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Business Law - common law question

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Such lack of communication of acceptance negates enforceability of alleged contract as was held in the case of Felthouse v Bindley after a potential seller failed to communicate acceptance of an offer for a purchase (Collins, 2003). Tna offered to supply a specified quantity and quality of raspberry pulp to Cammy Pty Ltd at Cammy’s store on a further condition that payment would be made after seven days. Cmmy however accepted the offer on conditions that delivery would be made free and in three sets, 10 days apart.

refused to make delivery to Cammy who sued for damages for breach of contract. Te issue for determination in the problem is termination of a contract by counter offer. Tis is because existence of a valid contract emanates from agreement between parties in which terms presented by one party have to be accepted by another party. Pesenting different terms to an offer in acceptance is called a counter offer and terminates the original offer (Floyd and Allen, 2002). Te effect of making a counter offer is similar to that rejecting an offer and no claim can consequently be made over the offer even if it is still running (Emanuel, 2008).

Te doctrine of counter offer corresponds to the “mirror image” principle of acceptance that provides for correspondence of acceptance to terms of offer (Mulcahy, 2004, p Presentation of new terms by an offeree therefore contravenes the “mirror image” doctrine to invalidate an acceptance (Mulcahy, 2004, p 73) and an offeree, uon making a counter offer, rlinquishes rights to accepting the offer (Haupt, 2006). I the case, T made offer to Cammy who made a counter offer.

Te terms included quantity and time of delivery. Tis terminated the original offer as was held in the case of Hyde v Wrech (1840) (Rush and Ottley, 2006). Le pledges to buy land from Harry under a condition that the seller reserves the right to revoke the contract if the purchase is not made within the stipulated date. Le failed to make the purchase on the due date, iformed Harry’s solicitor that he would be able to complete the a week the due date and the solicitor agreed to consult with Harry.

Hrry however terminated the contract three days after the due date and Lee argues that Harry has no right to terminate the contract. Cmmon law differentiates sale contracts from agreement to sell. Acontract for sale for example transfers rights in the property to the buyer while. ..

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preview essay on Business Law - common law question
  • Pages: 4 (1000 words)
  • Document Type: Essay
  • Subject: Law
  • Level: Ph.D.
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