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Business Law Cases

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Submitted By kele19
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Issue- Did an offer exists, which the plaintiff accepted?

Rule of Law- Invitation to treat. An invitation to treat is not an offer in itself but is an invitation to others to make an offer.

Discussion- according to the case, Tom placed an advertisement in the Motor Sports Magazine. Advertising to the public at large. The advertisement stated that the car was for sale, not that the seller would sell to all comers. Chris however saw the offer and was interested in taking the offer stated. However, in an invitation to treat it is also starting point of any negotiations. Chris was aware of the invitation and tried negotiating. In other cases such as “Partridge vs. Crittenden (1968)”, where the appellant inserted and advertisement in a periodical “Bramble finch cocks and hens, 25s each”. Also “Gibson vs. Manchester City Council (1979)”.

Issue- If “A” makes an offer and “B” makes a counteroffer, does the original offer remains open?

Rule of Law- When studied more indepth; a counter offer was also present. A counter offer is said to be an offer made in response to a previous offer by the other party during negotiations for the final contract.

Discussion- The case clearly shows that Tom was offering to sell a Triumph TR6 for $10,000. Chris in reply offered $8000 which the defendant refused and stated that cheque was preferred for advertised amount. The plaintiff then sought to accept the original offer of $10,000. However there was no contract. Where there is a counter offer, this destroys the original offer so that it is no longer open to the offeree to accept. Related cases such as “Hyde vs. Wrench (1840)”. This case simply shows that the defendant offered to sell his farm for $1000 which the plaintiff responded by offering $950. Another case that can be used to justify there was a counter offer is “Stevenson vs. Mclean (1880)”.

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