Preview

Business Law

Good Essays
Open Document
Open Document
638 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business Law
Question 1
The issue of this question is whether Scott and Kyle can bring legal action against Wayne for what they feel is a breach of contract.

Under the law governing offer and acceptance, a valid offer has been made through an advertisement. In order for an offer to be accepted, the party must entirely accept the offer. The rules governing acceptance has to be positive not passive. Silence does not forms acceptance. The general rule of acceptance is that the acceptance must be received by the offeror, otherwise it has no effect. An offer made to a particular person can be rightfully accepted by him alone and in order to avoid complications, acceptance is to be in writing received by the offeror or if it is orally, it must be heard by the offereor.
In applying the law to the facts of the case before us, Wayne has made a valid offer to sell his house for $2 million dollars. In this case, Wayne is the offeror and Scott, Kyle and Magdelene are the offeree. Scott offers to buy the house for $1.8 million dollars and Wayne said nothing. In this case, Scott has now become the offeror and Wayne is the offeree as a counter offer has been made. Looking at the principles of acceptance, an acceptance made must be positive not passive. Wayne said nothing about the offer therefore there was no communication between them of any sort of acceptance. This would highlight that the fact that silence does not form acceptance as per case of Felthouse v Bindly (1862) The offeror cannot impose acceptance just because the offeree does not reject the offer. Therefore, Scott wanting to take legal action towards Wayne is not valid as there was no form of acceptance in either form of writing or orally.
When Kyle came to view the property, he agrees to Wayne’s offer of $2 million dollars but “subject to contract”. Wayne agreed. The definition of subject to contract is that both parties are agreeable to the terms of the offer but propose that they negotiate a formal contract on the

You May Also Find These Documents Helpful

  • Good Essays

    He only asked further information about pricing. In addition, Sullivan did not forward Ball a sales offer just specific details on pricing. A legal mutual agreement was never formed for the selling of the land. Sullivan can use the fax as an offer to purchase in the event that Sullivan decides to sell the land to Ball for $60,000, but Ball can not hold Sullivan to any legal agreement. P.263 9.1…

    • 1459 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Unit 45

    • 826 Words
    • 4 Pages

    To begin with this offer is an invitation to treat as it’s advertised in a newspaper and it’s open to everyone to make an offer. As Bob has refused to pay for the car he does not have to pay or risk any legal actions for being in breach of contract if he refuses to pay. Bob does not have to pay for the car as a contract has never taken place and none of the three requirements took place.Jamal rejected Bob`s first offer.…

    • 826 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Law 421

    • 370 Words
    • 1 Page

    Mary made an offer to Liam and Mike for them to paint her house for $2500. There is no statement on whether or not they verbally accepted her offer which in this case does not make it an agreement. It makes it an offer and since Mary saw Bill’s advertisement, which is considered an offer, and by her calling and making arrangements with Bill’s she accepted his offer.…

    • 370 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    LAW575 Contract Paper

    • 1303 Words
    • 6 Pages

    Danny Davidson sold a single family home to Paul and Priscilla Peterson. A long-term relationship between Danny and Paul is the basis for not including a written agreement. The simple contract was made orally and only included the legal object and the amount to be paid. Danny did not disclose a dispute with his neighbor over boundary lines or include information about a soil subsidence in the front yard he claims not to have known about.…

    • 1303 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Business law

    • 317 Words
    • 2 Pages

    Scott entered into a bilateral contract with Otis in which Scott promised to advertise using the signboard that Otis provided. As a part of this contract Otis is required to change the lettering on the sign within forty-eight hours after receiving written request from Scott. The contract was breached when Otis failed to change the sign. As a result of this breach in the contract Scott was then obligated to pay $1000 dollars to Todd. Scott can recover $500 from Otis which is the $1000 Scott had to pay to Todd less the amount he would have had to pay Perry for pitching a no-hit game.…

    • 317 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In contract law, in order for a contract to exist, one part must make an offer and the other must accept the offer. There are several rules to the accepting of an offer. First, prior to the offer being accepted, the offer may be withdrawn. The offeree must accept the offer, which is the person who was made the offer. Another person cannot accept the offer of their behalf without specific authorization. For example, if a power of attorney exists, another person may be able to accept the offer. If the offer specifies a method in which the acceptance should be given, it must come in that form. For example, if the offeror states that the acceptance must come via fax and no other method is allowed, it is the only form that can be accepted.…

    • 620 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Jack knew that the china at the sale was worth more than the $150.00 he offered the widow for all of it, bringing him a considerable return on his investment. He knew the price of the china was too good to be true so much that he did not attend any other sales that day. Because the widow gave consideration and her consent to the agreement by accepting Jack’s money for the china, this makes this an enforceable verbal contract. While Jack was paying for his items, the widow told him that she was downsizing because she was moving to an assisted living…

    • 775 Words
    • 4 Pages
    Good Essays
  • Good Essays

    As explained in the definition of acceptance provided above, Alex saying he would pay the £11 000 is an unqualified expression of assent to the terms of Betty’s offer. In order to be successful . He would need to prove that he accepted the offer. In this case we must consider the postal rule, which is important in determining whether acceptance has taken place. The postal rules states that “a letter of acceptance provided, that it is correctly addressed and stamped, takes effect when posted.” (Adams v Lindsell). In order for the Postal rule to take effect, it must be found in this situation that it was reasonable to use the post. In this case, because Betty’s offer to Alex was sent by post it can be considered reasonable for Alex to use the same means of communication. Lastly in order for this rule to take effect there must be no exclusion of it in Betty’s offer. By her telling Alex to “let her know” she has been vague regarding the means he should use to respond to her offer. It can be argued that the postal rule was in effect, which means that as soon as he posted the letter, even though she had not received it, placing his acceptance in the post meant that there was a fictional meeting of minds, which concluded the offer and gave effect to the…

