Essay Available:
Pages:
4 pages/≈1100 words
Sources:
0
Style:
Other
Subject:
Law
Type:
Essay
Language:
English (U.K.)
Document:
MS Word
Date:
Total cost:
$ 17.28
Topic:
Contract Law
Essay Instructions:
Here is the question:
Daisy runs a business selling dancewear and accessories. Advise Daisy in EACH of the
following SEPARATE situations:
(a) Daisy wants to buy a delivery van for her business. On Monday, the following
exchange of emails occurs between Makka and Daisy:
Makka: “I hear you are looking for a van. I have one for sale. It’s yours for
£30,000. Need to know by Friday evening latest.”
Daisy: “Would you consider selling for £25,000?”
Makka: “Sorry, £30,000 is already a good price.”
On Thursday morning, Daisy posts a letter to Makka, agreeing to buy the van for
£30,000. She sends this letter by first-class post, so that it should arrive the
following day. It is duly delivered on Friday afternoon. On Friday morning,
however, Makka emails Daisy as follows: “Got a better offer for the van. No
longer interested in selling to you.”
(b) Daisy places an advertisement with the local radio station: “Special sale at
Daisy’s: the first customer through the shop door on 5 April can buy a luxury
dance bag worth £100 for just £1.” Iggle hears the advertisement and decides to
be the first customer through the door by camping outside the shop through the
night of 4 April. When Daisy opens the shop door on 5 April, Iggle is the first
customer through the door and claims the dance bag for £1. Daisy refuses.
(c) Tombliloo Ltd, another supplier of dancewear, is closing down. It places an
advertisement in the local press stating: “All stock must go. All reasonable offers
considered.” Daisy emails as follows: “I’ll take all the ballet shoes, £5 per pair.
As you invited the offer, I’ll consider it accepted unless I hear to the contrary by
the end of today.” Piggle also emails Tombliloo as follows: “Happy to take the
ballet shoes. Will pay whatever is reasonable. Suggest let Wottinger fix the
price.” Tombliloo does not respond to Daisy. It replies to Piggle: “Agreed.” When
approached, however, Wottinger declines to fix a price. Tombliloo has now
received an offer from Haahoo of £8 per pair, which it wishes to accept. An
objectively reasonable price in all the circumstances would be anywhere in the
range of £5-£10 per pair.
Please use OSCOLA referencing
Essay Sample Content Preview:
Contract Law
Student’s Name
Institutional Affiliation
Professor’s Name
Course
Due Date
Contract Law
To advise Daisy on the three separate situations, the principles of contract law, including offer, acceptance, consideration, and intention to create legal relations, must be carefully examined.
(a) The Van Purchase Scenario
Issue: The central issue is whether a binding contract was formed between Daisy and Makka when Daisy posted her acceptance letter agreeing to purchase the van for £30,000.
Relevant Law: The case hinges on applying the postal rule and whether Makka's revocation of the offer was effective before a contract was formed. According to the postal rule, acceptance is deemed complete when the letter is posted, not when it is received, as established in Adams v Lindsell (1818) 106 ER 250.[Adams v Lindsell (1818) 106 ER 250 https://law.justia.com/cases/foreign/united-kingdom/106-eng-rep-250-1818.html]
Application: Here, Makka made an offer on Monday, which remained open until Friday. Daisy’s response on Thursday morning, agreeing to buy the van for £30,000, constitutes an acceptance under the postal rule, which means a contract was formed when Daisy posted her acceptance letter. However, Makka's email revoking the offer on Friday morning could complicate matters. The key question is whether the revocation was effective before Daisy’s acceptance was posted.
According to the rule in Byrne v Van Tienhoven (1880) 5 CPD 344, revocation must be communicated before acceptance is posted. Since Daisy posted her acceptance before receiving the revocation, the revocation could have been more effective, and a binding contract had been formed.[Byrne v Van Tienhoven (1880) 5 CPD 344 https://www.oxbridgenotes.co.uk/law_cases/byrne-v-van-tienhoven]
Conclusion: Daisy should be advised that the contract for the van is valid and binding. Makka's attempt to revoke the offer could have been more effective because it was communicated after the acceptance had been posted. Applying the postal rule means that Daisy's acceptance took effect when the letter was sent, securing the agreement at the original price. This case highlights the importance of understanding the legal principles surrounding contract formation, particularly when using different methods of communication. Daisy should be cautious in future transactions, ensuring all parties know the terms and timelines for acceptance.
(b) The Dance Bag Scenario
Issue: The issue here is whether Daisy's radio advertisement constitutes a legally binding offer that Iggle could accept by being the first customer through the shop door.
Relevant Law: This situation asks whether Daisy's advertisement is an offer or an invitation to treat. In Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256, an advertisement was held to be an offer if it showed a clear intention to be bound upon acceptance.[Carlill v Carbolic Smo...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now: