Question

On 1st September, Helen told Kelvin that she would let him have her Antique Rolex watch for HK$200,000. However, Kelvin told Helen that he would buy the watch at HK$120,000 only. Kelvin’s suggested price was refused by Helen at the same time. On 2nd September, Kelvin telephoned Helen and said that he had changed his mind and that he wanted to accept Helen’s offer. However, Helen told Kelvin that she had already sold the watch to somebody else. Advise Helen if there was a contract between her and Kelvin.

Answer 1

Valid contract: A contract is said to be valid if it has a valid offer, a valid acceptance, a valid consideration, parties capable to contract, and most significantly free accord.

Free consent means when both the parties would agree to a thing in the same sense of mind, then the agreement should be said to have conducted in free consent. It should be done without pressure, deception, unjustifiable impact and distortion.

A valid contract is a written or expressed agreement between in order to provide a product or service. There six elements of a contract that would make it a legal document. For a contract to be enforceable, it should consist of:

· An offer would specify the details exactly what would be provided

· Acceptance by the other party to the offer presented

· Consideration being exchanged between the parties

· Capacity of the parties related to age and mental ability

· Intent of both parties in order to carry out their promise

· Object of a contract should be legal and should not violate the law.

Explanation:

Voidable contract: A voidable contract is a formal agreement between two parties which may become unenforceable for several legal reasons. Reasons that could make a contract voidable include the following:

Failure by parties to disclose a material fact. a mistake, misrepresentation or fraud, undue influence or duress.

In this case, on 1^st September, Kelvin's proposed price, HK$120,000, of the Antique Rolex watch had been declined by Helen. Helen used to sell the watch at HK$200,000. On 2^nd September Helen sold her watch before communicated by Kelvin to Helen.

So as per law of voidable contract, there was no contract occurred between Helen and Kelvin.