Skip Nav

law of contract-offer and acceptance

Learn more

❶The sale of the two farms was on a cash transaction thus in accordance with the principles outlined above the court ruled and the cession to Hersh was valid and his accepted gave him a contract with Nel. The court held that the mere fact that parties reside at a distance does not per se warrant the use of post, the expedition theory therefore did not apply.

Not what you're looking for?

How to cite this page
Found what you're looking for?

In other words and second clause dispensed the need for communication of acceptance. The Appellant argued that they had sent two copies so that the respondent would return one and keep one for his records and return the other one.

Where the offeror chooses to use the post as the means of communication the expedition theory applies. According to this theory a contract is concluded as soon as the letter of acceptance is posted. The contract is concluded before the offeror receives the letter, let alone reads the letter. Thus there will be a binding contract even though the letter never get into the hands of the offeror. The rationale behind this theory is that the offeror must suffer the risk consequences of choosing a specific method of acceptance is communicated acceptance.

The leading case on the Expectation theory is that of: The letter contained an offer to sell certain quantities of glycerine oil. On the 14th of July the plaintiff replied accepting the offer. Then on 11 September the second defendant of Durban sent a letter by post to the plaintiff in Cape Town containing another offer to sell a certain quantity of glycerine oil.

In an action of the …… the defendants took exception to the jurisdiction of the court on the ground that they were not entered into in the Cape but in the Transvaal and Natal respectively where the defendants had received the letters of acceptance.

This argument did not find favour with the court which held that the contracts had been concluded in Cape Town where the letters of acceptance had been posted. When the offeror makes the offer by post the immediate inference is that acceptance can also be by post so it is open to the offeror to indicate that he will not consider himself bound unless and until he receives the letter of acceptance.

If the offeror does not make this special provision the expedition theory will be applied without any exception. The basis of the rule is that by using the post first the offeror by implication authorises the offeree to use the same method of communication. Case Smeiman v Volkersz 4 SA The Applicant and the respondent made an option to sell some shares to the applicant.

The option was verbal and it was to remain open till 15 February Both copies were posted on the 15th of February but neither reached the respondent on the date. If the expedition theory is applied then the option had been exercised timeously but if it did not apply, then it was not exercised on time because it had lapsed.

The court held that the mere fact that parties reside at a distance does not per se warrant the use of post, the expedition theory therefore did not apply. By using the post one of the risks the offeror assumes is precisely that the offeree had an option of using a more expeditious means of communication in respecting the offer.

Similarly, a faster means of communication would neutralize a posted acceptance. In accordance with the provision of Section 6 1 of the Act. Court interpreted this Section to mean that the owner was required to physically deliver to the Ministry concerned a written acceptance for a contract to come into existence.

Jansen JA said, But even under the law the question whether the alleged agreement has been conducted by posting must depend upon particular circumstance of each case.

The Expedition Theory does not hold without exceptions. It is important therefore to establish the precise limits of the application of the Expedition Theory. Thus the judge emphasized that it is not clear that all whether the Expedition Theory, mainly condemned for the protection of the offeree, should necessarily produce the possibility of a neutralization of the posted acceptance before it is received by the offeror.

First there must be offer and acceptance i. Differences between Estoppel and Quasi Mutual. The defendant then flouted the promise and plaintiff sued him for maintenance on the basis of the arrangement they had made. The courts dismissed the claim on the ground that by holding that this was a social arrangement which did not create an intention to be legally bound.

An honor clause specifies that an agreement is only supposed to be binding in honor and not give rise to any legally enforceable obligation. An agreement cannot be deemed to be a contract if the performance of the obligation is impossible.

This position was captured in the case of: Peters, Flamman and Co v Kokstad Municipalities where the court held that by the civil law a contract is void if at the time of its inspection its performance was impossible. The impossibility must not be fault of one of the parties to the contract NBParties should not agree upon anything unlawful nor outside human capabilities Formalities In Zimbabwe contracts need not be reduced into writing unless there is a statute that specifically provides so e.

