Cora placed an advertisement in a local newspaper, which stated, ‘For sale: racing bike, £800;
gym weights, £400.’ In response, Del sent a text message to Cora: ‘What would you say to
£1000 for the bike and the weights?’ Cora replied, ‘I will think about it but prefer to sell
separately.’
Three days later, when he had not heard from Cora, Del bought a racing bike from someone
else. The day after, Del was surprised to get a message from Cora which read, “I accept your
offer of £1000 for both the bike and the weights. Ring me to arrange collection.” Del told Cora
that he was no longer interested in the bike or the weights.
Referring to the rules on agreement in formation of contract, advise Cora of any rights and
remedies that she may have against Del.
Cora may have a claim under the rules on agreement against Del.
First it must be established whether there is an offer or invitation to treat. The law distinguishes
an offer and invitation to treat.
An offer is a promise showing a willingness to contract on firm and definite terms (Gibson). An
invitation to treat is an indication that one person is willing to negotiate a contract but not
willing to make a legal offer (Partridge). Generally, advertisements cannot be an offer, however
it can be considered as an offer in a unilateral contract (Carlill v Carbolic Smoke Ball). Here
there is a unilateral offer as Cora, who is the offeror, makes the promise of selling the bike and
the weights in exchange for money.
Next it must be proven there was acceptance of the offer. Acceptance is the final and
unconditional agreement to all terms of the offer.
Del’s offer of £1000 for both the bike and weights is a significant difference to Cora’s offer of
the £800 bike and £400 gym weights. Del's response constitutes to a counteroffer as it rejects
Cora’s original offer (Hyde v Wrench).
Cora’s acceptance came after a lapse of time. Even when Cora had tried to accept the original
offer there was lapse of time of 4 days therefore there is no offer to accept (Ramsgate).
Enquiries during negotiations are treated as requests for information not counteroffers
(Stevenson). If Del was requesting more information, then Cora’s offer would still exist.
If a contract could be established, Del would be required to pay damages amounting to the
difference between the price agreed and any lesser sum for which Cora could sell the two
items.
gym weights, £400.’ In response, Del sent a text message to Cora: ‘What would you say to
£1000 for the bike and the weights?’ Cora replied, ‘I will think about it but prefer to sell
separately.’
Three days later, when he had not heard from Cora, Del bought a racing bike from someone
else. The day after, Del was surprised to get a message from Cora which read, “I accept your
offer of £1000 for both the bike and the weights. Ring me to arrange collection.” Del told Cora
that he was no longer interested in the bike or the weights.
Referring to the rules on agreement in formation of contract, advise Cora of any rights and
remedies that she may have against Del.
Cora may have a claim under the rules on agreement against Del.
First it must be established whether there is an offer or invitation to treat. The law distinguishes
an offer and invitation to treat.
An offer is a promise showing a willingness to contract on firm and definite terms (Gibson). An
invitation to treat is an indication that one person is willing to negotiate a contract but not
willing to make a legal offer (Partridge). Generally, advertisements cannot be an offer, however
it can be considered as an offer in a unilateral contract (Carlill v Carbolic Smoke Ball). Here
there is a unilateral offer as Cora, who is the offeror, makes the promise of selling the bike and
the weights in exchange for money.
Next it must be proven there was acceptance of the offer. Acceptance is the final and
unconditional agreement to all terms of the offer.
Del’s offer of £1000 for both the bike and weights is a significant difference to Cora’s offer of
the £800 bike and £400 gym weights. Del's response constitutes to a counteroffer as it rejects
Cora’s original offer (Hyde v Wrench).
Cora’s acceptance came after a lapse of time. Even when Cora had tried to accept the original
offer there was lapse of time of 4 days therefore there is no offer to accept (Ramsgate).
Enquiries during negotiations are treated as requests for information not counteroffers
(Stevenson). If Del was requesting more information, then Cora’s offer would still exist.
If a contract could be established, Del would be required to pay damages amounting to the
difference between the price agreed and any lesser sum for which Cora could sell the two
items.
