Fundamental of Laws

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INTENTION We would first need to establish if there is a valid and legally binding contract formation between Iris (“the offeror”) before deciding on the likely outcomes for the parties. A proper contract constitutes an offer, an acceptance, the provision of a consideration of value and parties’ intention to legal relations. There was no depute as to the presence of a valid offer because Iris did indeed make an offer to sell the piano for a specific price and its terms i.e. keeping the offer open for Diana till noon on Saturday, were communicated to Diana. In return, Diana had also put up her consideration towards the formation of the contract by making an effort to raise the money needed to buy the aforementioned piano from Iris.…show more content…
Therefore, Iris promise to hold the piano till Saturday was not legally binding. Thus, the offer was invalid. ACCEPTANCE There are two elements for acceptance to be valid. At law, acceptance must be Final and Unqualified. The general rule is that acceptance is effective only when is communicated to the offeror. Diana’s acceptance is final and unqualified as she phoned and left a message with Iris’s daughter, Athena, saying that she got the money and would collect the piano on Saturday morning. However, the acceptance was not communicated to Iris as Athena forgot to pass the message to Iris. Thus, Diana’s acceptance of offer is invalid as it does not fulfill the requirements for the acceptance to be effective. The acceptance was not communicated to the offeror. REVOCATION At law, offeror may revoke an offer at any time prior to the offer being accepted even if the offeror has promised not to revoke it – Routledge v Grant Notice of revocation is crucial; it is not effective unless the offeree knows it. Offeror are entitled to change their minds and withdraw offers at any time right up to the moment of acceptance. An offer can be revoked by the offeror any time before it is accepted. This is analogous to the case of Byrne & Co v Leon Tienhoven & Co (1880) Personal notification is usual, but is not essential as long as the offeree knew or reasonably
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