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Contract Assignment No

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Q.

On Tuesday Aria tells Bu, a workmate that she is: ‘thinking of selling her car which is
worth about £2,000’. On Wednesday morning Bu emails Aria: ‘Will take the car for £2,000,
will pay U when I see U’. Aria replies by email on Wednesday evening: ‘Don’t be silly, I was
not actually offering to sell the car but, having thought about it, you can have it for
£2,500. I know you will want it so don’t bother writing back unless you are not interested.’
Bu is so annoyed when he reads the first sentence of Aria’s email that he immediately
deletes it. On Saturday Aria drives round to Bu’s house to deliver the car and demands
payment. Discuss.

Would your answer differ if, after reading all of the email Aria sent on Wednesday
evening, Bu decided he wanted to buy the car for £2,500 and Aria now refuses to deliver
it?

A legally enforceable agreement known as a Contract establishes, clarifies, and outlines the
rights and obligations of the parties involved. This particular case addresses a variety of subjects,
including an invitation to treat and an offer and acceptance and we have to consult some of the
cases also. Using the IRAC rule, the first paragraph clarifies the initial statement that Aria spoke
to Bu and the subsequent paragraph lists the additional comments made between the aria and
bu.

By using the IRAC rule, the Issue of A's statement is an offer or an invitation to treat arises in the
first statement made between A and B. An Offer is a declaration of the desire to enter into a
legally binding contract on certain terms and serves as the basis for any agreement. An offer can
be revoked, terminated, or negotiated. The Rule that clarifies the offer is Storer v Manchester
City Council (1974) 3 ALL ER 824. An Invitation to treat indicates that one party is open to
receiving an invitation. As there is no immediate desire to be legally committed, it might
alternatively be seen as an invitation to negotiate rather than an offer. The case that clarifies the
invitation to treat is Gibson v Manchester City Council (1979) 1 All ER 972. We can determine
that the first statement in the aria does contain an offer or an invitation to treat by conducting
analysis and comparing the Storer and Gibson examples. It is obvious from the Storer case that
the terms are certain and the court of appeals determined that a legally enforceable contract
existed. The only thing Storer needed to do to commit himself was to sign the document and
mail it back after the council sent him an offer. In the Gibson case the terms are uncertain and
the council stated that “may be prepared to sell” so it’s not an offer. Lord Diplock stated that
“The words 'may be prepared to sell' are fatal...so is the invitation, not, be it noted, to
accept the offer, but 'to make formal application to buy on the enclosed application form.
It is...a letter setting out the financial terms on which it may be the council would be
prepared to consider a sale and purchase in due course.” The fact that there was no price
agreement in the Gibson case as opposed to Storer's case is a significant difference between
them. Important terminology in the Gibson case still needed to be established. The first
statement's Conclusion is that by contrasting, it is obvious that the aria made an invitation to
treat when he said, "Thought of selling a car," and since the price he mentions is the car's market
value rather than an offer.

The second statement between A and B raises the Issue of whether Bu is accepting or offering.
The offer is considered to have been accepted when the recipient of it expresses his consent. As
a result, when accepted, the proposition becomes a promise. According to the definition,
Acceptance occurs when the offeree accepts the proposition without conditions from the giver.
An offer like this becomes a promise if it is accepted. The analysis say that as we know that in
legal terms the invitation to treat is not an offer so it is not accepted. If the terms are clear in the
first statement so it should be an acceptance to an offer. The conclusion is that it is obvious that
Bu made an offer to Aria of 2000 pounds of her car because the invitation to treat is not
considered to be an offer.

Another statement by Aria to Bu raises the Issue: Is this a counteroffer from aria? A counter offer
is an offer made in response to an earlier offer made by the opposite party during discussions
for a binding agreement. Making a counter offer automatically rejects the initial proposal; if the
counter offer is accepted in accordance with its conditions, a contract is formed otherwise not.
This rule is applied in Hyde v Wrench (1840) 49 ER 132. The analysis made that the counter
offer is made and it terminates the previous offer as it happened in Hyde v wrench case so some
of the words of the judgment made by the LORD LANGDALE MR is stated as “I think there
exists no valid binding contract between the parties for the purchase of the property. I
think that it was not afterwords competent for him to revive the proposal of the
defendant, by tendering an acceptance of it; and that, there exists no obligation of any
sort between the parties.”

After reading the first clause of the aria statement, he is now so irritated that he deletes the
email, raising the Issue of whether or not the acceptance is legitimate. Or has Bu actually read
it? The Rule or case applied in this situation is Felthouse v Bindley (1862) EWHC CP J35. The
outcome of this case is that it was decided that the complainant and his nephew had no
agreement over the horse. The offer had not been accepted, silence did not constitute
acceptance, and another person cannot impose an obligation. Any acceptance of an offer must
be made known in a concise manner. There was no contract of sale, notwithstanding the
nephew's intentions to sell the horse to the complainant and his expressed desire. Therefore, the
nephew's silence on the complainant's offer did not constitute an acceptance of it. After reading
the Felthouse case, it is concluded that aria and Bu did not enter into a contract since
acceptance must be clearly conveyed and cannot be imposed owing to one party's silence.
Silence does not constitute acceptance.

I don't think my response would be the same if Bu sees the entire email that Aria sent on
Wednesday and stays silent, because of the condition she imposed in the mail to remain silent
for the acceptance. A contract has been made between the two parties, and if Aria refuses to
provide it, she is in breach of that contract.

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