1) Advise Amanda and Tracy as to their rights and obligation. 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
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Communication of Acceptance Acceptance must be communicated by the offeree or somebody who is authorised by the offeree. Operation of Postal Rule When contracting parties are bargaining at a distance‚ typically via mail‚ problem may arise because the parties could not know at the same time whether they had formed a contract. Therefore‚ a general rule indicating the time of an effective acceptance was established. The postal rule was created for convenience and certainty. It is an exception
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a unilateral contract. 2. Must acceptance of an offer of a unilateral contract be communicated to the offeror? 3. What are the arguments for contending that an offer of a unilateral contract may not be revoked once acceptance has commenced? Self-Test Questions - Acceptance 1. Define acceptance. 2. Explain what is meant by a counter-offer. 3. What is the general rule concerning communication of acceptance? 4. What is the postal rule? 5.
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contract including offer‚ acceptance and rejection. The first issue is whether the email sent by Amanda to Tracy on 11 April is an offer or invitation to treat. An offer is a definite promise or proposal to be bound on specific terms and it has to be definite
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To form a contract‚ it usually requires offer and acceptance. Acceptance is an expression by words or conduct of assent to the terms of the offer. It shall be clear‚ unequivocal and unconditional as prescribed by the offeror. It is a moment when contract exist (that there is consensus ad idem). The general rule of acceptance is been stated in the case of Entores Ltd v Miles Far East Corporation‚ Lord Denning claims that an acceptance does not usually valid until it is reached to the knowledge of
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Montefiore applied for shares in the hotel company. He had not received any news before he received a letter of acceptance after 5 months. By the time he refused to accept the shares‚ the hotel claimed him for a bleach of contract. The court held that the offer to buy the shares had lapsed because of unreasonable delay in accepting. Revocation An offer can be revoked at any time before its acceptance. Which means even the offer is promised to be opened‚ the offeror is able to revoke the offer before the
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and the acceptance can be delivered via cyber communication such as telex instead of writing or face-to face methods. The formation of an contract generates as the acceptance is received. Therefore an electronic contract may be formed via emails‚ as long as all the necessary elements of a standard contract are established (Hill 2001). Postal
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contract‚ requires four elements; an offer‚ the acceptance of that offer‚ the intention to be legally bound‚ as well as consideration. Referring to the case of Affin Credit (Malaysia) Sdn Bhd v Yap Yuen Fui‚ the lack of an offer and acceptance will cause an agreement to be declared void from the beginning. In this particular case‚ although there was a valid offer and the intention of both parties to be legally bound‚ neither an absolute acceptance nor consideration had passed between the Bank and
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contractual agreement is said to exist when a valid offer is followed by a valid acceptance. • Sometimes people will negotiate to try to gain something different from what is first offered. This may make it difficult to know exactly when a contract is formed and when legal obligations begin. Components necessary for contract formation • 1. An OFFER- a promise to be bound on specific terms • • 2. An ACCEPTANCE- an unqualified agreement to those terms • • 3. CONSIDERATION- which means that
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is an agreement between two or more parties‚ is enforceable at law. Once the contract is formed‚ those parties need to abide their promises. The essential elements of a contract include offer‚ acceptance‚ consideration and intention to create legal relations. In this case‚ it mainly covers offer‚ acceptance‚ and consideration‚ and others are presumed to be presented. First of all‚ we first identify whether the advertisement posted by Alan is an offer or is just an invitation to treat. In the advertisement
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