Essay: Contract law problem question

In order to set up an enforceable contract there must be an offer which is accepted prior to any revocation of that offer. In this case there definitely has been one enforceable contract formed for the 1984 Fiat X/19 motor vehicle and that is between Brenda and Claire. To find out whether their has been a successful contract formed between Claire and Andrew can only be found out by using the rules of offer and acceptance by analyzing them parallel with the facts of their negotiations.

It is fair to say and easily understood from the facts that due to Davids offer and then Brenda’s rejection of his offer a day later that a contract has not been formed, so it would be a squander of time arguing for or against any potential success with regards to any potential legal action between the two parties. If the facts of this case are to go to court with regards to Brenda and Andrew it is important for Brenda to understand that her case may be decided in a case law situation. This ultimately means that alike cases are treated alike and the possibilities of Brenda winning her case is to show that there are cases that have established ratios (principles) and obiter dicta’s (something said in court) through past decisions to give her a higher possibility of winning her case. Provided here are some cases for and against Brenda’s circumstances. In addition, some ideas to strengthen Brenda’s case but with no guarantees of success.

In order to find an agreement in a case involving a contract it is essential to establish an offer complied with an unconditional acceptance. This procedure can be followed by phases of negotiations in correspondence of offers, counter offers and invitations to treat. Whether there has been an offer accepted relies on the behavior of the parties which can be judged by examining the interpretations of their words and their intentions to create a legal relationship. To find out does the communication between the parties value to an offer there has to be a differentiation between an offer and an invitations to treat. It is a common rule that advertisements are invitations to treat and not an offer. By comparison an invitation to treat is where one party (Brenda) invites other parties (Andrew, Claire and David) to make an offer to buy. The acceptance is then complete when the the advertiser (Brenda) agrees to the price the offered to pay for your sale of goods. An example of an invitation to treat is clearly shown in the case of Gibson v Manchester City Council (1979) UKHL, the claimant Mr Gibson sent an application form to purchase a council house from the defendants Manchester City Council. Upon writing writing back to Mr Gibson they stated that they may be prepared to sell the house for $2,100 (invitation to treat). After a negotiation period Mr Gibson wrote back to the council asking to carry on with the purchase as by his application. The council informed Mr Gibson that he could not buy the house and would not proceed with the sale. For the aforementioned reasons Mr Gibson brought legal proceedings stating that the price was an offer which he had accepted. “The House of Lords ruled that the council had not made an offer; the purchase price was steps in the negotiations for a contract and only amounted to an invitation to treat. Its purpose was simply to invite the making of an offer through his application in which the council do not have to accept. This case has shown that Brenda’s advertisement is an invitation in the eyes of the judges but what it also shows is that Brenda’s price was nothing but an offer to negotiate further. Upon that if Manchester City Council can inform Mr Gibson’s that he cannot buy the house after his invitation to treat, then can Brenda inform Andrew that his invitation to treat is no longer valid regardless of being sold or not?

However, on behalf of Andrew it could argued that your invitation to treat was no longer of that kind but now an offer in which Brenda stated that the car could be sold for $450 from$500 to Andrew as a gesture of good will and that he could make the purchase anytime from when he received the email on Tuesday up until 12pm Friday afternoon.

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