Business Law: Offer, Acceptance, Consideration, and Intention

Topics: Contract, Contract law, Invitation to treat Pages: 2 (731 words) Published: January 10, 2013
Business Law(BL)

John is an offeror as he is putting his property out at 2 million and this offer may also be made to the world at large not just individuals or specific groups of people(Carhill v Carbolic Smoke Ball Co 1893). After having assessing through the situation of Adam and Bill, i would like to touch on assessing Adam's situation first. In this scenario, John was the offeror as he offered 2 million for the house and Adam is the offeree but as Adam was the first viewer of the house and he offered to pay 1.8 million, Adam then became the offeror and John became the offeree. Reason being there was a counteroffer of 1.8 million instead of the original 2 million done by Adam which made him the offeror. Following, John whom is the offeree did not response either positively or negatively towards Adam's offer but only kept quiet, so i would deem that there was no communication between them which also means there was no acceptance for this sale of property. Additionally, between these two parties the offeror and offeree, they had not applied the theory of silence to be constructed as acceptance for the dealing of the house. In this case John did not reciprocate towards Adam when he offered the price of 1.8 million, acceptance must be communicated ( Entores Ltd v Miles Far East Corp). Since there was no communication between offeror Adam and offeree John to agree that offeree's silence would be formulated as acceptance, this then would highlight that silence does not constitute as acceptance according to the case (Felthouse v Bindly 1862). Unless, there was communication done between Adam and John that silence would constitute as acceptance, following with both parties agreeing verbally or in written form on the price of the property, Adam has no factual grounds to take legal actions against John.

Moving on to assessing Bill's situation, on the same day after Adam left, Bill came over to view John's property. Bill agreed to the 2 million offer that...
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