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Counter-offer/ request for information

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Counter-offer/ request for information

  • This topic has 4 replies, 3 voices, and was last updated 4 years ago by Vijay.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • September 27, 2020 at 8:56 pm #586876
    ksgis
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Hello,

    I was wondering whether the following case is a counter offer to a request for information.

    A put up a poster at the shop to advertise the sale of a product. B saw that poster and asked the price of the product. A replied to B with the product’s price.

    Later on, B asked A whether A can provide a discount for the bulk purchase (without stating the amount of discount). A agreed and stated the new discounted price of the product.

    I would like to ask whether:
    1. B is making a counter-offer or requesting further information from A
    2. A is making an offer or a counter-offer

    Thank you!

    September 27, 2020 at 9:14 pm #586877
    ksgis
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    I also would like to know whether A was making an offer when he replied to B that the original product’s price at the beginning or it was a part of the invitation to treat.

    And whether A was making an offer or a counter-offer when he stated the discounted price as mentioned above.

    Thank you for your time.

    September 28, 2020 at 9:30 pm #586942
    Vijay
    Member
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Hi

    So in the first question you ask – it is B who is simply asking information and not a counter offer.
    A is making an offer.

    A originally responding to B’s question is essentially making an offer.

    When A states the discounted price he is simply making a fresh offer.

    I hope this helps clarify.

    Kind regards,

    Vijay

    September 29, 2020 at 7:40 am #586957
    barbjohn
    Participant
    • Topics: 0
    • Replies: 47
    • ☆

    I thought that the case of Harvey versus Facey involving a response to a request for information established that such a response was NOT an offer

    October 1, 2020 at 12:04 pm #587132
    Vijay
    Member
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Harvey v Facey did indeed state that response to a question in that case did not amount to an offer.

    However, it very much depends on what the question is and what the response is. Based on the information provided, it would really depend on exactly what is said. If what is said is an expression to be bound by a specific new discounted price then this would amount to an offer.

    Kind regards,

    Vijay

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