    • 989 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Business Law

    • 668 Words
    • 3 Pages

    case brief---Gregory, a comedy writer, entered into a contract with Wessel, a comedian. The contract provided that Gregory would provide Wessel with a 15 minute monologue for his upcoming appearance on the comedy hour and Wessel will pay $250 to Gregory. All performers could make $500 per appearance on the comedy hour. and when Wessel was scheduled to aper on the comedy hour, Gregory informed him that he was unable to provide the monologue, because last time Wessel was asked to make special guest appearances at three local comedy clubs performance during the comedy hour. and Wessel bought lawsuit to Gregory for beach of contract and request damages of $1250.…

    • 668 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Essay #2

    • 995 Words
    • 4 Pages

    The Cleavers receive the Nelsons’ proposal from October 5th and respond via email asking a question regarding the offer for $525,000 with a 15% down payment ($78,500) due upon acceptance of the Nelsons’ proposal. The Cleavers ask the Nelsons how firm they are on the 15% ($78,500) down payment and ask the Nelsons if they would be willing to lower it down to 10% ($52,500). What the Cleavers’ email legally does is put two offers between the parties. An inquiry and alternate offer does not get rid of the original offer, but places an alternate offer alongside of the original one. In other words, the Cleavers are not rejecting the Nelsons’ offer but are rather proposing a new offer without rejecting the last one. This effectively puts two offers between the Nelsons and the Cleavers. Now the Nelsons can choose to accept either one of these offers which would clearly make the remaining offer void. The Nelsons receive the email the same day it was sent and respond by mailing a letter to the Cleavers revoking the offer they made in the October 5th letter for $525,000 with a 15% down payment ($78,500) due upon acceptance…

    • 995 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Theory to practice

    • 794 Words
    • 4 Pages

    Big Time Toymaker (BTT) develops, manufactures and distributes toys and board games. An inventor named Chou created a board game called Strat. Chous invention caught the attention of BTT and they sought out to negotiate with Chou. During the time of communication between both Chou and BTT an agreement was made. Both parties agreed to BTT having exclusive negotiating wrights for a 90-day period in exchange for $25,000.00. The agreement stated that no contract exist unless in writing. After a meeting when an oral agreement was made Chou was emailed a document subject Strat deal by a manager of BTT. This email can be considered the contract in writing and Chou assumed so, later to find that BTT was now run by new management who claimed they were uninterested in his invention.…

    • 794 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Gordon Vs. Hanson

    • 170 Words
    • 1 Page

    Gordon accepted a purchase option from Hanson. An option contract is a contract to hold an offer to make a contract open for a fixed period of time. Gordon and Hanson entered a first-refusal contract that provided that if Gordon decided to sell his house to anyone, Hanson would have an option to buy it for $150,000. The right of first refusal is the right of a party to meet the terms of a proposed contract before it is executed. This type of agreement is understood that without a fixed termination date it is to remain open for a reasonable time, which two weeks is considered reasonable. Hanson's right to buy the house began at the time Gordon decided to sell his house to Jones for a higher price. Gordon violated his contract with Hanson by…

    • 170 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Acceptance - Essay

    • 635 Words
    • 3 Pages

    In the case of Carrie, Antonio and Norvel, Carrie offers to sell Antonio a set of legal encyclopedias for $300.00. Antonio says he has to think about it and will let Carrie know the next day. Norvel, who overheard the offer to Antonio, tells Carrie he accepts her offer. Carrie gives Norvel the encyclopedias in return for $300.00. The next day, Antonio, unaware of the transaction between Norvel and Carrie, accepts Carrie’s offer. Technically Carrie has not breached a valid contract with Antonio, as he had not accepted the terms of the agreement. There was also no contract between Norvel and Carrie formed since Norvel accepted an offer that was originally made for Antonio.…

    • 635 Words
    • 3 Pages
    Good Essays
  • Good Essays

    A contract is an agreement that is either spoken or written and is enforceable by the law. For the contract to be valid and binding, several elements must exist. Execution, mutual promises, parties, and terms of performance are the factors that must exist. There also must be an offer, consideration, acceptance, and mutuality for a contract to remain legally binding and helpful on instances of any breach (Burton 2009). The most important part of the contract is closing the deal. The point of the actual sale of the blue four-door sedan, which Jim and Laura both agreed they liked, would be the close of the deal in this case. After reviewing…

    • 897 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Although prohibition's goal was to a increase sense of integrity in the United States, it encouraged normally law-abiding citizens to break the law, enabled the growth and influence of organized crime, and increased levels of corruption in government and law-enforcement. The purpose of Prohibition was to protect the values sheltered by “Americans” nuclear family (Clark 13). Prohibition in the United States was designed to reduce drinking by eliminating the businesses that manufactured, distributed, and sold alcoholic beverages. Prohibition was supposed to lower crime and corruption, reduce social problems, lower taxes needed to support prisons and poorhouses, and improve health and hygiene in America. Instead, Alcohol became more dangerous to consume; organized crime blossomed; courts and prisons systems became overloaded; and endemic corruption of police and public officials occurred. In 1919, America was torn with the decision of prohibiting liquor from being sold. There were many incentives to do so. However, political officials did not take into account that people would get what they wanted regardless of the law. With prohibition, America was set for an…

    • 4831 Words
    • 20 Pages
    Powerful Essays