Common Law

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Outcome-1………………………………………………………………….3 Outcome-2………………………………………………………………….5 Outcome-3………………………………………………………………….6 Outcome-4………………………………………………………………….8 Bibliography………………………………………………………………...10 Outcome 1:

Before describing Bill and James legal position according to their activities, the formation of a contract has given below in Figure 1:

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By the formation of contract, the legal position of Bill and James has been analysed as following:

Invitation to Treat:
When Bill said to James, “I may be prepared to buy ten televisions from you for £2000”. Then the statement of Bill is an invitation to treat for using in bill’s statement ‘I may be prepared to buy’. According to Givson v Manchester City Council [1979] 1 WLR 294: there was no binding contract because there never was an offer made by the Council. The Council’s letter stating that it ‘may be prepared to sell’ was merely an invitation to treat.

Offer:
Offer should to be clear and certain. James replied, “I will sell you the ten television sets for £2500.” Here James statement was clear and certain. So it is an offer. According to Carlill v Carbolic Smoke Ball Co. (1893): The advertisement in this case was held to be a unilateral offer because there was a clear prescribed act.

An offer needs to be communicated, orally or written. Without communication, offer is not valid. According to Taylor v Laird (1856) 25 LJ Ex 329: An offer has no validity unless and until it is communicated to the offeree so as to give the offeree the opportunity to accept or reject it. Here it seems the offer of James has been communicated. So the offer of James is valid.

Counter Offer:
In Bill’s and Jame’s statements, there has not been made counter offer. If Bill’s statement would clear and certain then Bill’s statement could be offer and James statement could be counter offer. And after that the same day James rejected to sell television. So the contract has not been made. According to Hyde v Wrench (1840) 3 Beav 334: the counter- offer operated as a rejection of the original offer. There was therefore no contract.

Revocation of Offer:
Next morning Bill accepted James offer by communicating with James. But before accepting James offer, James revoked his own offer by telephonic message on Bill’s answer-phone. According to Routledge v Grant (1828): offeror could withdraw his offer at any time within six weeks provided that no acceptance had been made. So it is clear that the offer has been revoked successfully by James.

But revocation is effective only by actual communication. James revoked his offer by telephonic message on Bill’s answer-phone stating he is no longer prepared to sell the television to Bill. There actual revoked communication has not been made by James. If Bill does not get revocation message from answer-phone before his acceptance the offer then the revocation of James will be unsuccessful. According to Byrne v Van Tienhoven (1880) 5 CPD 344: T’s revocation was inoperative because it did not reach B until after acceptance had been made.

Outcome 2:

The postal rule was established in 19th century. From 19th century to today the postal rule is considered, when an offer is accepted by letter or telegram. The postal rule was laid down in Adams v Lindsell (1818) 1 B & ALD 681: There was a good contract on 5 September when the letter of acceptance was posted. The acceptance of offer is effective from that time when the letter of acceptance is properly posted. According to postal rule a letter need to be properly posted by an official letter box or by the employee of the post office who has authorization to receive letters. It will not be accepted if the letter is posted by putting letter into the hands of a postman who has no legal permission to receive the letter: Re London and Northern Bank, ex p. Jones (1900) 1 Ch 220. On the contrary, Revocation of offer...
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