Common Law

Common Law

  • Submitted By: johnny2121
  • Date Submitted: 10/14/2013 9:52 PM
  • Category: Business
  • Words: 1085
  • Page: 5
  • Views: 95

This situation of determining whether or not there is an offer requires an objective test. The court in which the objective test is applied would consider two things. The first being the importance placed on the statement by the two parties. The second is how closely connected the statement is to the contract. In this case, since no contract has been formally drawn, then no objective test can be performed. Also, during their conversation, the offeror-Ross, does not discuss any intention to sell his car but only to ‘let go’ of it. This statement is considered tentative to the offeree as Ross did not say he wanted to ‘sell’ his car. This led Stanley to believe that the vehicle was to be given to him temporarily until Stephanie had saved enough to purchase another car, at which time she would return the vehicle to Ross. Also, during the inspection of the car, the two had discussed the market value of the car. This is being considered as an invitation to treat or to bargain. Any form of treating cannot be seen as an offer.

In this situation, Ross believes that there is an offer made by Stanley to purchase the car. The amount was discussed as the current market value of the car being $3500. Assuming that there was an offer, Stanley expressed his acceptance orally but not in writing. It is on the onus of the offeror to produce a legally binding contract which states the details of the terms. However, after the car had been handed over, the offeror and the offeree stated that they would both conclude the deal. Since then, neither Ross nor Stanley had said anything to each other about the payment of the car. In this case, silence is being expressed, meaning that there is no such form of acceptance. In the case of Felthouse v. Bindley (1862) , the court ruled that acceptance must be expressed clearly and cannot be forced due to the silence of one of the parties.

In this case, the offeror and offeree stated that they have been good friends for a very long time. The...

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