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Law of Obligations - Essay Example

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This essay demonstrates that the main question for Contemporary Caravans Ltd with respect to Nathan Noble, Ideal Homes and Homeward Abound is whether or not offer and acceptance was complete to such an extent that valid and binding contracts were formed…
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Law of Obligations
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Download file to see previous pages In this regard, an offer is terminated if it is not accepted within a reasonable time.4 An offer can be withdrawn at any time prior to its acceptance, although withdrawal must be communicated to the offeree.5 However, if the subject matter of the offer is sold prior to its acceptance, the acceptance is not valid because an offer cannot be accepted for the purchase of property that has already passed from the offerer to another.6However, Contemporary Caravan did not sell the motor home, although it claimed to have sold the property prior to receiving the acceptance from Ideal Homes. Nevertheless, an offer and acceptance will not form a legally binding contract unless there is consideration.7 Since there was no consideration, there is no binding contract and Ideal Homes cannot force Contemporary Caravan to sell the motor home to them. Nathan Nobel The communication between Nathan Nobel and Contemporary Caravans indicates a request for information and a response to that request. There was no definitive offer and acceptance communicated between the parties. Nobel simply asked for the lowest cash price applicable to the luxury motor home and Contemporary Caravans responded. Nothing more was said, and thus Contemporary Caravans had no reason to assume that the stated lowest cash price was accepted by Nathan Nobel. There must be some indication that there was an intention to form legal relations. A mere inquiry as to price will not be sufficient to substantiate that there was an intention to create legal relations on the part of Nobel.8 Moreover, assuming that Contemporary Caravans made an offer in its response to Nobel’s inquiry, Nobel failed to indicate one way or another that he accepted or rejected the...
This essay discusses that In light of the fact that the new arrangements were ongoing for 8 months, Right On had a legitimate expectation that these arrangements would continue for the full 12 months. Since Right On had a legitimate expectation that the new arrangements would continue for a year and acted accordingly, it would be unfair for Contemporary Caravans to withdraw their promise. Since the arrangements were ongoing for 8 months, Right On had a reasonable expectation that the new arrangements were genuine or honest and nature and would continue as promised by Contemporary Caravans.
Since there was a consideration in the sense that the new arrangements provide for a new method of discharging the loans, Right On can bring an action against Contemporary Caravans for breach of contract or anticipatory breach. In the latter case, Right On may if it likes, apply to the courts for injunctive relief prohibiting Contemporary Caravans reneging on the new arrangements.
Whether or not there was a consideration, is immaterial because the doctrine of promissory estoppel can be invoked to prevent Contemporary Caravans altering the terms of the new arrangements unilaterally. It is therefore suggested that Contemporary Caravans continue to keep its promise and to allow Right On to continue to make the reduced payments until the 12 month period expires. Since no reasons are given for the desire to back out of the promise and the new arrangements it is likely that a court would find that Contemporary Caravans were not acting in good faith.

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This essay was always my weak point. I could never finish it successfully. Still, after I found this precise essay, I understood how it should be completed. So, I performed my research afterward and completed the essay in several hours, instead of days as it was previously.


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