...for any price is a valid offer. One of the requirements of a valid offer is that the offer must be clear in meaning. Section 30 of the Contracts Act 1950 also provides that agreements are void if there is uncertainty in the meaning or when the meaning is capable of being made certain. In Ahmed Meah & Anor v Nacodah Merican, the defendant promised to build a ‘suitable house’ upon the marriage between plaintiff and the defendant’s daughter as a gift to them. The plaintiff sought for specific performance of the agreement but it was held that the agreement cannot be enforced as the promise is void for uncertainty. This is because the ‘suitability of the house’ was uncertain to the nature as well as the value of the house to be built. In the present case, Shaggy’s statement that he is willing to pay any price for the display case is too vague to be constituted as an offer. What is the range of value represented by the term ‘any price’? Would RM 1.00 suffice? What if the price is beyond his financial capability? An offer has to be unequivocal and clear. It could then be deduced that his statement was to induce Freddie to offer him the display case as well as to show Shaggy’s mere expression of willingness to enter into negotiations. Subsequently, Freddie was the one who actually offered to sell to Shaggy the display case at the price of RM 160,000.00. The second issue in this case is whether Shaggy’s silence can amount to an acceptance of Freddie’s offer of the display case, hence...
Words: 1160 - Pages: 5
...(offeree) for acceptance, and which becomes legally enforceable if accepted by the offeree. A explicit proposal to contract which, if accepted, completes the contract and binds both the person that made the offer and the person accepting the offer to the terms of the contract. http://www.duhaime.org/LegalDictionary/O/Offer.aspx Terms and conditions under which an offer is made, such as quantity, price, discounts, delivery date, shipping costs http://www.businessdictionary.com/definition/offer.html Acceptance of an offer is the final and unequivocal expression of assent to another's offer to contract. http://www.duhaime.org/LegalDictionary/A/Acceptance.aspx "Acceptance means the signification by the offeree of his willingness to enter into a contract with the offeror on the terms offered to him by the latter. Without an acceptance there can be no contract ...." "In the ordinary case ... there is a manifestation of willingness to be bound by one party followed by a manifestation of an assent by the other by words or conduct, generally and usefully called offer and acceptance." "Each of (these) definitions contemplates a willingness, either in words or by conduct, to be bound by the terms of the offer. But each definition also entails a manifestation, or a signification, or an indication of such willingness." Book 9(1) of Halsbury's Laws of England, 4th Edition (2007) “termination of offer”, and can happen in a number of ways, for a variety of reasons. Termination of offer is different...
Words: 1181 - Pages: 5
...Rules of offer and acceptance in a contract Offer and acceptance are elements required for the formation of a legally binding contract: the expression of an offer to contract on certain terms by one person (the "offeror") to another person (the "offeree"), and an indication by the offeree of its acceptance of those terms. The other elements traditionally required for a legally binding contract are (i) consideration and (ii) an intention to create legal relations. Offer and acceptance analysis is a traditional approach in contract law. The offer and acceptance formula, developed in the 19th century, identifies a moment of formation when the parties are of one mind. ------------------------------------------------- Offer[edit] Treitel defines an offer as "an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed", the "offeree".[1] An offer is a statement of the terms on which the offeror is willing to be bound. It is the present contractual intent to be bound by a contract with definite and certain terms communicated to the offeree. The expression of an offer may take different forms, such as a letter, newspaper advertisement, fax, email and even conduct, as long as it communicates the basis on which the offeror is prepared to contract. Whether the two parties have reached agreement on the terms or whether a valid offer has been made is an issue which...
Words: 2902 - Pages: 12
...Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. An offer is an indication by one person to another of their willingness to contract on certain terms without further negotiations. A contract is then formed if there is express or implied agreement. A contract is said to come into existence when acceptance of an offer has been communicated to the offeror by the offeree. One party, the offeror, makes an offer which once accepted by another party, the offeree, creates a binding contract. The Key concepts in relation to offer and acceptance include the distinction between an offer and an invitation to treat, The case of Carlill v Carbolic Smoke ball co. is...
