Contract Law -Urgent!
please advise, Thank you!
Mary wishes to shell her mobile phone. 1Jan, a friend Sam asks how much she wants for it. Mary replies "I am willing to accept 3000 for it" same day, Sam tells James,Mary wants to sell her mobile for 3000.
Can the offer be made only to Sam or can extend to James by Sam?
To be continue 1/4
Morning of 2Jan, Sam post a letter of acceptance to Mary, letter has inadequate postage stamp. Same day evening, James phones Mary and leaves a telephone message saying "I am willing to pay 3000 for your mobile" / if there is an offer to James?
To be continue 2/4
Mary does not check her telephone messages until morning of 4Jan, she post a letter to him saying 'we have a deal and the mobile phone is yours' Same day afternoon, Mary got the letter of acceptance from Sam.
is it a binding contract? Is Mary breach of agreement with Sam?
Advise Mary! Is there a binding contract with Sam or with James? is there any revocation Mary need to notice? She doesn't, is it mean she break of agreement with Sam?
Thank you for your quick reply, but still there are some question I don't understand, you said: the contract is formed at the time of posting the letter of acceptance, However, the letter is inadequate postage stamp,
that mean the contract is formed at the time of arrived (i.e. 4 Jan evening), so, is there still a Binding Contract between Sam and Mary? Because Mary didn't send a revocation letter before Sam accepted and now Mary post a letter to James saying she will sell him the mobile phone,
is that mean there is Binding Contract with James and breach of contract with Sam? if so, what is the situation of Sam? I am wondering whether James or Sam has formed a contract with Mary? And is there any Breach of Contract? Please Advise, thank you!
P.S. extend offer is it like an invitation to treat? no need to give notice of revocation if the 'offeror' want to withdraw the 'offer'? in this case, does Mary need to notice James if she want to withdraw the 'offer'?
P.S. extend offer is it like an invitation to treat? no need to give notice of revocation if the 'offeror' want to withdraw the' offer'? in this case, does Mary need to notice James if she want to withdraw the 'offer'?
- ElvinLv 61 十年前最愛解答
My contract law is a bit rusty, but I will try my best to explain:
1. I doubt if it is an extended offer. The question seems to portrait a face to face discussion between Mary and Sam. So unlike a poster for sale stick to the window of a car, it is not an offer made to everyone who can see it. Also, the question evolves in such a way to lead you to consider James making an offer to Mary, instead of accepting the offer of Mary. So you should be able to argue that no offer was made to James on 1/1 (James no being the party in the offer).
2. As for Sam, there is several issues:
a) accept by post: since offer was made face to face, is it reasonable to accept by post? You may need to consider the circumstances. Is Sam living in an isolated place so that he cannot call to accept? Are they meeting often so that Sam can accept face to face?
b) insufficient postage: I think you point is correct but I can't find a case to support it. Postal rule will apply for acceptance if there is sufficient postage. Without sufficient postage, it is not reasonable to expect it to arrive at all.
I think the question is inviting you to argue on these points. Even if Sam's acceptance is valid on 4/1 afternoon, there is no breach of contract because Sam knows that there is only one mobile. It is like a shop which has limited stock. So an implied term in the offer will be if the item is still available.
3. As for James, the transaction goes as 2/1 James offer to Mary to buy her mobile, and 4/1 Mary send letter to James to accept. It seems to complete the deal. However, postal rule arguably is for the accepting party to assert. So if Mary calls up James before the letter arrive and withdraw her acceptance / counter-offer, there is no deal.
You will still need to flesh out the above with cases.
2007-02-24 13:20:36 補充：
An invitation to treat is an action inviting other parties to make an offer to form a contract. In this case, James' message to Mary on 2nd Jan is more like an offer because one hearing the statement would think he meant it to be binding once accepted.