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The Law of Contract and Remedies for Breach and Postal Rule in Communicating Acceptance - Case Study Example

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The paper "The Law of Contract and Remedies for Breach and Postal Rule in Communicating Acceptance" highlights that the English law of contract requires a binding contract to have an offer and acceptance and both parties must aim at creating legal obligations. …
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The Law of Contract and Remedies for Breach and Postal Rule in Communicating Acceptance
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Download file to see previous pages According to the case of Pharmaceutical Society of Great Britain v. Boots (1953) 1 QB 401, display of goods is a willingness to conduct business or commence negotiations thus is considered as an invitation to make an offer (Mulcahy 2008). Mulcahy (2008) points out that the law of contract requires a valid offer and acceptance. An offer is an expression of willingness to enter into a contract with the intention of creating legal obligations upon acceptance. An offer has to be communicated since there can be no ‘meeting of the minds’ the offer is not communicated. In this case, Harry has made an offer of £1,000. According to the mirror image’ rule, the acceptance by Paul must be done according to the terms of the offer. The case of Day Morris Associates v. Voyce (2003) clarified that acceptance by either words or conduct of the other party gives rise to the inference that the offeree assents to the offeror’s terms thus a valid acceptance must be done according to the terms of the offer for a legally binding contract to be formed (Mulcahy 2008). In this case, Paul has not accepted the offer from Harry since he asserts that he will accept £1,500 thus he has made a counter-offer that extinguishes the original offer by Harry. In this case, Harry is required to make a valid acceptance that mirrors the terms of the offer from Paul. According to the court of appeal in the case of Butler machine v. Ex-cell-o (1979) 1 WLR 401, the ‘last shot’ or last offer wins the ‘battle of forms’ in instances where one party makes an offer and the other makes a counter-offer (Stone and Quinn 2007). Generally, silence has not deemed acceptable, and thus Harry requests for three days to think about the acceptance. Although Harry has requested for three days to think about the offer, Paul has not cancelled the offer. Accordingly, the power of acceptance does not terminate if it is qualified in form, but not in substance. Paul’s offer can only be terminated through acceptance, rejection, the lapse of time, counter offer and revocation.  ...Download file to see next pagesRead More
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