Business Law Case Study
Case Summary:
-Bob owns a Jewelry store
-Sam operates electronic security equipment store
-Bob and Sam are friends
-Monday, Bob held a casual conversation with Sam about fitting his store with "closed circuit television and the best available electronic locks"
-Tuesday, Sam sent Bob a Quotation of price "Lists of models and List of price"
-Wednesday, Bob Replied BY POST. "Choice of Supreme Model for camera"
-Posted to old address, Sam received on Saturday and emailed on the same day " Will deliver the goods by Monday"
-Thursday, Bob wanted to cancel the contract, but couldn 't reach Sam
-Left a voice message, Sam received on Monday
Bob does not wish to take and pay for the goods
ADVISE in relation to Offer and Acceptance if an agreement has been formed.
Key Issues
Was there an Invitation to Treat?
Who made the Offer?
Who made the acceptance?
Does Postal Rule Apply?
Revocation of Offer
First Issue: Was there an Offer? Who is the offeror?
In the given case, the quotation sent by Sam to Bob on Tuesday is not an offer, but a mere invitation to treat. The general rule distinguished statement of price from a legally binding offer. Sam 's quotation of price was an attempt to invite Bob to make an offer to purchase the equipments. This fact is discussed in "Harvey v Facey", with the court found a mere statement minimum price does not contribute to an implied contract term to the person making an enquiry. The decision was made, based on the fact, the Defendant was merely answering the Plaintiff 's enquiry regarding the price of the property, and this did not make an affirmative answer to the first question regarding his willingness to sell. The court held that the Defendant had made an invitation to treat and not an offer.
(Cited http://www.lawnix.com/cases/harvey-facey.html, 3 March 2009)
Similarly, in order for Sam 's quote to be an offer, it has to be an indication that Sam is willingly to enter into the contract with Bob without further
-Bob owns a Jewelry store
-Sam operates electronic security equipment store
-Bob and Sam are friends
-Monday, Bob held a casual conversation with Sam about fitting his store with "closed circuit television and the best available electronic locks"
-Tuesday, Sam sent Bob a Quotation of price "Lists of models and List of price"
-Wednesday, Bob Replied BY POST. "Choice of Supreme Model for camera"
-Posted to old address, Sam received on Saturday and emailed on the same day " Will deliver the goods by Monday"
-Thursday, Bob wanted to cancel the contract, but couldn 't reach Sam
-Left a voice message, Sam received on Monday
Bob does not wish to take and pay for the goods
ADVISE in relation to Offer and Acceptance if an agreement has been formed.
Key Issues
Was there an Invitation to Treat?
Who made the Offer?
Who made the acceptance?
Does Postal Rule Apply?
Revocation of Offer
First Issue: Was there an Offer? Who is the offeror?
In the given case, the quotation sent by Sam to Bob on Tuesday is not an offer, but a mere invitation to treat. The general rule distinguished statement of price from a legally binding offer. Sam 's quotation of price was an attempt to invite Bob to make an offer to purchase the equipments. This fact is discussed in "Harvey v Facey", with the court found a mere statement minimum price does not contribute to an implied contract term to the person making an enquiry. The decision was made, based on the fact, the Defendant was merely answering the Plaintiff 's enquiry regarding the price of the property, and this did not make an affirmative answer to the first question regarding his willingness to sell. The court held that the Defendant had made an invitation to treat and not an offer.
(Cited http://www.lawnix.com/cases/harvey-facey.html, 3 March 2009)
Similarly, in order for Sam 's quote to be an offer, it has to be an indication that Sam is willingly to enter into the contract with Bob without further