Offer and Acceptance as a Traditional Approach Linked with Contract Law - Essay Example

?Offer and Acceptance Table of Contents Table of Contents 2 Introduction 3 Offer and Acceptance 4 Advertisements 5 Postal Acceptances 7 Termination of Offer 7 Suitable Advice to Mary 8 Conclusion 9 References 10 Bibliography 11 Introduction In accordance with the case, Mary joined a local gym on 1st of March and on 20th March she viewed an advertisement stating that any member of the gym who introduces s a new member and buys a yearly membership will be rewarded with an amount of ?50. The claim of the reward is to be attained through the card available on the reception of the gym. Apart from claiming the reward through card, it is also necessary to post the claim to Bulging Msclesds LTD before 21st of May. In this similar context, Mary introduced a new member named James on 1st of April and he acquired a membership subscription for one month. Later on in 1st of May, James bought membership for one year. In this respect, Mary, on 15th of May mailed the card in order to claim for the reward as she introduced a new member i.e. James in the club. However, Mary received a regret letter on 23rd of May, stating that she is not receiving the claim for the reward due to certain reasons. The reasons mentioned to Mary for not receiving the claim are that the offer for the reward has been revoked on 7th of May in the website of Bulging Msclecds LTD and the card for claiming the rewards was not received in time. It was also mentioned that James was not a new member at the time rather than an existing one when yearly membership was acquired. This discussion will emphasize upon the law relating to offer and acceptance as well as the claims made in relation to the aforementioned case. Moreover, the discussion will also emphasize on the procedures as well as steps to be taken by Mary in order to face the aforementioned situation. Offer and Acceptance ‘Offer and acceptance’ is an approach relating to contract law which states that the parties or an individual form an agreement when an offer made by an offeror is accepted by an offeree. An offer is an obligation as well as a promise to perform certain task in future. It is a process of forming contract among two parties where the proposal offered by one party is accepted by another party. An offeror is an individual who proposes an offer and an individual who accept an offer is known as offeree. Moreover, offer and acceptance can be made in any form that includes written as well as verbal and means of conduct. There are certain requirements which are necessary for an offer to be effective in its approach such as the objectives of an offer to be proposed must be intentional. The intention of the offeror is required to be clear as well as definite for successful performance of an agreement between the parties. An offer is required to be legally recognised for better execution of contract between the parties. Mere expression of opinion as well as invitation to negotiate is not considered as an offer. Advertisements as well as circulars are not considered as an offer unless they are is meant for general public or to a group of people. Advertisements which are proposed in a unilateral contract are considered to be a valid contract. Moreover, terms as well as conditions of any proposed offer must be definite that would assist both the parties as well as judicial court in determining the requisite conditions of the offer for better decision making. It will also assist in identifying breach in a contract and would provide appropriate remedies. Furthermore, the offer to be proposed must be communicated to other party i.e. the offeree. A proper communicated offer will ultimately assist an offeree in claiming rewards for the performance of a contract. Therefore, offer and acceptance are basic elements in a particular contract (Miller & Hollowell, 2010). Advertisements Offer and acceptance which are made through advertisements are to be mentioned for general public as well as proposed through unilateral contract. Adverts which specify that on accomplishment of certain activity by an individual will automatically bound to enter into a contract. These adverts are considered as valid offer and an offeree is eligible to claim rewards on the performance of an offer. The offeree is also required to be aware of the terms as well as conditions for accepting a proposed offer in a valid manner (Collins, 2003). Thus, in accordance with the aforementioned case, Mary was aware of terms as well as conditions of the offer. Moreover, the offer was made through advert which was meant for people involved with the gym. Therefore, the offer proposed was a valid