Explain the reference to legal principle and relevant case law, the legal aspect of placing the ‘Klick’ clock in the shop window with a price tag attached.
Ann antiques has a rare ‘Klick’ clock on its shop with price tags of €1,000 attached. In spite of its wording the sign in the window does not constitute a legal offer, it is merely an invitation to treat. Invitation to treat is an indication that the person who invite is willing to enter into a negotiation but it is not yet prepared to be bound. This case may be seen in Fisher v Bell (1961). It was held that having switch-blade knives in the window of a shop was not the same as offering them for sale.
Analyze the reference to legal principle and relevant because law, the legal effect of the event that transpired between Ann and Beth ignoring the conversation that took place between Carol and Beth and advice as to whether the valid contract exist between them.
The original invitation to treat at €1,000 was met by an offer from Beth which offers €500 on the ‘Klick’ clock. After Ann received an offer from Beth, Ann made a counter offer on the clock that she would sell €750 for it. It is up to Beth to decide whether to accept the offer or not. A counter offer arises when the offeree tries to change the terms of an original offer.
For example, the Hyde v Wrench (1940) case. In that case, on 6th June, Wrench offered to sell his estate to Hyde for £1,000 but then Hyde made counter offer with £950. On the 27th June Wayne rejected Hyde’s offer and on 29th, Hyde offered back £1,000. In the end, Wayne refused to sell and also Hyde sued for breach of contract. Beth didn’t reject the counter offer but requested time to consider Ann’s offer. If there’s no consideration, then Ann may revoke the offer before the end of the agreed period. It is just like in the Routledge v Grant case. Grant wrote to Routledge offering to purchase the lease of his house. The offer was to remain open for...
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