Question

QUESTION ON OFFER & ACCEPTANCE

Linda has decided to sell her car and parks it outside her house with a notice on the front windscreen stating: “For sale; pristine condition; one owner; £4,750 or near offer. Please call at 1 Farmers Road or Telephone 0201-123456. First person to agree on a price will get the car”.

On Monday at 9.00am, Eunice sees the car, but as she was running late for a dental appointment, she telephones Princess from work at 10.00am, and makes an offer of £4,500, which Linda says she would like to consider.

Eunice says that she will assume Linda has accepted her offer unless she hears from her by 9.00pm that evening, a proposal to which Linda agrees.

At 11.00am on Monday, Daniel calls at Linda’s house, but Esther, Linda’s daughter, was the only person at home. He therefore leaves a note reading; “Monday 11.00am. Please keep the car for me. Here is a cheque for £4,750, Daniel”. Maxwell leaves the cheque together with the note on a desk in Linda’s study.

At 12.15pm on that same Monday, Mark passes by the car and sees the notice, and within a few minutes, posts a first class letter of acceptance together with a cheque for £4,750, using the post box at the end of the street. Unfortunately, Mark misaddresses his letter, so it arrives on Friday.

At 3.00pm on Monday, Linda decides to accept Eunice’s offer and posts a letter of acceptance to Eunice’s business address, saying: “I agree to sell on your terms. Because of the lower price, can you pay in cash”?

At 9.30pm on Monday, Linda reads Daniel’ acceptance and immediately telephones Eunice’s business address, leaving a message on the telephone service answering machine: “Ignore the letter you will receive, deal off, Linda”. Eunice is away on business and only listens to the tape on Wednesday evening.

Please help me answer this question.   

CITING APPROPRIATE CASES & ESTABLISHED LEGAL PRINCIPLES, ADVISE THE PARTIES ON THEIR LEGAL POSITION. HAS A CONTRACT COME INTO BEING? IF YES, WITH WHO? IF NO, WHY IS THERE NO CONTRACT?

Word Limit: 2,500

Answer 1

The most essential elements of a valid contract is an agreement where the parties to the contract communicates to one another of their intentions to create legal relationship . A proposal from the side of one party to the contract to do or abstain from doing a particular act and its acceptance by the other party are the two essential elements of an agreement . In order that an agreement may be enforceable at law , not only the proposal and acceptance should be definite but also the acceptance of the proposal should be in the mode prescribed and must be communicated to the offereror .

Now we look at what Linda offered :

A . Price has to be Pounds 4750 or near offer .

B. Call at 1 Farmers Road or Telephone 0201-123456

C. First person to agree on a price will get the car

Now in light of this and above text let us evaluate the position of each offeror :

Offeror	Price Quoted at Pounds 4750 or Nearer	Call at 1 Farmers Road or Telephone 0201-123456	Offer	First person to agree on a price	Acceptance to Offeror
Eunice	Quoted Pounds 4500 . It is Nearer	Yes	Yes	Yes	Yes at 3PM and before agreed time of before 9PM
Daniel	Quoted Pounds 4750 and issued a Cheque	Yes	Yes	No	No
Mark	Quoted Pounds 4750 and wrote letter of acceptance	Yes	Yes	No	No

If we go by above analysis there is a legal contract only with Eunice and she should get the car .