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Ali is an antique dealer and one Saturday in Nov 2007 he put a vase in the window of his shop with a sign which stated ‘exceptional piece of 19th century pottery – on offer for £500. Ben happened to notice the vase as he walked past the shop and thought he would like to have it. Unfortunately, as he was late for an important meeting, he could not go into the shop to buy it but as soon as meeting ends he wrote to Ali agreeing to buy it for £500. letter was posted on 11.30 am.
on the same day later, Chet visited shop and say he would like to buy the vase at £400 but Ali refuses and would accept it only for £450, but Chet refuses and left. on his journey home Chet realizes that £450 is a very good price and immediately wrote a letter to Ali to buy it. his letter was posted at 12.30pm.
just before closing time at 5pm Di come into the shop and offered to buy the vase for £400 and Ali agrees to sell it and Di promised to return on following Monday with money.
On Monday Ali received both Ben and Chet letter before Di could come and collect the vase and pay.
Required: from point of view of the law of contract advise Ali as to his legal relations with Ben, Chet and Di.
Please help.thanks
Hi
If your real concern is about the “postal rule” forget it. I’m sure that I read recently that the postal rule is never agin likely to be asked – in these days of internet and emails the concept of nipping down to the post office with your letter of acceptance is pretty much consigned to history.
Briefly, Ben – no contract – postal acceptance not an appropriate form in this circumstance
Chet – no contract – refused the counter offer from Ali so now nothing left to accept
Di – yes contract – Di has probably given additional consideration for Ali to accept – she’s agreed to go to get the money. That MAY in fact not be enough to merit the title consideration for Ali to agree to a variation – but is it a variation – Ali doesn’t specify “Cash” and nor does he put a time limit on it
“Di come into the shop and offered to buy the vase for £400 and Ali agrees to sell it” tells me that Di has made an offer and Ali has accepted it. So Di has the vase for 400 GBP
Thanks a lot sir, actually my problem was solving the case and you did it :). But sir I got a BPP new study kit and postal rule is in syllabus of law of contract. Should I not revise it?
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