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Contract Law

Forums › ACCA Forums › ACCA LW Corporate and Business Law Forums › Contract Law

  • This topic has 6 replies, 4 voices, and was last updated 10 years ago by mrjonbain.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • December 5, 2014 at 4:33 pm #218457
    Kiara
    Member
    • Topics: 8
    • Replies: 8
    • ☆

    Hi,

    I had a doubt regarding the following;

    A puts up an advert in her shop to sell her phone for 100.
    X texts her : Would you take 75
    A replied : No afraid not.

    A then replies,okay I will pay 100.

    My confusion is;

    ‘X texts her : Would you take 75’
    Would this be an inquiry or offer?

    December 5, 2014 at 4:52 pm #218471
    Tony
    Member
    • Topics: 1
    • Replies: 4
    • ☆

    My confusion is why A is offering to buy her own phone 😀

    Anyway, while that is not really necessary for the exam, I’d assume it’s an intention to treat. A can come back and offer the phone at 75 by say she would accept it.

    December 5, 2014 at 6:14 pm #218595
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    That text “Would you take 75?” is an enquiry

    The advert is still open so “Ok I’ll pay 100” is an offer

    Ok?

    December 5, 2014 at 6:17 pm #218600
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    Tony means “an invitation to treat”, not an “intention to treat”

    Either way, we’ve not progressed far down the road towards establishing a contract. All we have so far in an invitation and an enquiry!

    December 5, 2014 at 6:33 pm #218627
    Tony
    Member
    • Topics: 1
    • Replies: 4
    • ☆

    Apologies, yes. Predictive text and all that.

    December 5, 2014 at 7:18 pm #218664
    Kiara
    Member
    • Topics: 8
    • Replies: 8
    • ☆

    Sorry that was a mistake on my part.

    I meant X replied saying he’ll give 100.

    Hm, alriight.
    However if A were to reply yes to X’s question (would you take 75), wouldn’t it become binding?
    Thereby making X’s text an offer?

    December 8, 2014 at 8:39 pm #219535
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2426
    • ☆☆☆☆☆

    I think arguably it could be seen as an offer given the circumstances surrounding the statement.However,I tend to think it might still be viewed as an enquiry about price not as a legal offer that could be accepted and form a binding contract.The actual offer and acceptance would probably arise further on in the transaction as arrangements for payment and hand over of phone were made.As it stands A could text X back writing yes he would accept 75 for phone and then sell the phone to another party and x would have no legal recourse as no contract would exist.

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