Offer and Acceptance

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  • Topic: Contract, Offer and acceptance, Powell v Lee
  • Pages : 3 (1116 words )
  • Download(s) : 798
  • Published : February 6, 2013
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Student Name: Ahmed Fazeel

Question 1 (15 marks)
For this case the major issue is whether a valid contract is made between Tina and Yatie, and whether the the offer by Yatie was revoked or not. According to (Miller & Jentz, 2010) every contract will involve atleast two parties. That is the offeror and the offeree. The offerer is the party who makes the offer, and the offeree is the person to whom the offer is made to. OFFER

As per (Clarkson, Miller, Jentz, & Cross, 2009) an offer is a promise or commitment to do or not to do a certain thing. And there are three elements for an effective offer to be legally bounding from the common law. They are: the intention must be serious, its terms should be definite, and must be communicated to the oferee. In this case Yatie sends the offer letter proposing to supply hancrafts to Tina. The offer clearly satisfies these elements. Firstly it is evident that Yatie’s serious intention as she requested a written acceptance from Tina, as an objective aproach. If we look in to the case of Lucy v. Zehmer, 196 Va. 493; 84 S.E.2d 516 [1954], the parties signed a document which was for the sale of land and it was binding. Similarly in this case the intention to create legal relations is evident from the Yaties request to Tina to send a written acceptance. Secondly it has clear terms (to supply handcrafts) of what they are going to do. The offer from Yatie was clear in this case, and unlike in the case of Ahmad Meah & Anor v. Nacodah Merican [1890] 4 Ky 583 where offer was too vague. And for the last element, the communication of the offer was complete when it was received by Tina (the intended party) on 4th September 2011 and when it becomed knowledge to Tina, in line with the section 4(1) of the Contracts Act 1950: Act 136 (CA) So the offer by Yatie was complete. ACCEPTANCE

Looking into the acceptance, Tina’s acceptance was communicated by her staff Anis. Acceptance is the voluntary agreement to the terms of...
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