Law of Contract Essay examples

Decent Essays

Law of Contract Michelle is at University, studying to be a veterinary surgeon. David, a close family friend is also a veterinary surgeon. Whilst away at University, Michelle received a letter from David, saying that he was due to retire in a few weeks' time and that he wondered whether she would be interested in buying his veterinary equipment for the bargain price of 500 pounds. His letter asked for a prompt reply as a junior partner in his veterinary practice was also interested in buying the equipment, albeit at a higher price. Upon receipt of David's letter, Michelle decided that she would like to buy, but she would need to borrow the money. In order to speed matters up, she then wrote …show more content…

The offer cannot be vague or indefinite; it must be precise and express a clear intent to contract. The use of the terms 'wondered' and 'whether' in describing David's 'proposal', implies vagueness and lacks clarity. In his supposed offer, David fails to be sufficiently definite in his terms suggesting that there was no clear intent to contract. What Michelle may have perceived to be an offer may have, in fact, been on the part of David, a mere invitation to treat. An Invitation to Treat is an expression of intent to negotiate; it is not in itself an offer and cannot bind the parties into legal relations. David's letter may be regarded as an advertisement informing Michelle of his merchandise. The 'bargain price' of £500 may be perceived by the court as a mere reserve price, thereby nullifying any claim by Michelle of breach of contract. One could refer to the case of Harvey v Facey of 1893 where, similarly, a salesman informs the claimant, through the means of a telegram, of the price of a piece of land he intends to sell. The defendant writes: 'Lowest price for Bumper Hall Pen £900.' The claimants respond to the telegram expressing their acceptance of the salesman's statement and their desire for the title deeds to the property. The defendant

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