Hey please help me ! I've been having problems with this question and I don't know if its accurate
The question is as follows :
Paulawrites to Cory and Lisa telling them that she is offering her pet Doberman forsale at $5,000. "If you wish to buy" she writes, "please writeand let me know." Cory writes back telling Paula that she wants to buy thedog but "let's leave the price to be agreed.” Lisa replies that she iswilling to buy the dog for $5,000 but would need to look at it first.Unfortunately, however, Lisa's letter is lost in the mail. Paula replies to Coryagreeing to her terms. Soon after, Paula receives an offer from Karen to buythe dog for $7, 500 and sells it to Karen. Paula has now received anotherletter from Lisa in which Lisa agrees to buy the dog without inspection.
All I want to know is it an offer or an invitation to treat if
Paula writes to Cory and Lisa telling them that she is offering her pet Doberman for sale at $5,000. "If you wish to buy" she writes, "please write and let me know."
And whether Paula can be liable for a breach of contract when she sold the dog to Karen.
Contract Law - Offer and Acceptance- Watch
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- 18-03-2013 16:44
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- 22-03-2013 06:37
What What does Paula want to know in this case: whether she can sell the dog to Karen
Issue: whether there is any contractual relationship with either Cory or Lisa
1. Paula writes to Cory and Lisa
- Invitation to treat? OR offer?
- Probably an offer – since the terms of the statement are clear (i.e. offering her pet for sale at $5000) – Storer v MCC.
- Actual communication is needed. Postal rule will not apply.
clue: “please write and let me know…” – Holwell Securities v Hughes
2. Cory writes to Paula
- **remember: actual comm. Is needed
- Acceptance? – probably not – clue: “let’s leave the price to be agreed”
- Counter-offer – very likely – new term (refer to the above) Hyde v Wrench
-original offer made by Paula is killed (for Cory’s case only!!)
-reminder: maybe no actual comm. Is needed in Cory’s counter offer
3. Lisa replies by letter
- Acceptance? – unlikely – she will probably accept the dog when she thinks the dog is aliright.
- Counter-offer? – very very very unlikely – no new term!
- Enquiry – very very very likely – Steveson, Jacques & Co v McLean
** By the way, you can also argue that if it is an acceptance, no valid acceptance is found in the end since the letter is lost, and actual comm. Is needed.
4. Paula replies to Cory
- * receives Cory’s counter offer
- Replies to Cory agreeing to her terms. à by what method of comm.?
- You may argue: if
-by letter- postal rule will apply – Adams v Lindsell (reasonable – Henthorn v Fraser; any particular stipulation – Holwell Securities)
-email/fax – Paula can reply by email/fax – no disadvantage to Cory (*her offer is made by letter.) – Manchester Diocesan Council for Education v Commercial & General Investments
- Entore v Miles
- by letter – binding contract when Paula send reply to Cory
- by email/fax – not sure – depends when Cory reads the email/fax – maybe no contract yet
5. Paula receives an offer from Karen and sells to Karen
- There is a contract between Paula and Karen
- Referring to no.4 above: if by letter, breach the contract
- If by email/fax (actual comm.): revocation of acceptance?
- Countess of Dunmore v Alexander (Scottish case) à yes
- à No
-A to Z Bazaars v Minister of Agriculture (South African) àNo
- à No
*anyway, if Paula wants to withdraw her acceptance, she shall notice Cory before Cory reads the email/fax
6. Paula receives another letter from Lisa
- Acceptance to Paula’s offer
- However, the offer is lapsed already.
- Lapse of time – Ramsgate Victoria Hotel v Montefiore
- By letter (point no.4 above) – breach of contract if sells to Karen
- By email/fax – may still sell to Karen without breaching the contract
** i hope it helps lolLast edited by plasticyu; 22-03-2013 at 06:39.