Tan writes to Yun stating that he will sell his car to him for £10,000. At the same time, Yun writes to Tan stating that he will buy his car for £10,000.
Which of the following statements applies to this situation?
A There is a binding agreement due to the postal rule
B There is a collateral contract
C There is neither an agreement nor a contract
Which of the following statements as regards an acceptance of an offer ‘subject to contract’ is true?
A It binds the offeror
B It binds neither party
C It binds both parties
Ann owns a shop selling prints. She placed an advertisement in the Friday edition of her local paper stating:
‘Unique opportunity to own a Bell print for £500 cash. Offer valid for one day only – tomorrow Saturday.’
When Con saw the advert, he immediately posted a letter of acceptance.
On Saturday, Di asked Ann if she would take a cheque for £500, but she refused to accept the cheque and told her she could not have the print. Later that day Ann sold the print to Evi.
On Monday morning Con’s letter arrived.
Required:
In the context of the rules governing the creation of contracts:
(a) Describe the precise legal nature of Ann’s advertisement;
(b) Explain whether Con has any right of action against Ann;
(c) Explain whether Di has any right of action against Ann.
Ali is a dealer in Persian rugs. As his business has been rather slow, he placed an advertisement in the Saturday edition of his local paper stating:
‘Once in a lifetime opportunity to own a handmade Persian antique rug for only £1,500 – cash only. This is a serious offer – the rug will go to the first person who accepts it – offer valid for one day only – today Saturday.’
When Bud saw the advert, he immediately posted a letter of acceptance of Ali’s offer in order to make sure he got the rug.
Cil also saw the advert and after inspecting the rug offered Ali a cheque for £1,500, but he refused to accept the cheque and told her she could not have the rug.
Later in the day, Das asked Ali if he would keep the offer open until he could get to his bank to arrange a loan. Ali agreed, but subsequently, when Ed offered to pay £2,000 in cash for the rug, Ali sold the rug to him.
On Monday morning Bud’s letter arrived, and Das returned to complete his purchase of the rug.
Required:
In the context of the rules governing the creation of contracts, advise:
(a) as to the precise legal nature of Ali’s advertisement;
(b) whether Bud has entered into a binding contract with Ali;
(c) whether Cil has any right of action against Ali;
(d) whether Das has any right of action against Ali.