Words: 1755 - Pages: 8
...about offer and acceptance of negotiating an agreement. The issue is that whether Samuel had accepted the wireless router when he opened the parcel of the wireless router. Legal principles An offer is a definite promise made by the offeror to the offeree who is a specific person or some specific persons with the intention of the offeror to be bound if certain specified terms are accepted. Invitation to treat is that a person invites the other parties to make an offer. A person making an invitation to treat is just inviting offer rather than making offer. Where a person accepts the terms of the invitation, he makes an offer but there is still no contract. The maker of the invitation is free to accept or reject the offer. An acceptance is an unconditional expression of the offeree’s assent to the terms of the offer and thus an agreement is made. Acceptance cannot be deemed or assumed. Silence is not an acceptance. Acceptance is effective and valid only from the moment it is actually communicated to the offeror by the offeree or the latter’s duly authorized agent. Once the acceptance is communicated, an agreement is concluded. (Powell v. Lee (1908)) Counter offer is the rejection by the offeree of the terms of offer. If offeree accepts the offer but adds certain conditions with the terms & conditions of the initial offer, it does not constitute an effective acceptance. In fact, it is a counter offer. The effect of a counter offer is the rejection of the original offer and making...
Words: 833 - Pages: 4
...Distinguish between acceptance and counter offer. STEP 1 INTRODUCTION • First, you have to define the keywords in the question. Define acceptance and counter offer. STEP 2 GENERAL PRINCIPLES OF LAW • Explain the relevant general rules ie sections and cases, the most appropriate to your question. • Explain section 2(b) of the Contracts Act 1950 that relates to what acceptance is. • Explain section 3 of Contracts Act 1950 which tell you on how to communicate an acceptance. • Discuss section 7(a) of Contracts Act 1950 on acceptance must be absolute and unqualified. • The above sections are the major relevant sections for your answer. • Next, you have to discuss on the cases. • Give the full facts and held by Court if possible. If not, try to provide brief idea on the decided cases that come across your mind. A simple illustration will help you to have replacement marks by the lecturers. • As for the above question, the most relevant cases are Felthouse v Bindley and Carlill v Carbolic Smoke Ball. • You need to distinguish acceptance and counter offer. • You need to explain the effect of counter offer as has been decided in the case of Hyde V Wrench. The effect is new offer may exist. Original offer is rejected. STEP 3 CONCLUSION • The final stage will be a brief summary on what have you provided at step 1 and step 2. For example: “As a conclusion, acceptance must be absolute...
Words: 297 - Pages: 2
...with the presence of (Offer, Acceptance, Intention and consideration) four essential elements. Essential Elements are as under; 1. Offer(proposal) It is starting point from where an agreement gets life formally which ultimately may take the shape of a legally binding contract. Offer means the formal expression of intention or willingness of one party to another to do or to refrain from doing an act in order to obtaining the assent of the other party to such act or omission. When one party signifies his willingness to other party in order to take consent of that party regarding any dealing, the party expressing such willingness is said to make an offer and he is called the offeror and the person to whom it is made is called the offeree . So it is clear that, the offer must be communicated to the other party; Offer can be revoked at any time prior to acceptance. In this point we have to keep in mind that some kinds of transactions involve a preliminary negotiation in which one party invite the other to make an offer. Such a stage is called invitation to treat. Such primary negotiations are the way to reach a stage to make an offer. It is now well settled that negotiations to enter into a contract can amount to an invitation to treat but not an offer. 2. Acceptance Once offer has accepted it becomes contract. When the person to whom an offer is made signifies his assent thereto the offer is said to be accepted. Thus the essence of the acceptance is the assent or consent...
Words: 582 - Pages: 3
...Part A: Question 1 Step 1: The legal issue of this case is to establish if there are legal intentions and also consideration that is required for contract. Step 2: An agreement is a compilation of acceptance and offer that both parties are able to agree on. An agreement is not able to form without the two components. An offer must be concise to the extent where it may be easily be approached to the other party to contract, which make the offer a legally binding document. An offer must be completed thoroughly and promissory, only then it can be considered an offer. A completed offer is defined as both party had come to an agreement and both parties understand the term and condition of the offer. The other feature of a completed offer is that the offer must be promissory, which is to say that if one of the both parties are unwilling to live up to the promise the promise is said to be illusory because it does not show that there are any changes in the context of the contract. In addition illusory promise cannot be enforced if there are no changes in the context of the contract(Lambiris 2010 pg 38). In the case of Placer Development Ltd v Commonwealth(1969)121 CLR 353, a subsidy would be paid to companies who imported timber into the country which is Australia by the commonwealth government. The Government did pay the importers the subsidy for a period of time but stopped for an unknown reason. Placer had imported a sum of timber and wants the government to pay...
