Contract law and instantaneous communications - URGENT! Watch

raheelbby
Badges: 2
Rep:
?
#1
Report Thread starter 3 years ago
#1
You have decided to sell two old fridges to allow a kitchen upgrade due to the expansion. The Thairestaurant down the road is run by Tina. You know that Tina is looking for second-hand fridges. Yousend her an email asking her if she is interested in your two fridges for a total of $5,000. Tina respondssaying “Will only pay $4,800. What say you?”

At 9.00am the next morning you send Tina an emailsaying “Okay, good, I can agree on a price of $4,800.” At about the same time Tina sent an email saying“Cancel my earlier counter-offer. I will take the fridges for $5,000 as I need them as soon as possibleand I cannot bother with haggling over the price.”

According to the electronic records
• Tina’s email “in” box received your email accepting the price at $4,800 at 9.40am and shelooked at it at 9.45am.
• You received Tina’s email stating that she was willing to pay $5,000 at 9.30am but you did notlook at it until 10.00am.

Have the fridges been sold, and, if so, at what price?
0
reply
yastyb
Badges: 2
Rep:
?
#2
Report 3 years ago
#2
(Original post by raheelbby)
You have decided to sell two old fridges to allow a kitchen upgrade due to the expansion. The Thairestaurant down the road is run by Tina. You know that Tina is looking for second-hand fridges. Yousend her an email asking her if she is interested in your two fridges for a total of $5,000. Tina respondssaying “Will only pay $4,800. What say you?”

At 9.00am the next morning you send Tina an emailsaying “Okay, good, I can agree on a price of $4,800.” At about the same time Tina sent an email saying“Cancel my earlier counter-offer. I will take the fridges for $5,000 as I need them as soon as possibleand I cannot bother with haggling over the price.”

According to the electronic records
• Tina’s email “in” box received your email accepting the price at $4,800 at 9.40am and shelooked at it at 9.45am.
• You received Tina’s email stating that she was willing to pay $5,000 at 9.30am but you did notlook at it until 10.00am.

Have the fridges been sold, and, if so, at what price?
The Brinkibon case [1982] 1 All ER 293: D, in Austria, made a counter-offer to P, in the UK, which was accepted by telex message. HL held that the contract was within Austrian jurisdiction since, with instantaneous communications, the contract was formed where and when the acceptance was communicated. Lord Wilberforce: telex is instantaneous communication and there is a general rule that contracts formed by instantaneous communication have effect where and when the offer is accepted, and “where it appears to be within the mutual intention of the parties that contractual exchanges should take place in this way”. This is the case here. However the rule is NOT universal: e.g. cases where the recipient is not the principal offeror but a messenger/ agent with limited authority; when the message doesn’t reach the principal immediately, such as a telex message outside office hours; where the machine is operated through 3rd parties; where there is a default at the recipient’s end. In these cases, the point at which acceptance takes effect is determined with reference to the parties’ intentions, sound business practice, where the risks ought to lie etc. i.e. a case-by-case basis.

CW: this draws a distinction between what CW terms “two-way” instantaneous communication i.e. where the “conditions of simultaneity are met”- i.e. where both parties are present and the general rules apply; and “one-way” instantaneous communications where the general rule might not apply if the recipient at the other end is not present to receive the acceptance. She says the courts are moving towards an approach of “when a reasonable offeror would access the message, taking account of all circumstances”. In Texas SS Co Ltd v The Brimnes (1975) the court held that a revocation of an offer, sent by telex, would be effective as soon as it was received on the telex machine if sent during normal office hours to the place of business, whether or not it remained unread. (Notes)

To answer your specific point there's a tug of war between the validity of instantaneous communication on receipt in the mailbox or if it has to be communicated through reading.

Read the notes and decide!
0
reply
asha03
Badges: 1
Rep:
?
#3
Report 3 years ago
#3
If you're a bit stuck with contract law, I have some really good notes that I made and put up online:

http://www.notesale.co.uk/more-info/...tes!-(Level-4)

- FULL SET of Contract Law notes, covers everything you need to know for your exam!
- Notes with colour, mindmaps, flowcharts, key cases, facts and structures for problem solving questions
- All you need to know in one place!
- Fantastic set of notes, as a supplement to your University lectures
- Aimed at first year LLB Law students, sitting exams at Level 4
- Covers all topics in Contract Law, in a compact but user friendly way
- MUST HAVE for students struggling with Contract Law principles
- Applicable for all law students studying for a qualifying law degree

I used these notes and got a 1st! I hope it helps!
It's worth paying a little, for a good grade in one of the most important topics in law.Good luck
0
reply
cl1719
Badges: 1
Rep:
?
#4
Report 6 months ago
#4
What happens when you have a counter offer you send an email cancelling the previous offer and the defendant Claims it was too late
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • Solent University
    Postgraduate and Professional Open Evenings Postgraduate
    Mon, 25 Mar '19
  • Cardiff University
    Undergraduate Open Day Undergraduate
    Wed, 27 Mar '19
  • University of Portsmouth
    Postgraduate and Part-Time Open Evenings Postgraduate
    Wed, 27 Mar '19

Where do you need more help?

Which Uni should I go to? (127)
17.81%
How successful will I become if I take my planned subjects? (73)
10.24%
How happy will I be if I take this career? (123)
17.25%
How do I achieve my dream Uni placement? (103)
14.45%
What should I study to achieve my dream career? (70)
9.82%
How can I be the best version of myself? (217)
30.43%

Watched Threads

View All