offer. Furthermore, it was mentioned that the members who will be able to introduce new members acquiring yearly membership will be rewarded ?50. Therefore, Mary on furnishing all necessary conditions was eligible for getting the reward. To cite an example, Carlill v Carbolic Smoke Ball Co (1893) Q.B. 256 Court of Appeal has been taken into concern in order to support the case of Mary. In the case, Carbolic Smoke Ball Company in a newspaper advertisement provides an offer to pay ?100 to individuals who would be experiencing flu as well as influenza along with other cold diseases after intaking its medicinal product of smoke balls. There was a condition placed by the company that smoke balls are require to be used thrice a daytime for two consecutive weeks as per instructed in the package. In this regard, Mrs Carlill brought few smoke balls and intake those in accordance with the prescribed instructions made by the company. Consequently, after using those smoke balls, she has been experienced with cold as well as flu. Furthermore, as per the offer in the newspaper, she claimed for the reward to the company (The University of British Columbia, 2012). The company after receiving the claim from Mrs. Carlill states that the advertisement that has been provided in the newspaper was just a simple ‘invitation to treat’ and cannot be regarded as an offer. Moreover, the company proposed the advertisement was meant for improving sales of smoke balls without any intention of making it an offer. The company also argued that it was not possible for the company to make such offer worldwide as well as that there was no clarification for the acceptance of offer. Moreover, the extent of cold disease was also not mentioned in the advertisement that relates to the vagueness of the offer. Furthermore, there is no evidence that individual claiming for the rewards does not have an evidence of purchasing smoke balls. These were the arguments which were placed before the court by the company (University of Delhi, n.d.). However, in accordance with the Court of Appeal, Mrs Carlill was provided with the right to be awarded as per the advertisement. The offer in the advert was considered as a unilateral contract for acceptance of offer as well as performing offer in compliance to the terms mentioned in the advertisement. The court discarded the arguments put forwarded by the company concerning that a sum of ?1000 has been deposited to the Alliance Bank for making an offer worldwide. Moreover, an offeree is not required to make an ‘intention to accept’ in case of unilateral contracts (University of Delhi, n.d.). Therefore, in accordance with the judgement of the court Mrs. Carlill is provided with a payment of ?100 as per the advert in the newspaper. Moreover, from this instance adverts are regarded as valid offers. Postal Acceptances Postal acceptances signify that an offer is accepted only when the acceptance letter is posted. In this regard, time is not a crucial factor for an offeree to accept the offer. It is also identified as the ‘postal rule’. The posted offer is regarded as a valid offer even if the acceptance letter does not reach to an offeror. Furthermore, an offeror possess every control over an offer as well as on the procedures through which a letter of acceptance may be communicated. Therefore, an offeror is considered to be responsible in case of postal acceptances (Oxford University Press, 2012). Therefore, in accordance with the aforementioned case, Mary posted card required for the acceptance of the offer as well as to claim the reward. Mary on posting the required card ultimately revealed that she had accepted the offer as per the ‘postal rule’. Thus, Mary is eligible for claiming the reward from the offeror. Termination of Offer An offeror can terminate an offer prior to the acceptance of an offer. Moreover, termination of an offer is required to be communicated to an offeree for effective termination of an offer. An offer can also be terminated if such offer is rejected by an offeree. Offer may also get terminated with the lapse of specified time. When a time is specified about the expiry date of an offer, such offer will be revoked after the completion of specified date. Furthermore, an offer may be revoked on the death of any party who are involved in the contract. These are the varied ways through which an offer can be terminated or revoked (Gillies, 2004). Therefore, in accordance with the aforementioned case, an offer was proposed in the gym that individuals who will be able to introduce new member with a one year membership subscription will be provided with a reward of ?50. Mary introduced James and he purchased a yearly membership subscription. According, to