Words: 3252 - Pages: 14
...Leecher claim for the prize money? 2. Principles (i) Offer An offer is a legally binding promise made by one party (the offeror) to another party (the offeree). Once offers have been accepted, offeror cannot revoke it. The advertisement Darebin City Council posted is an offer can be made to the world at large and is able to be accepted by anybody in the word. In other word, this advertisement is also a unilateral contract is a contract where the offeror makes an offer to the offeree in return for an act. Followings are examples of a unilateral contract which courts agreed. * Advertisement that amount to an offer made to the whole world at large; * Offers of rewards; (The major precedent is the R v Clarke case ) * Acceptance. (ii) Acceptance of the offer: The act of acceptance will occur when the offeree performs acts that are consistent with the terms of offer. Only when both parties have given their mutual consent does the law consider a binding legal contract to have been formed. Performance of an act (unilateral contract) is a method of acceptance. Importantly, silence and ignorance of the offer are not included in acceptance. In this case, Leecher’s ignorance of the offer cannot be included in an acceptance so there is no contract between him and Darebin City Council. 3. Application (i) Wacko and Darebin contract: There was an offer made by Darebin Council and this offer...
Words: 935 - Pages: 4
...Principle 1: People have categories of judgment by which they evaluate persuasive positions. Within the latitude of acceptance is contained all the positions on a particular topic that we find acceptable. Within this latitude there is one special position called the “anchor.” This is the single position that a person finds the most acceptable of all. It may be the most extreme position (“absolutely essential”), but the anchor could also be a milder position (“highly probable”). At some border point, a person will no longer accept some position, but will not reject it either. This is the latitude of non-commitment. This contains things about which there is no real opinion. As the discussion moves out of the latitude of non-commitment, there...
Words: 1620 - Pages: 7
...contain the three main parts that is, agreement and legal intention, consideration. Firstly, whether it is an agreement only if there is a valid offer followed by a valid acceptance and communicated to offeree, which can made in writing, orally or conduct (Carlill v Carbolic Smoke Ball Company). Secondly, whether there is a legal contract if the parties intend their agreement to be legally binding, it bases on the presumption that in commercial or business agreements parties did intend to create legal relation (Edwards v Skywards Ltd [1964] 1 WLR 349). Thirdly, whether the party pays something for value (consideration) in return to have the promise from another party (Cooulls v Bagot's Executor and Trustee Co Ltd (1967) 119 CLR 460). Application: Ms. Square talked about the development of IGA supermarket with Mr. Power on December 31.In January, Ms. Square receives a letter from Mr. Power, which explaining his "committed intention" to lease a space for Ms. Square to develop a IGA supermarket. He wrote he will prepare the formal contracts to rent for the development space they have spoken and the rental to be agreed by his lawyer in 3 months. Ms. Square wrote a later back immediately and agreed the offer. Based on the action between Ms. Square and Mr. Power, she has agreed the offer, which made by Mr. Power. On the other hand, this offer is a business agreement between them. Although they didn't mention about the legal intention, they are suppose that both of them did intend...
Words: 512 - Pages: 3
...two elements – one offer and the other acceptance. Thus offer is the foundation of any agreement. “When one person signifies to another his willingness – 1 to do or to abstain from doing anything, 2 with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.” The person who makes an offer is called “Offeror” or “ Promisor” and the person to whom the offer is made is called the Offeree” or “Promisee”. Example Mr. A says to Mr. B, “Will you purchase my car for Rs.1,00,000?” In this case, Mr. A is making an offer to Mr. B. Here A is the offeror and B is the offeree. Essentials elements of an offer:- (1) There must be two parties. (2) The offer must be communicated to the offeree. (3) The offer must show the willingness of offeror. Mere telling the plan is not offer. (4) The offer must be made with a view to obtaining the assent of the offeree. (5) A statement made jokingly does not amount to an offer. (6) An offer may involve a positive act or abstinence by the offeree. (7) Mere expression of willingness does not constitute an offer. A tells B’ that be desires to marry by the end of 2008, if does not constitute an offer of marriage by A’ to B’ A further adds will you marry me. Then it become offer. Legal Rules as to valid offer:- 1. Offer must be communicated to the offeree: The offer is completed only when it has been communicated to the offeree. Until the offer is communicated, it...
