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OFFER AND ACCEPTANCE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › OFFER AND ACCEPTANCE

  • This topic has 6 replies, 2 voices, and was last updated 5 years ago by MikeLittle.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • May 24, 2020 at 4:31 pm #571756
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 3
    • ☆

    On Sunday, 1st July 2019, Alvin heard from his friend named Nicky, that Theodore, a former colleague wishes to sell his nursery business called “Chip n Munk” for RM2 million. Alvin visits the nursery and seems to be interested to purchase nursery business. Theodore wrote a letter of offer to Alvin on 10th July 2019 stating that “if Alvin agrees with the offer and responds through a letter within a week, the business will be sold to him.” However, Alvin replies and says that “he can only afford it if he could pay for it in four installments”. Theodore does not respond. Later that day, Theodore receives a message on Facebook from his friend, Simon, saying “I heard you are selling your nursery. I would like to buy it for RM1.9 million.”
    On 16th July 2019, Alvin sends a letter by PosLaju Malaysia services to Theodore accepting Theodore’s offer and in the letter, he enclosed a cheque for the sum of RM2 million. On the same day, Theodore replies Simon’s message on Facebook accepting Simon’s offer and giving him instructions on the payment details.
    On Sunday, 17th July 2019, Alvin heard from a mutual friend that Theodore had sold his nursery business to Simon.
    On Monday morning of 18th July 2019, Alvin approaches Theodore at his nursery and asks Theodore if he has received his letter to which Theodore replied that he had not. Theodore also informed Alvin that he had sold the nursery to Simon for RM1.9 million. Alvin was disappointed and very furious. On returning home that evening, Theodore finds Alvin’s letter in his room. His wife informed him that it came by courier that afternoon.

    Advise Alvin on the two matters below:
    i) whether he has any action against Theodore for breach of contract; and
    ii) whether Theodore could revoke his acceptance.

    May 24, 2020 at 8:34 pm #571769
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    I don’t really think that I should be doing your homework!

    What answers do you have in mind?

    Let me know your thoughts and I’ll see if I can agree with you

    OK?

    May 24, 2020 at 8:44 pm #571770
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 3
    • ☆

    I think is it a counter-offer or supply for information? For Alvin and Theodore

    And also about postal rules?

    But I don’t sure can Theodore revoked acceptance or not?

    May 24, 2020 at 8:48 pm #571771
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 3
    • ☆

    I think is it a counter-offer or supply for information? For Alvin and Theodore

    And also about postal rules?

    But I don’t sure can Theodore revoked acceptance or not?

    May 25, 2020 at 4:18 pm #571822
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    I think it’s a request for information and is not a counter offer

    Postal rule appears to be applicable and, if so, Alvin’s acceptance letter should confirm the contract ( it satisfies all the necessaries for postal acceptance to be effective)

    Can Theodore revoke the acceptance? I can’t see any justification for him doing so – can you?

    It seems to me that Theodore is in deep trouble here! The only possible escape route that I can see is the issue with the option period “If Alvin agrees with the offer and responds within a week …”

    What do you think?

    May 26, 2020 at 6:38 pm #571886
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 3
    • ☆

    Can I know how to distinguish counter offer and request for information?
    Why this one is request for information?

    May 26, 2020 at 8:43 pm #571892
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    If you say (something like) “Is it possible to ….” then that would be a request

    If you say (something like) “I can’t afford £2,000. I’ll pay you £1,800” then that would be a counter offer

    OK?

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