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    Contract Law

    Hi, I am having some difficulty deciding in the case below whether there is a contract or not. Can anyone HELP PLEASE

    The QUESTION is: - Advise Olivia, whether or not she must pay for the table? is there a contract? explain ur answer?


    Olivia was the owner of a retail shop selling designer clothes. She decided that she needed to improve the décor of the shop. On Wednesday, during her lunch hour, she saw a solid oak wooden table in the window of an antique shop with a price tag on it of £900. The shop was shut, but Olivia put a note through the letter-box giving her name and address and which said, “Please reserve the table for me. I will call after work tomorrow to pay.”

    On Thursday morning, Penelope read the note and placed a sold sign on the table, removing the price tag. Noel, Olivia’s partner, saw the sold sign on the oak table when he passed the antique shop on his way to see Olivia at lunch time.

    Olivia was unable to call in after work on Thursday and has had second thoughts anyway. Noel has told Olivia about the sold sign. Olivia went back to the antique shop on Thursday night and put a note through the letter-box cancelling the reservation note. The oak table was still in the window.

    On Friday, Penelope sent Olivia a letter, telling her that she is holding her responsible for the table and that she will sue her if she fails to pay.

    Thank you.
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    Im not sure - but i don't believe so as there was no actual agreement between the two parties, although it is very unfair to the shop owner. I do not believe that Olivia has to pay for the table as there was no actual agreement. If this is a real situation not a hypothesis go and ask a lawyer.
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    (Original post by ksl)
    Contract Law

    Hi, I am having some difficulty deciding in the case below whether there is a contract or not. Can anyone HELP PLEASE

    The QUESTION is: - Advise Olivia, whether or not she must pay for the table?


    Olivia was the owner of a retail shop selling designer clothes. She decided that she needed to improve the décor of the shop. On Wednesday, during her lunch hour, she saw a solid oak wooden table in the window of an antique shop with a price tag on it of £900. The shop was shut, but Olivia put a note through the letter-box giving her name and address and which said, “Please reserve the table for me. I will call after work tomorrow to pay.”

    On Thursday morning, Penelope read the note and placed a sold sign on the table, removing the price tag. Noel, Olivia’s partner, saw the sold sign on the oak table when he passed the antique shop on his way to see Olivia at lunch time.

    Olivia was unable to call in after work on Thursday and has had second thoughts anyway. Noel has told Olivia about the sold sign. Olivia went back to the antique shop on Thursday night and put a note through the letter-box cancelling the reservation note. The oak table was still in the window.

    On Friday, Penelope sent Olivia a letter, telling her that she is holding her responsible for the table and that she will sue her if she fails to pay.

    Thank you.
    Does the postal rule apply here? Thats the only thing I can think of, but I can't remember whether it only applies to offer or acceptance, stupid brain, wish I could remember things for longer than a term!
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    why is the owner suing the buyer when she still has the table? and what is the point of noel in that story, does he have any significance?
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    (Original post by JSM)
    Im not sure - but i don't believe so as there was no actual agreement between the two parties, although it is very unfair to the shop owner. I do not believe that Olivia has to pay for the table as there was no actual agreement. If this is a real situation not a hypothesis go and ask a lawyer.
    ----------------------------------------------------------------------

    NO this is not a real situation, its just a case ass. THANKS for ur reply mate, just a few questions for you, if u don't mind!

    what make u believe there was no "actual agreement between the two parties"? are there rules or cases i can wright about?
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    If this is as boring as contract law gets I'm pleased. It is one subject I am dreading concerning law at uni next year lol. It dont seem THAT uninteresting lol ...

    Please leave me in this ignorant bliss - even if this is the highlight of contract law lol ...
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    (Original post by ksl)
    ----------------------------------------------------------------------

    what make u believe there was no "actual agreement between the two parties"?
    The shop owner did not actually agree the sale with her, although it seems unfair. It is implied that there is an agreement, but there was no contract. The lady put a sold sign on the table, but did not indicate who it was sold to. The note gave two different indications, one was of absolute interest "to pay" and one was of some interest "reserve the table for me". Reserving means that the customer would like to buy it, but is not a contract yet. Im sure your books will have something on it anyway and some examples.
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    (Original post by elpaw)
    why is the owner suing the buyer when she still has the table? and what is the point of noel in that story, does he have any significance?
    Because Olivia said she would buy it so the shop owner put a sold sign on the table, so no one else could buy it. If she had not done so, someone may have bought the table.
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    (Original post by Lord Huntroyde)
    Because Olivia said she would buy it so the shop owner put a sold sign on the table, so no one else could buy it. If she had not done so, someone may have bought the table.
    but someone is still going to have the chance to buy it. penelope has not made a loss, has she?
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    (Original post by elpaw)
    but someone is still going to have the chance to buy it. penelope has not made a loss, has she?
    No, but that is why Penelope may feel she has grounds to sue.
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    I thought that the shop owner offered an invitation to treat to the general public. Oliver came forward and offered to buy the table at the price stated on the tag. The shop owner then accepts the offer by removing the price tag and replaced it with a sold sign. So when Oliver comes back to withdraw her offer its too late because the shop owner has already accepted the offer, which means it cannot be withdrawn.

    So is this not a contract?

    Can anyone shed some light on this situation? pls
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    (Original post by ksl)
    I thought that the shop owner offered an invitation to treat to the general public. Oliver came forward and offered to buy the table at the price stated on the tag. The shop owner then accepts the offer by removing the price tag and replaced it with a sold sign. So when Oliver comes back to withdraw her offer its too late because the shop owner has already accepted the offer, which means it cannot be withdrawn.

    So is this not a contract?

    Can anyone shed some light on this situation? pls
    ********************

    Hi KSL,

    I would say that there is no binding contract in this case.

    Although Penelope received the offer to purchase the table, her acceptance was not communicated to Olivia before she decided not to purchase the table (Felthouse vs Bindley). Noel did tell her that the table was "sold" but that was before her decision not to go ahead with the purchase. Additionally, as supported in Felthouse vs Bindley, the communication of the acceptance must at least be communicated to someone authorized to receive the communication of acceptance, which in this case, there was no authorized person mentioned.

    The postal rule will not apply in here since this is a case of a biliateral contract and not a unilateral one (Holwell).

    Correct me if I'm wrong, I'm just taking a shot at this

    Mul
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    Hi Mul,

    Thanks for your input mate. This is very helpful info. The case really helps and gives me some thing to write about and back up with evidence.

    Cheeres Mul
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    Hi everyone, your still all welcome to reply!!!
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    (Original post by ksl)
    Hi everyone, your still all welcome to reply!!!
    Is law at uni good ... too late for me now though i suppose

    what would be a good thing to say at an interview for 'why do i want to study law' ???

    thanx
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    (Original post by *dave*)
    Is law at uni good ... too late for me now though i suppose

    what would be a good thing to say at an interview for 'why do i want to study law' ???

    thanx
    ****************

    Yo Dave,

    I would say that no one is too old to study law. Yeah I mean it might be a bit late if you wanna make a brilliant career out of it considering them youngsters having more experience and all but if you're really interested in it, age shouldn't be stopping you. I'm 30, had my first degree and I'm gunning for my second in law.

    I know this chap, he's 69 and he's just finished he's law degree. Said it was his lifelong dream..

    Never too late man..

    Mul
 
 
 
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