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Hi Sir
Can u please explain me the core point in the case Financing ltd v Stimson I mean what is the law behind it.
thankuThere seem to be two points at isue here. Does the car dealer have the ostensible authority as an agent for the finance company. Lord Denning said “Yes, they DO in fact have that ostensible authority”. Therefore, by returning the car, Stimson indicated that he was retracting his offer.
Was Stimson’s action an invitation, an offer or an acceptance.. Clearly it wasn’t acceptance because the contract only came into being when the finance company signed on 25 March. If it were an invitation, Stimson returning the car indicates that the invitation is withdrawn.
On the same basis, if it were an offer (and Denning said is WAS), then by returning the car, Stimson is again revoking the offer BEFORE the finance company accepts it.
So….no offer, no contract
OK?
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