particular types of conduct, then it could potentially amount to communication. This is known as implied acceptance. A type of situation where this could occur is best illustrated through a case example. In Brogden v Metropolitan Railway 2 App Cas , a situation arose where parties had been dealing with each other for a long time on an informal basis. It was decided by the parties that they should write-up a formal contract, the parties did not actually do this.

No express acceptance as to the contracts terms could therefore be found. The Court however did not contend that there had been no acceptance. The Court believed that as the parties has been acting in a manner than affirmed the contract existed through their conduct, then the contract must have been impliedly accepted. Unilateral offers as defined in Carlill v Carbolic Smoke Ball Company [] 1 QB CA have a completely different method for effectively communicating acceptance for more information on unilateral offers consult Chapter 1.

Communication is not in fact necessary to accept unilateral offers. Due to the fact unilateral offers usually require some form of specific performance to be accepted. Which means to effectively communicate acceptance in these situations, the conduct of the offeree is normally sufficient.

The test to determine whether or not someone has accepted an offer is objective i. In Scammell and Nephew v Ouston [] AC HL, it was established that if the terms of an offer are not sufficient then it cannot be accepted, again an objective approach is adopted by the Courts in these situations. Often in commercial contracts, the parties involved will employ standard terms whenever contacting.

This is done for obvious reasons, namely to save time, money etc. If both parties have standard terms, then clearly a problem will arise. Simply defined as, the last set of terms agreed to by the parties would be the ones applied by the Court. In this case, a party had agreed to deliver goods to the other. On receipt of the goods a party signed a delivery note with terms attached. The Court agreed these terms should be the ones that binds the parties, acknowledging that the previously agreed upon terms had been overridden by this acceptance.

Offers are not infinite i.

Acceptance Lecture

In Routledge v Grant [] 4 Bing it was established that even if an offeree is given a timeframe in which they can accept the offer. The offeree can still revoke the offer during that time as long as the revocation is communicated effectively. Essentially, an offeror can revoke an offer at any point unless acceptance has been communicated - Hare v Nicholl 1 All ER Note that, in the case of unilateral offers, the offer cannot be revoked if the conduct of the parties has objectively evidenced communication.

An offers revocation also does not need to be communicated by the offeror, a reliable third party objectively accessed can sufficiently communicate said revocation - Dickinson v Dodds 2 Ch D What would happen if the offeree decides that they want to revoke their acceptance of an offer? It was held in Dunmore v Alexander 9 Sh 19 a Scottish case that postal acceptance can be revoked by a faster means of communication.

contract law offer and acceptance essays Contract law offer and acceptance essays
contract law offer and acceptance essays Contract law offer and acceptance essays
contract law offer and acceptance essays Contract law offer and acceptance essays
contract law offer and acceptance essays Contract law offer and acceptance essays
contract law offer and acceptance essays Contract law offer and acceptance essays

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