Contract Law: Offer, Acceptance & Consideration
Added on 2020-02-24
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Running head: CONTRCAT LAWContract lawName of the studentName of the universityAuthor note
1CONTRACT LAWPart AIssue 1The issue in this case is to determine whether there was a valid contract between Brett and peteror notRules For the purpose of constituting a contract proper offer and acceptance has to be taken placebetween the parties to the contract. For an offer to be complete it must have details of price and the specification of goods or else itis regarded as invitation to treat as stated by AGC (Advances) Ltd v McWhirter (1977) 1 BLR9454. A person who is making an offer to another person has the duty to communicate such offer to theperson to whom it is made. If an offer is not communicated a person cannot accept it as providedin Bressan v Squires [1974] 2 NSWLR 460There is a clear distinction between legally binding agreements and domestic agreements whichhave been clearly set out in the case of merritt v merritt [1970] EWCA Civ 6 and balfour vbalfour [1919] 2 KB 571 according to which the intention of creating a legally bindingagreement is the major requirement for the formation of a contract. Silence cannot be deemed as acceptance, however if it is stated expressly into the offer thatsilence would be deemed as acceptance than the person to whom the offer is made had the dutyto expressly revoke the offer as provided in the case of Felthouse v Bindley (1862) EWHC CP J35.
2CONTRACT LAWFor the purpose of creating a valid contract both the parties have to accept the terms of thecontract in the same sense or else the contract would not be held to be valid. In the case of Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1 the question beforethe court was that whether a valid acceptance has been made or not. It was provided by the courtin this case that as the plaintiff was induced by the offer to get into the contract and in additioncompleted the acceptance on his part it would be deemed as a valid acceptance on the part of theplaintiff. Application In the provided circumstances the peter wanted to sell his car to his nephew Brett. The car had adiesel engine. Brett had no idea that that car had a diesel engine. An offer was sent by peter toBrett in form of a letter. The offer was deemed to be complete as the offer contained detailsabout price and specification of the goods. However it was the duty of peter to duly ensure thatthe offer has been communicated to Brett and he is aware of it. Although the offer had been sentby post the postal rule will not be applicable as it is valid in case of acceptance only. The offer has a clause that peter would deem the offer to be accepted if no reply is provided bypeter in relation to it till Friday. Although generally silence cannot be taken as a validacceptance, circumstances where such actions have been expressly stated by the offer it can betaken as an acceptance. Therefore in such circumstances silence would result in acceptance.However it has been provided that the offer had not come into the knowledge of Brett andaccording to the above discussed principles an offer for the purpose of being accepted has to bebrought to the knowledge of the offeree therefore acceptance was yet to be made.
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