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Garry saw an advertisement which stated:
‘Invitation to tender: 500 wooden containers required of 100cm x 100cm x 100cm to be supplied over the next three months. Contact Hugh at Haulage Ltd’.
Garry emailed Hugh saying that he would meet the requirements at a price of £5,000. Hugh then phoned Garry to say that he no longer required containers on the advertised terms. However he enquired whether Garry’s firm would consider an arrangement to produce such quantities of the containers as Haulage Ltd may order from time to time, Garry agreed to such an arrangement.
Task 1For each of the following statements, identify whether it is true or false.
True False
A. Hugh’s phone call amounts to a counter-offer
B. The initial advertisement placed by Haulage Ltd is an invitation to treat
C. Garry’s agreement to produce such quantities of the containers as Haulage Ltd may order from tim to time is an offer
D. Garry’s email amounts to an acceptanceAnswers: false true true false
statement C why is it true? Hugh’s statement is vague so wouldn’t be offer I understand, but how is Garry’s agreement an offer? And is Hugh’s statement a request for info or invitation to treat?
The way I see it is that, following the failed requirement of 500 containers, we’re at point zero again. Hugh asks about the possibility of future deliveries. I have that as an enquiry / invitation and Garry’s response is an offer stimulated by Hugh’s enquiry / invitation
OK?
Garry’s response is an offer but why? Because it’s a statement to be bound on terms? Why can’t his statement be acceptance is it because there needs to be an offer to accept?
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