Offer And Acceptance Analysis

1500 Words 6 Pages
Does the correspondence between Ashley and Ben give rise to a concluded agreement? American Football Australia (AFA) will be liable for the bill that Ben sent to Ashley on behalf of Gridiron Association (GA), if there is a binding contract between the two parties. There are essential elements which must be satisfied for a binding contract to exist including agreement, consideration and intention to create legal relations.
Offer and acceptance analysis may be used to show agreement. An offer is a statement of intention by one party to be bound by certain terms of the contract without further negotiation. Whether a statement is an offer is dependence on how a reasonable person in the position of the offeree would interpret
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An acceptance leading to concluded agreement is effective only when conveyed to offeror. Ben has notified Ashley of his acceptance of the offer and terms during the phone call.
On the other hand, on interpreting the correspondence as a whole, Ben could be purported to have made counter offer if the standard terms and contract adopted by GA is inconsistent with terms in the preceding offer. In the battle of the forms, the last form that was dispatched and received without objection govern the contract. If that is the case, the standard terms proposed by Ben would be the terms of the contract. Nonetheless, it might be evident that they reached agreement during the phone
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There are two circumstances when ‘subject to contract’ agreement may be held binding. First where there is a concluded agreement on all the terms and parties intended to be bound to perform but requested execution of document for formality. The second include cases where there is a concluded and completed bargain on all the terms except performance of a particular term is made conditional upon the formal document being signed. Third category comprise of cases where the parties do not intend the terms to have binding effect thus there is no concluded contract until the execution of the formal document. The classification of cases depends on the intention of the parties. High court in Master v Cameron intended to mark the points on continuum of intention from ‘no contract’ to ‘fully binding

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