Case Analysis : Hyde V Wrench

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ASSIGNMENT 1 LAW504 Case 1 Issue: The issue in this case is there any valid offer existing at the time Bob claims to have accepted one. And should Bob get the payment against his invoice to Mike? Law: An offer can be terminated in many ways. A counter offer destroys the original offer. Once it is rejected, an offer is no more valid and requires a new offer. As the counter offer terminate the original offer and if the party does not accept the counter offer, the other party cannot subsequently choose to accept the original offer at his/her on will as held in a similar case of Hyde v Wrench (1840) 49 ER 132. Application: On Jan 1, Mike offers to Bob for purchase of 30 Toshiba Satellite laptops for $300 each, inclusive of GST, delivery and insurance. On Jan 2, Bob made a counter offer to Mike as Bob offered Mike exclusive of GST, here original offer rejected automatically. On Jan 3, Mike rejected the counter offer made by Bob. On Jan 5, Bob sends an email that he is accepting the original offer of Jan 1, and delivers the laptops with invoice to Mike. Mike sends back the computers to Bob and refused to pay. With no existence of an offer there cannot be an acceptance for the same. The Mike is no more obligated to pay for the computers. Conclusion: Bob rejected the original offer through his counter offer. With the termination of the original offer no acceptance and hence no agreement could be established. So finally, Bob is not entitled to receive the payment. Case 2
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