Formation of a Contract
Formation of contract
The green van
Hubert’s initial e-mail is merely an invitation to treat, demonstrating only a willingness to negotiate rather than an intention to be bound by acceptance. The response from Philip to Hubert’s preliminary enquiry about the green van is, however, clearly an offer. There is intention to be bound by acceptance, demonstrated by the expression “when do you want it?”, combined with identification of the essential elements – the price (£30,000) and the subjects (the green van). There is an added complication in that Philip seeks to confirm the date of delivery. It could be argued that the parties are still in negotiation, requiring a further counter-offer from Hubert before putting matters in a state where simple acceptance would form a binding contract. However, all the essential elements of a contract of sale are contained in the offer, and it is suggested that acceptance would form a binding contract of sale despite lack of agreement on an item of detail .
Hubert delays in sending acceptance, and there is potentially an issue of implied revocation of the offer due to lapse of a reasonable time given that Philip made him aware of the popularity of that particular model. However, Philip also said he would “keep it for him”, suggesting that he would hold the van for a longer period than normal. This issue cannot be fully resolved without more information, as it will depend on a number of factors, such as the usage of the trade and the market for such vans at the time , of which the question does not mention. Philip’s assertion that the model was particularly popular will not necessarily be conclusive, as it may be mere puff in an attempt to illicit a quick response from Hubert: lapse of an offer after a reasonable time is a matter to be “solved by the standard of a reasonable observer, rather than the secret whims of the parties” .
While the timing of the acceptance is not particularly at issue other than for the purposes of
The green van
Hubert’s initial e-mail is merely an invitation to treat, demonstrating only a willingness to negotiate rather than an intention to be bound by acceptance. The response from Philip to Hubert’s preliminary enquiry about the green van is, however, clearly an offer. There is intention to be bound by acceptance, demonstrated by the expression “when do you want it?”, combined with identification of the essential elements – the price (£30,000) and the subjects (the green van). There is an added complication in that Philip seeks to confirm the date of delivery. It could be argued that the parties are still in negotiation, requiring a further counter-offer from Hubert before putting matters in a state where simple acceptance would form a binding contract. However, all the essential elements of a contract of sale are contained in the offer, and it is suggested that acceptance would form a binding contract of sale despite lack of agreement on an item of detail .
Hubert delays in sending acceptance, and there is potentially an issue of implied revocation of the offer due to lapse of a reasonable time given that Philip made him aware of the popularity of that particular model. However, Philip also said he would “keep it for him”, suggesting that he would hold the van for a longer period than normal. This issue cannot be fully resolved without more information, as it will depend on a number of factors, such as the usage of the trade and the market for such vans at the time , of which the question does not mention. Philip’s assertion that the model was particularly popular will not necessarily be conclusive, as it may be mere puff in an attempt to illicit a quick response from Hubert: lapse of an offer after a reasonable time is a matter to be “solved by the standard of a reasonable observer, rather than the secret whims of the parties” .
While the timing of the acceptance is not particularly at issue other than for the purposes of