In: Economics
On Wednesday, Frederick advertised his Nikon D800E digital camera in the local newspaper for £2000. George, on seeing the advertisement, called at Frederick’s house on the same day to see the camera. After discussion, Frederick offered to sell the camera to George for £1500. George stated that he would need some time to think it over but that Frederick should assume if he heard nothing from George by Thursday evening, that George had bought it. Frederick replied that this arrangement was fine by him.
At 3:00 p.m. Hari telephoned Frederick and offered to buy Frederick’s camera for £2300. Frederick immediately accepted Hari’s offer and e-mailed George revoking his original offer. Unknown to Frederick and George, there was a problem with George’s internet service provider and the message to George was never directed to him. Although Frederick did not know this, he was worried about the matter and tried to telephone George again at 6pm. Frederick spoke to Isabel, George’s wife, and told her that the camera had been sold. Isabel said that she expected George home at 6:30 p.m. and would pass the message on to him then. However, George had already decided to buy the camera and had faxed his acceptance to Frederick’s home at 5:15 p.m. Frederick did not read George’s acceptance until 6:30 p.m. George came at 7:15 p.m. and Isabel then gave him the message from Frederick.
What would Frederick’s advertisement amount to?
Who made the offer in this case?
State two (2) cases distinguishing an invitation to treat from an offer:
What is the general principle governing the acceptance of an offer?
State the case that supports this principle:
List one exception to the general principle governing acceptance of an offer:
Could Frederick accept Hari’s offer? Give reasons.
What is the general principle governing the revocation of an offer?
9. Could Frederick communicate the revocation of his offer to George, to George’s wife, Isabel? Give reasons.
10. What is the principle of law governing the Postal Rule?
What is the principle of law governing instantaneous forms of communication?
Was a valid contract formed between Frederick and George?
a) Intitlally, Frederick amount which he wanted to sell was £2000 . But after Hari's offer Frederick’s advertisement amount to £2300.
b) The offer was made by Hari in this case.
c) So, the Invitation was from Frederick which he advertised through local news which was amounted £2000. On the other side, The offer was made by Hari which he aggres to pay £2300 for the digital camera.
d) The general principle governing the acceptance of an offer:
An offer made by post/letter isn't powerful until gotten by the offeree.
Acknowledgment is viable when it is posted.
For disavowal to be compelling, it must be gotten by the offeree before they post their letter of acknowledgment.
e) In this case, The person(Geroge) who is offering money have not got any such type of Approval from Fredrick side until 6.30. because of his internet connectivity.
f) The demise or madness of either party, before an acknowledgment is conveyed, makes an offer terminate. ... It comprises an exemption to the overall principle that an offer might be removed before acknowledgment. The offeror may not pull out this offer since that gathering is limited by the thought given by the offeree.
g) No, Fredrich should not be accepting the offer which is made by Hari because Yet George has not declined the agreement with Fredrich and this will be totally illegal for fredrich if he will do deal without letting other person know about the full matter.
h)
An offeree's capacity of acknowledgment might be ended by
(a) dismissal or counter-offer by the offeree, or
(b) pass of time, or
(c) disavowal by the offeror
(d) demise or inadequacy of the offeror or offeree.
9) Yes, Frederick communicate the revocation of his offer to George, to George’s wife, Isabel because George is the husband of Isabel. It right to inform her wise prior to him. But George is the only person who can decise to withdraw the offer from Fredrich.
10) For the most part two principles named as the postal standard and the receipt rule apply to decide the snapshot of acknowledgment of agreements framed by post or message. ... Regardless of whether a specific correspondence is an offer or simply a challenge to offer has its heredity for the situation laws concerning postal and wire interchanges.
the principle of law governing instantaneous forms of communication:
The overall guideline in law expresses that acknowledgment is imparted, and has been gotten by the offeror . ... The decision applies where the methods for correspondence are esteemed immediate Entores Ltd v Miles Far East Corpn (1955).
Yes it was a valid contract unless george should know all the facts before fredrich would deal with other client because it should fall under the rule of contract.