Business Law Case Study

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Case Summary: -Bob owns a Jewelry store -Sam operates electronic security equipment store -Bob and Sam are friends -Monday, Bob held a casual conversation with Sam about fitting his store with "closed circuit television and the best available electronic locks" -Tuesday, Sam sent Bob a Quotation of price "Lists of models and List of price" -Wednesday, Bob Replied BY POST. "Choice of Supreme Model for camera" -Posted to old address, Sam received on Saturday and emailed on the same day " Will deliver the goods by Monday" -Thursday, Bob wanted to cancel the contract, but couldn 't reach Sam -Left a voice message, Sam received on Monday Bob does not wish to take and pay for the goods ADVISE in relation to Offer and Acceptance…show more content…
The fact Bob has made his initial offer through post; making it reasonable for Sam to rely on postage to deliver his acceptance. However, Sam has accepted his offer through email. But, is an acceptance through email treated the same as an acceptance by mail? Following the United Nations Commission on International Trade Law, Article 15 stated that: -An email is deemed to have been received at a designated email address once it has entered a service provider 's email system and would appear in a user 's inbox when he logs on to the email account. (StudyGuide Page 8, 9) Essentially, this definition is the equivalent of an acceptance by letter, as the acceptance made through e-mail became effective when it is sent to the Bob 's email address. It is irrelevant whether or not Bob has read the letter. Following the above reason, it is possible to conclude that the Postal Rule of Acceptance does apply in this case. Sam 's acceptance through e-mail is effective as of Saturday. It is also important to note that, has Bob included in his offer, a term excluding the operation of postal rule, Sam would not be able to accept the offer by email. This is apparent in "Holwell Securities v Hughes", where Postal rule did not apply. The offer contained an option that required the Plaintiff to produce a notice in writing to the Defendant. The mail was lost and never delivered to

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