Question
According to the principles of offer and acceptance in the law of contract, consider the following situations by applying the relevant statutory provisions and case
According to the principles of offer and acceptance in the law of contract, consider the following situations by applying the relevant statutory provisions and case laws.
Mark offered to purchase Nathan's car (Registration number YY456) on 31 Jan 2020. The price offered was RM 75 000.
Assume the following responses occurred on the dates stated, discuss whether Nathan or Mark can enforce the agreement in below situation.
Situation: Nathan responded by email by 7th February in the following manner:
"Mark - received your offer. Shall consult with my wife. We are talking cash I presume."
There was no response from Mark. In the meantime, Nathan consulted his wife and they agreed to a price of RM80,000 and informed Mark about this by phone. After putting down the phone, Nathan received an offer from Ryan for the same car for RM85,000. Nathan immediately accepted Ryan's offer. Mark not knowing what had happened, called and agreed to pay RM80,000 in cash.
Points to add on: Nathan's answer - acceptance? Counter offer? Asking further about the offer? Apply the cases of Harvey v Facey, Gibson's case, Carlill v Carbolic Smoke Ball, Stevenson v Mc Lean.
No response from Mark - presume no knowledge... email requires real communication.
Change of price - RM 80 000. This is a counter offer or a new offer made by Nathan to Mark. Not an acceptance. Communication by phone. Presumption - no YES response from Mark means this is still offer open for acceptance by Mark.
Ryan - RM 85 000. Offer and immediately accepted by Mark. The issue - what is the legal right of Mark, can he enforce his acceptance? The issue of withdrawal of the offer must be discussed. Should be communicated before acceptance otherwise it is not effective. Nathan seems to not communicate to Mark about any withdrawal of his offer of RM 80 000. Mark's response can be argued as a valid acceptance.
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