Words: 3554 - Pages: 15
...3.0 Acceptance 3.1 Definition of acceptance Acceptance is an express actor implication by conduct that manifests assent to the terms of an offer in a manner invited or required by the offer so that a binding contract is formed. The exercise of power conferred by an offer by performance of some act. The act of a person to whom something is offered or tendered by another, whereby the offered demonstrates through an act invited by the offer an intention of retaining the subject of the offer. According to law of contracts, acceptance is one person’s compliance with the terms of an offer made by another. Acceptance occurs in the law of insurance when an insurer agrees to receive a person’s application for insurance and to issue a policy protecting the person against certain risks, such as theft. 3.2 Requirement of acceptance 3.2.1 Absolute and unconditional Acceptance must be absolute and unconditional. An acceptance must be unconditional and unqualified. Accepting an offer with conditions, varitions and reservations amounts to counter offer and rejection of gthe origional offer. A variations or alteration, howeer, small of the offer, will make the acceptance invalid. According to case Hyde v Wrench [1840] EWHC Ch J90 is a leading English contract law case on the issue of counter-offers and their relation to initial offers. In it Lord Langdale that any counter-offer cancels the original offer. 3.2.2 Normal and reasonable Acceptance must be normal and reasonable. Acceptance...
Words: 397 - Pages: 2
...sue her for breach of contract. This legal issue is that whether there are both valid offer and acceptance bringing Cindy into a legally binding contract and the display of handbag in Lam’s shop is either an offer or an invitation to treat. A legally binding contract requires five essential elements, which are offer, acceptance, consideration, intention to form a contract and capacity. Where all these elements are present, a legally binding contract comes into effect. An offer is an expression of willingness by a person to contract on certain terms which must be clear and capable of acceptance by another person. It can be made in any form by the offeror and should be communicated to the offeree to become effective. But what words are used is unimportant. Invitation to treat is simply an expression of willingness to enter into negotiations which, it is hoped, will lead to the conclusion of a contract at a later date. Generally, a statement to a specific person usually constitutes an offer. Meanwhile, a statement such as general advertisement or a display of goods is usually an invitation to treat because it is made to a very large group of people. An acceptance is a final and unqualified expression of assent to the terms of the offer, which may be in forms of writing, oral expression, electrical means or conduct. There are several established rules on acceptance. One of them is acceptance must be communicated to the offeror. In Pharmaceutical Society of Gt. Britain v. Boots...
Words: 1393 - Pages: 6
...Orlex, and the offerees are Bedlox and Redlox. Acceptance Acceptance of the offer brings it to an end and creates an agreement between the parties. Tieitel defines acceptance as “a final unqualified expression of assent to all the terms of an offer” for an objective existence of acceptance there should be an awareness of the offer (Taylor v. Laird [1856] 1 H&N 266) and the offer should be present in the offeree’s mind (R v. Clarke [1927] 40 CLR 227) acceptance must match the terms of the offer precisely this is called as the “mirror image rule” according to this always the acceptance should be the mirror image of the offer which means acceptance should agree to all the terms of the offer. (Butler machine tool co. V. Ex-cell-o corporation [1979] 1 WLR 401. Redlox, Bedlox and Orlex “An offer is an expression of willingness to contract on certain terms made with the intention that a binding agreement will exist once the offer is accepted”. These are bilateral offers as the offers are made to identifiable bodies not to the world at large. (Carlill v. Carbolic Smoke ball Co. [1893] 1 QB 256) The offer must be definite (Loftus v. Robets [1920] 18 TLR 532) in this case both the offers are definite because it states the amount and the cost per annum clearly. In the case of Orlex’s offer the offer had been terminated by Redlox. Redlox has counter offered Orlex by changing the amount to 8000 pounds. This will be considered as a new offer. Termination can also be in a way of accepting...
Words: 818 - Pages: 4
