question 1. Alice wrote to Bill offering to sell him a block of share sin Utopia LTD. In her letter which arrived in Tuesday Alice asked bill to let me know by next Saturday. On Thursday Bill posted a reply accepting the offer. At 6 pm on Friday he changed his mind and phoned Alice. She was not in so Bill left a massage saying he withdrew his acceptance.
On MoNDAY opened Bill’s letter. Then she played back the message on the machine.
The contract was, on the face of it, formed on the posting of the letter going by the postal acceptance rule. As Alice used posted it was plainly within the reasonable contemplation of the parties that the mail be used to communication acceptance. Alice should argue that there is a valid contract and that Bill must be held to it.
Bill will try and argue that his phone call should trump his letter. Alice’s case will be stronger because she read the letter before hearing the message. Bill could have tracked her down and told her that he no longer wished to accept.
A court would probably let Bill withdraw his acceptance.
Cyril a stamp collector had a rare Peruvian 5 cent blue for sale. He wrote to Dania a collector. He asked whether she would be interested in purchasing it. Davina wrote in reply I am willing p pay GBO 500 for the blue. I shall consider it min at that price unless I hear to the contrary and I will collect it from your shop on Friday next week.”
Advise Davina as to the legal position if
a. Cyril disregard the letter and sold the stamp to Eric for GBP 600
b. If Cyril put the stamp on one side in an envelope marked ”sold to Davia” but then Davina decided that she no longer wanted it.
Davina made an offer. It is for Cyril to accept or not. The offeror cannot say that there is no need for communication like this because it is to the disadvantage of the offeree. One cannot accept by default like this. Davina;s case in situation a is feeble. Cyril is free to parley with others. His selling the stamp to someone else for GBP 600 is legal.
In the situation of B then this is tricky. Cyril has not communicated his acceptance to Davina and will not until she comes into the shop. If she informs him before then she can get out of it. If she arrives to find the envelope then she has probably formed a contract.