First of all, in our case Arthur decides to sell his car putting a notice in his rear window of the car door. This action represents an offer not an invitation to treat. An offer is when one party makes an agreement setting out the terms of the contract and other party accepts an offer. An offer is clearly differentiated from invitation to treat in the case of Pharmaceutical society of Great Britain v boots 1953 where the pharmaceutical tries to sue boots for the sale of a flick knife in a shop window. The court held that this was not an invitation to treat but it was an offer.
On Monday, Brenda phones Arthur and offers to buy the car for 4000 which Arthur refuses to sell because the original price was 5000 not 4000. Brenda has made a counter offer which Arthur didn’t accept but later that day; Brenda leaves a voice mail and offers Arthur to buy his car for 5000. Brenda primarily made a counter offer which was refused and this meant that the original offer was terminated. The new offer Brenda made of 5000 was not yet been accepted by Arthur and had no legal obligation to sell his car to Brenda. The legal case study of Hyde v Wrench (1840) is a perfect example to this point where the defendant offers to sell his farm to the claimant for £ 1000 the claimant replied and offered £950 but the seller refuses the offer and later on claimant attempted to buy the farm for £1000. The decision was held that offer made by seller of £1000 was no longer open because the counter offer had an effect of the original offer.
On Tuesday morning, Charlie sees Arthur’s car and writes to say that she accepts the offer price of £5000 and enclose a full price cheque of £5000 and
References: Jones, L. (2013). Introduction to business law Oxford University Press Elliott, C., & Quinn, F Elliott, C., & Quinn, F. (2011). Contract law Longman. https://www-dawsonera-com.libaccess.hud.ac.uk/readonline/9780203864234/startPage/20Case Study Table: Pharmaceutical society of great Britain v boots (1953) Hyde v Wrench (1840) Yates Building Co ltd v Pulleyn & son ( 1975) study of Adams V Lindell (1818) Poussard V Spiers (1876) Lucy Jones Supply of Good and services Act( 1982) Schuler AG v Wickman Machine Tool sales Ltd (1973) Bettini V Gye (1876) Hong Kong Fir Shipping Co Ltd v Kawasaki kisen kaisha (1962) Smith v Eric s Bush (1989) Mitchell v Finney Lock seeds (1983) Office of fair trading v Abbey national plc. 2009 Forster & son ltd v Sugget (1918) and Morris Ltd v Saxelby (1916) Lewis v Avery( 1972) McRae v Commonwealth Disposals (1951) Countrie v Bolt Burdon (2004) Scott v Coulson (1903) Raffles v Wichelhaus(1864) King’s Norton Metal Co Ltd v Edridge (1897) Hartog v Colin and Shields (1939)