Offer and Acceptance Q&A
These are the Contract Law Questions and Answers. This set of law notes is for Offer and Acceptance. You will find many model answers to the types of questions you may encounter in your coursework or exams. The answers provided are in a simple format to help students understand how to answer both essay questions and problem question using the principles of Contract Law namely Offer and Acceptance. These notes will show as student how law essays should be tackled and how advice should be given in a simple form.
Question 1
On 9th December 2009, Abdul placed a notice on the University noticeboard as follows:
“Second-hand computer. Good condition. Worth £1,000. Selling for £175. Will sell to the first person to notify me by 13th January 2010. Telephone: 020 7320 9876. Email abdul0231@xyz.com Address: 1A, High Street, New Town, London E1.”
Samson posted a letter on 8th January 2010, by first class recorded delivery post, agreeing to buy the computer for £175. Owing to the negligence of the Post Office, the letter was delivered to Abdul only on 14th January 2010.
Diana read the notice, telephoned Abdul on 12th January and left a message on his answer-phone, agreeing to buy the computer for £175. She also asked whether she could pay for the computer when she received her student loan money. Abdul listened to this message only on 14th January.
Maggie sent an email on 10th January, agreeing to buy the computer for £175. Abdul read the email on the 12th and sent a reply to Maggie, giving her an appointment to collect the computer on 16th January at 8 pm. Maggie responded by email, saying that she would pay the money when she collects the computer.
On 16th January, a leading computer shop in London decides to do a clearance sale and is selling good, brand new computers at £150 each.
Samson, Diana, and Maggie no longer wish to buy Abdul’s computer.
Advise Abdul whether Samson, Diana and Maggie are under a contractual obligation to buy his computer.
Question 2
On Monday, Golden Antiques places the following advertisement on their website: ‘For sale, three Victorian style beds, gorgeous, £5000 each, cash, will brighten up any bedroom!’
David, the manager of White Halls Ltd. Email Golden Antiques, immediately replies: ‘White Halls Ltd. Will buy all three beds at £4500 each, please advise if credit facility is available’.
On Tuesday morning, Golden Antiques replies by email to say, ‘We are not prepared to sell for less than £5000 each. Credit facility only available if your grantor is acceptable to us. Please confirm by close of business today if interested’.
On Tuesday afternoon, David faxes Golden Antiques to say he is willing to accept their original terms and will buy all three beds at £5000 each. He also faxes a letter he receives from Black Halls Ltd. (the guarantor) which states: ‘It is our policy to ensure that our subsidiary, White Halls Ltd., remain solvent at all times”. However, the fax was not properly transmitted, as indicated by the status report. David then posts a letter at 5pm accepting Golden Antiques’ terms on Tuesday evening, although he knows there is a postal strike that day.
Roger, an accountant, telephones Golden Antiques on Wednesday morning stating that he wants to buy Victorian beds. He persuades the manager of Golden Antiques to sell the beds to him, on the basis that he had prepared the financial accounts for Golden Antiques the year before for half the fee he normally charges. Golden Antiques agrees to sell to Roger, so they send David a fax on Wednesday evening saying that the beds are no longer available for sale.
Golden Antiques receive David’s letter at 3.45pm on Thursday. David does not read the fax from Golden Antiques until 4.00pm on Thursday.
Advise the parties as to their legal positions
