This case has multiple issues that need to be discussed and clarified. First of all, Cory advances an advertisement regarding selling his computer. He then affirms that the binding will start according to the date of the acceptance. His first offer comes by email, but encounters some faults that delay its arrival. The email is followed by a fax that counter-offers the initial proposed price.
The offer
Firstly, it should be discussed if the proposal constitutes an offer or an invitation to treat. If it contains sufficiently clear terms to form a contract and if it indicates that the party is prepared to be bound, then it constitutes an offer. On the other hand, an invitation to treat would normally indicate the maker’s disposition to receive …show more content…
A valid acceptance, in general, should use the mirror-rule: it must be unconditional, equivocal and it should correlate with the exact elements and terms nominated by the offeror. The acceptance is the final assent to the terms of an offer. If, through the response the offeree alters a term or adds a new one in the offer, that will create a counter-offer and cannot constitute the acceptance of the original one. At this point the offeror and the offeree switch places, and the agreement will only conclude after there is acceptance from the original offeror, in this case Cory. Furthermore, the effect is in the same was as a rejection, the original offer is no longer valid. A clear example that demonstrates the effects of the counter-offer is Hyde v Wrench [1840] EWCH Ch J90 where Wrench wanted to sell his farm to Hyde for 1000 GBP. Hyde counter-offered and after the initial offeror rejected the new offer, he changed his mind and announced Wrench that he accepts the initial offer after all. It was held by Lord Longdale that there was no obligation between the two parties as the initial offer was destroyed when Hyde counter-offered. He stated that “if the offer had at once been unconditionally accepted, there would undoubtedly have been a perfect binding contract; instead of that, the plaintiff made an offer of his own […]. I think that it was not afterwards competent for him to revive the proposal by tendering an acceptance of
The offer
Firstly, it should be discussed if the proposal constitutes an offer or an invitation to treat. If it contains sufficiently clear terms to form a contract and if it indicates that the party is prepared to be bound, then it constitutes an offer. On the other hand, an invitation to treat would normally indicate the maker’s disposition to receive …show more content…
A valid acceptance, in general, should use the mirror-rule: it must be unconditional, equivocal and it should correlate with the exact elements and terms nominated by the offeror. The acceptance is the final assent to the terms of an offer. If, through the response the offeree alters a term or adds a new one in the offer, that will create a counter-offer and cannot constitute the acceptance of the original one. At this point the offeror and the offeree switch places, and the agreement will only conclude after there is acceptance from the original offeror, in this case Cory. Furthermore, the effect is in the same was as a rejection, the original offer is no longer valid. A clear example that demonstrates the effects of the counter-offer is Hyde v Wrench [1840] EWCH Ch J90 where Wrench wanted to sell his farm to Hyde for 1000 GBP. Hyde counter-offered and after the initial offeror rejected the new offer, he changed his mind and announced Wrench that he accepts the initial offer after all. It was held by Lord Longdale that there was no obligation between the two parties as the initial offer was destroyed when Hyde counter-offered. He stated that “if the offer had at once been unconditionally accepted, there would undoubtedly have been a perfect binding contract; instead of that, the plaintiff made an offer of his own […]. I think that it was not afterwards competent for him to revive the proposal by tendering an acceptance of