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Contract Law

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Contract Law

  • This topic has 7 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • November 19, 2014 at 2:55 pm #211278
    Kiara
    Member
    • Topics: 8
    • Replies: 8
    • ☆

    In the following scenario;

    X put an advert in the window of her local shop which stated; Second hand phone for sale $100. Pls text me 007799148.

    A texted X and asked if X would accept $75. X replied: ‘No afraid not’. A texted back saying ‘Alright I’ll give you$100’. X didnt reply and took off the ad, and decided to post it on a website..

    Now my question is,
    When A texts back saying he’ll give X $100. Is that a new offer? Or a counter offer?

    November 19, 2014 at 4:15 pm #211284
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    When A texted and ENQUIRED about the possibility of a drop in price, that enquiry is not a counter offer, so the offer still stands

    The text saying “Alright, I’ll give you $100” is an acceptance of that original offer and it seems to me that A has a contract with X

    OK?

    November 19, 2014 at 4:36 pm #211293
    Kiara
    Member
    • Topics: 8
    • Replies: 8
    • ☆

    But isn’t the advert a invitation to treat and not an offer?
    So shouldn’t A’s reply be an offer followed by X’s rejection which leads to termination of A’s offer?

    November 19, 2014 at 7:32 pm #211386
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    Hi Kiara

    (I have deleted my last post and your response – forgive me

    Here we go again!)

    Yes, and I was looking at it as the sort of advert that IS available for acceptance – not a “reward” Carlill type advert but one where (as in a previous exam) the wording is such that it can be taken to be an offer (Past exam question added into the advert “this is a serious offer”)

    But you’re correct, I don’t have any justifiable reason to have assumed that.

    So, advert is an invitation to treat, first text is enquiry, leading to texted refusal in reply to the enquiry, next text from A is an offer and X non-response will simply allow that offer to die through lapse of time

    At no time does X make an offer – he simply replies to a request for information

    Better?

    November 27, 2014 at 1:54 pm #213818
    Kiara
    Member
    • Topics: 8
    • Replies: 8
    • ☆

    I have a small confusion,
    Could the first text be considered an offer in any case?

    November 27, 2014 at 4:00 pm #213868
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    Now that confuses me – I read an answer today in the Kaplan exam kit that says the such a request is an offer.

    I’m afraid I don’t believe that it is!

    An offer is a statement indicating ones willingness to be bound under certain conditions

    To me, that first text is merely a response to a request for information and is not therefore an offer capable of acceptance. The Kaplan questions go on (3 very similar questions) and call such a response an “invitation to treat”

    I can agree with that – the idea that a response to a question can be taken as such an invitation

    Ok?

    November 27, 2014 at 5:44 pm #213905
    Kiara
    Member
    • Topics: 8
    • Replies: 8
    • ☆

    So just to double check.
    X’s advert is an invitation to treat followed by A’s enquiry regarding the price.
    this is followed by X’ refusal.
    A then makes an offer.

    Am i right?

    November 28, 2014 at 6:42 am #213983
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    That’s how I see it, yes

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