In order to advise Amanda and Tracy, determining whether there is a contract between them is needed. To form a contract, offer, acceptance, consideration and intention are required.
An offer is a definite promise or proposal made by the offeror to the offeree with the intention to be bound by such promise or proposal without further negotiation. An invitation to treat is not an offer, but a statement or expression made by a person to invite offers for consideration. With reference to Gibson v Manchester City Council [1979], the Council was running policies of selling council houses to the occupants, saying that they may be prepared to sell the house and require the occupants to …show more content…
Refer to Byrne & Co v Leon Van Tien Hoven & Co [1880], Lindley J ruled that an offer is only revoked by direct communication with the offeree, and that the postal rule does not apply in revocation. On 14 April 2016, the letter of Tracy’s revocation of offer arrived to Amanda, before Amanda checking her voicemail which means Amanda had no knowledge about the way if acceptance stated. Amanda would not have transferred money to the bank account, no acceptance had been made before the revocation letter arrived. Therefore, revocation of offer was received by Amanda before the acceptance was made. The offer made by Tracy was …show more content…
Since the letter had never arrived, there would be no revocation of offer. Amanda would have the right choose whether to accept Tracy’s offer. If Amanda wanted to accept, then she had to perform the way of acceptance stated which was to transfer money to the bank account. Then, a legally-biding contract would be concluded. Parties violated the contract could be sued by the other parties. If Amanda did not perform the way of acceptance stated, there would be no contract concluded.
b) Due to a problem with the mobile network on Amanda’s phone, the voicemail left by Tracy on 12 April 2016 was not recorded and Amanda had no knowledge of the voicemail.
Referring to Adams v Lindsell [1818], an offer is operative up to the point when it arrives at the offeree’s premises. As Amanda had no knowledge of the voicemail, there was no communication of offer. Therefore, there was no offer. Letting behind directly was Tracy’s letter which is originally for revocation would become a rejection to Amanda’s invitation. Since there is no offer and Tracy had no intention to sell the handbag to Amanda, thus no contract was concluded.
c) Instead of Amanda sending an e-mail to Tracy on 11 April 2016, on Sunday 10 April 2016, Tracy has asked Amanda if she wanted to buy her