Common Law
Assignment
Word count 844
Question one A The issue is it’s unclear whether Jessie is making an offer to sell or an offer simply as a gift as they have been friends for 15 years. In order to determine if a valid offer has been made application of the objective test would be applied1. Would a reasonable person in these circumstances believe there to be a valid offer and what is the relative importance of the statement to each party2? Jessie’s statement made to Ian that he is happy to ‘let go’ of his car with the wording he has used has the potential to make the situation somewhat ambiguous, Jessie’s true intentions are unclear. The statement is not definite and lacks sufficient finality for the statement to be classed as an offer3. Although his wording is uncertain the courts will also look at what context the statement was made and because Ian did state he wanted to ‘buy’ a car for his daughter then the statement can be argued both ways. Jessie then invited Ian to his home to look at the car although there is still no conversation about the sale of the car. This offer doesn’t have terms that are clear and final and therefore the requirement of a valid offer has not been satisfied.
It’s important in deciding if valid acceptance has occurred to acknowledge that acceptance must be clear, absolute and identical to the terms4 in this case Ian in not having full knowledge of the terms has accepted without full knowledge of the offer. He did not communicate acceptance to the offeror Jessie5. Ian in his actions of the visit to Jessie’s house to look at the car and his daughter taking full possession of the car cannot be seen as valid acceptance as Ian acted in ignorance of the offer6
Question 1 B
Ian and Jessie at no point stated that they had any intention to enter into any binding agreement to create legal relations. The court will apply two tests the commercial presumption and