Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Offer and acceptance
- This topic has 3 replies, 3 voices, and was last updated 6 hours ago by MikeLittle.
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- January 3, 2025 at 5:51 am #714384
Hedge pic accidentally advertised a car tyre for £10 per tyre instead of £100 per tyre. Before Hedge pic could change the advert it received two email orders from Arthur and Binta accepting four tyres for £40
Arthur also transferred £40 fo Hedge pic’s bank account
Which of the following statements correctly explains whether or not Hedge pic must sell the tyres for £40?
0/2
Hedge pic does nof have to sell to Arthur or Binta because the e-mails constiuted invitations to treatHedge pic must sell to Arthur because the transfer of £40 confirmed acceptance
Hedge pic does not have to sell to Arthur or Binta because the e-mails constituted offers
Hedge pic must sell to Arthur and Binta as the acceptance e-mails were received before the advert was changedWhat would be the correct answers.?
I think option A is correct.January 4, 2025 at 12:29 pm #714407Unless it’s a ‘reward’ situation (Carlill v Carbolic Smoke Ball Company) English Law takes an advert to be an invitation to treat rather than an offer capable of being accepted.
This being so, and in the absence of any information of any kind of ‘reward’, I would suggest that Hedge’s advert would be seen by the Court to be an invitation to treat and therefore option (a) would seem to me to be the correct answer.
HOWEVER!!!!! I believe that you would not have posted this question if the printed solution had also given option (a) as being correct. So, What does the printed solution offer as the answer?
I await with baited breath!
January 18, 2025 at 8:44 am #714753I thought option C should be correct as emails from Arthur and Binta are only offers. Option A mentions the emails as invitation to treat rather than the advertisement by Hedge
January 18, 2025 at 12:48 pm #714765Oh! Mike, Mike, Mike! Self-berating – RTFQ
You’re correct of course – option A mentions the emails as being invitations whereas I’m working on the basis that the original advert was the invitation.
Let’s have another (more careful) look!
Option A is clearly incorrect – the emails are offers following the advert invitation to treat
Option B If the advert is an invitation, that’s not available to be ‘accepted’ so Option B is incorrect
Option D also incorrect because the advert (as above) is an invitation and not available to be ‘accepted’
And that leaves us with Option C – the emails ARE offers following the advert invitations. And Hedge presumably does not want to accept these offers so does not need to sell the tyres for £40
Makes sense now? I hope so – and there’s a lesson for you (and it’s one that I emphasised over and over again to students) RTFQ
Humble apologies for my breach of my own exhortations!
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