Business Law and Ethics, Offer and Acceptance for a Contract

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  • Topic: Contract, Offer and acceptance, Invitation to treat
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  • Published : May 5, 2013
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Business Law and Ethics

Assignment

14/03/2013
Module : 26313
Module leader : Phil Robinson
Words count : 1088
In order to advise Neil, it is necessary to consider the law of the contracts, especially about offer and acceptance. We will analyze the situation to see what laws are applicable and advise Neil. In this case, we have three different people: Firstly an offeror, a person who makes an offer (in this case, Neil) and two offerees, the person to whom an offer is made (in this case, Theresa and Alex).

Neil placed an advert in the “Cats Weekly” magazine, which offer a rare female utopian cat for sale £500 or nearest offer. This is an invitation to treat, which is “an indication that a person is prepared to receive offers with a view to entering into a binding example, an advertisement of goods for sale or a company prospectus inviting for shares. It must be distinguished from an offer which requires only acceptance to conclude the contract” (Corporate and Business Law).

On the Monday, Theresa phoned Neil to make a counter-offer of £450. He does not want to sell it less than £475, and tell her she has until Friday noon to do a written acceptance.

On Wednesday Alex, made an appointment to see the cat at 10.00 am on Thursday. He made an offer of 470£ for it, which Neil accepts.

“An offer is an express or implied statement of the terms on which the maker is prepared to be contractually bound if it is accepted unconditionally. The offer may be made to one person, to a class of persons or to the world at large, and only the person or one of the persons to whom it is made may accept it.” (Corporate and Business Law).

Case of Theresa
Theresa saw the advertisement, and called Neil to make a counter-offer of 450£. Indeed, “An advertisement of goods for sale is usually an attempt to induce offers” [Partridge v Crittenden (1968)]. He declined it by saying he won’t sell it for less than 475£. It means he has done a counter-offer, so Theresa may...
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