the conditions of the offer, Mary posted the acceptance letter to the offeror claiming for the reward. It has been viewed that the claimant made by Mary for receiving the award was revoked due to certain crucial reasons. In this aspect, termination of the proposed offer was not properly communicated to the people of the gym. Thus, it can be stated that Mary was eligible for claiming reward from the offeror. Suitable Advice to Mary In accordance with the aforementioned case, Mary was eligible for availing the reward as termination of an offer is required to be informed to an offeree in an effective manner. Whereas, Mary was not informed about the termination of the offer before she claimed for the reward. Moreover, on posting the card for claiming the reward, Mary proved to accept the offer in accordance with ‘postal rule’. Furthermore, Mary introduced James and he bought a yearly membership subscription on 1st May and on the advert it was not mentioned that on the day of introducing a new member, the new member should purchase a yearly membership subscription. Therefore, Mary might proceed to Court of Appeal in order to claim for the reward as well as can take necessary legal actions against the offeror. Conclusion Offer and acceptance is regarded to be a traditional approach linked with contract law which signifies that when an offer is made by an individual or offeror and such offer is being accepted by another individual or offeree, then an agreement is formed between these two parties. There are few specific requirements for an offer to be effective. The effectiveness of an offer is based upon the objectives as well as the intentions of an offeror. The objectives as well as the intentions of the offeror are required to be clear as well as specific relating to an offer. Moreover, an offer to be proposed is required to be communicated in an effective manner. Offers communicated in an appropriate manner will certainly assist both offeror as well as offeree in proper offer acceptance. Furthermore, terms as well as conditions of an offer should be explicit for better knowledge as well as awareness of necessary requirement for effective performance of an offer. In accordance with the aforementioned case, an advertisement in the gym notifies that individual who will be able to introduce new members purchasing one year membership subscription will be rewarded with ?50. Mary introduced James, who purchased a one month membership subscription and in the first of next month acquired one year membership subscription. Mary posted required card to the offeror for claiming reward. But later, it was identified that she will not receive such reward due to termination of offer as well as not receiving card in time. However, Mary was not communicated properly about the termination of offer to be effective. According to ‘postal rule’, on posting the card, it can be affirmed she accepted the offer whether such letter reaches the offeror or not. Therefore, Mary is eligible for the reward and may approach to proceed to Court of Appeal for claiming the reward from the offeror. References Collins, H., 2003. The Law of Contract. Cambridge University Press. Gillies, P., 2004. Business Law. Federation Press. Miller, R. L. & Hollowell, W. E., 2010. Business Law: Text & Exercises. Cengage Learning. Oxford University Press, 2012. Offer and Acceptance I: General Principles. Chapter 2. [Online] Available at: http://www.oup.com/uk/orc/bin/9780199571741/osullivan4e_ch02.pdf [Accessed January 01, 2013]. The University of British Columbia, 2012. Carlill v. Carbolic Smoke Ball Co. Contracts Law. [Online] Available at: http://faculty.law.ubc.ca/biukovic/Contracts%20law/Microsoft%20Word%20-%20Case%20Brief%20-%20Carbolic%20%20-%20Sean%20Stynes.pdf [Accessed January 01, 2013]. University of Delhi, No Date. Carlill v. Carbolic Smoke Ball Co. Formation of an Agreement. [Online] Available at: http://www.du.ac.in/fileadmin/DU/Academics/course_material/principal-of-contract-course.pdf [Accessed January 01, 2013]. Bibliography Insite Law Magazine., No Date. Law of Contract. Chapter 3. [Online] Available at: http://www.insitelawmagazine.com/ch3offer.htm [Accessed January 01, 2013]. Pearson Education Ltd., 2013. The Formation of a Contract. Sample Chapter. [Online] Available at: http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplechapter/Elliott_contract_C01.pdf [Accessed January 01, 2013]. Salzedo, S. & et.al., 2005. Briefcase on Contract Law. Routledge. The Lawyers & Jurists, 2010. Chapter-2 Offer and Acceptance. Contract. [Online] Available at: http://www.lawyersnjurists.com/resource/course-materials/business-law/contract/chapter-2-offer-and-acceptance/ [Accessed January 01, 2013]. Read More