Similarly Section 7 of the Contractual Penalties Act provides that an installment sale of land must be reduced into writing. Section 47 of the Companies Act provides that a pre-incorporation contract must be reduced into writing. NBThe reason why there is such emphasis for reducing contracts into writing is for evidential purposes and it is also easy to decide on any case involving contracts put into writing i. Contractual Capacity For an agreement to valid the parties to a contract must be legally entitled to enter into such agreements.

In Zimbabwe the law has divided persons into artificial persons and natural persons. Companies — for a companies to enter into an agreement it must be represented by a natural person who is empowered by its Articles of Association to enter into contracts on behalf of the company.

Also the contract itself must fall within the parameters of the memorandum of Association. NB Thus if contracting with any company one should check on the above two requirement otherwise the contract would be deemed and void. Partnership As regards a partnership the capacity to contract is found in the partnership deep. However, it is generally accepted that any partner can enter into a contract on behalf of the partnership if the contract furthers the interests of the partnership. A telegram falls under postal rule and thus the same rule applies.

The law states, for an acceptance to be made there must be an agreement by both parties. In the case provided it is clear that Barry has an agreement with both Cyril and Robert. Robert will be able to seek remedies for any damages brought. This could be in the form of allowing Robert to claim the difference between the original champagne bottle and one of its sort.

Essay UK - http: If this essay isn't quite what you're looking for, why not order your own custom Law essay, dissertation or piece of coursework that answers your exact question? There are UK writers just like me on hand, waiting to help you. Each of us is qualified to a high level in our area of expertise, and we can write you a fully researched, fully referenced complete original answer to your essay question.

Just complete our simple order form and you could have your customised Law work in your email box, in as little as 3 hours. Offer, acceptance and consideration — problem question. If you are the original author of this content and no longer wish to have it published on our website then please click on the link below to request removal:.

Essay UK offers professional custom essay writing, dissertation writing and coursework writing service. Our work is high quality, plagiarism-free and delivered on time. They are also invitations to treat, which invites customers to make an offer to the shopkeeper, whom he can then chose to accept. A similar case found that a product in a store with a price attached is not sufficient to be considered an offer, but rather is an invitation to treat.

Advertisements can be offers or invitations to treat, depending on the advertisement. The legal precedent in English contract law is that advertisements are usually invitation to treat.

One of the cases that established this was Partridge v Crittenden. Because there was a limited supply, it was judged that the advertisement was merely an invitation to treat, as if it had have been an offer, then it would have had to have been a unilateral, which would have been impossible with only a limited supply. Partridge v Crittenden [] 1 WLR However there are also cases where advertisements can be offers.

In the case of Carlill v Carbolic smoke Ball Company it was decided that, because the advertisement did not have a limited supply, stated that it was an offer and displayed genuineness, that the advertisement was in fact an offer. This was a unilateral offer as it was made to the world at large. Acceptance can only occur after an offer is made. Treitel defines the term acceptance as: The normal rule for the acceptance of an offer is communication. However there can be exceptions to this rule.

For instance the conduct or actions of the parties may amount to acceptance of an offer.


Main Topics

Privacy Policy

Offer and acceptance contract law essay Advice Austin of his legal position and what remedies, if any, are. Offer and Acceptance is a traditional approach in contract law which is used to determine when an agreement exists between two parties.

Privacy FAQs

An acceptance is a final and unqualified acceptance of the terms of an offer. Unless it can be shown that there was such an acceptance, then there is no contract. Where the offeror sets out his offer and request an answer of yes or no from the offeree, it is not difficult to determine whether or not there has been an acceptance.

About Our Ads

This essay has been submitted by a law student. This is not an example of the work written by our professional essay writers. Example Answers to Questions on Offer and Acceptance. The terms offer and acceptance are terms most commonly found in contact law. An offer makes up the first part of a contract, it is imperative that the offer is definite. The term offer is defined by Treitel as: ‘ an expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as it.

Cookie Info

Offer and Acceptance in the Courts Essays Words | 5 Pages. Offer and Acceptance in the Courts In dealing with problems of offer and acceptance, the Courts have taken a strict approach, stating that there must be clear offer and acceptance in order to create a binding contract. Free Essay: Offer and Acceptance Phases of a Contract Bob owns a stamp shop in Muncaster High Street. On Monday he places an item in the advertisement column.