IntroductionThe main issues from the case studies are discussing whether there is an agreement in a contract be-tween Alan, the defendant and the three plaintiffs (Bernard, Charlene, and Damien). A contract is anagreement between two or more parties that can be done verbally, conduct or in writing that are legally binding and creates rights and obligations which is legally enforceable in law. There are fouressentials to create a legally binding contract; Legal capacity, Agreement, Consideration, and Inten-tion to create legal relationship. There should be an offer and acceptance in an agreement. A con-tract is not valid if one of the essentials are missing. There are two parties that involved in an offer: Offerer and Offeree. The party that makes the offer is the offerer, and the party that is receiving the offer is the offeree. According to the case study, Alan decided to sell his “Commercial Law” textbook through his Face-book account and post the offer in his account. He is wishing that one of his friends that are apply-ing in Kaplan would like to buy the book and give the money by 5th of November 2015. Not so long after that, there are three buyers (Bernard, Charlene, an Damien) who contacted Alan in willingto purchase the item. BernardLegal IssuesThe legal issue in this case relates to offer and acceptance whether there is a contract between them both. The specific issue in the question is counter-offer.Relevant LawOffer is an invitation communicated by one party to another parties to enter a legally binding con-tract on certain terms. The offer can be made in written document, verbally or implied by conduct. An offer must be definite promise that is made by the offeror to the offeree to be bound by particu-lar terms. However, there are many ways to terminate an offer; Lapse of time, Counter-offer, Death of offeror, and Revocation of the offer by the offeror (Withdrawal). Acceptance is the situation when an offer is accepted by the offeree through words or actions. Keep being in silence will not considered as an acceptance or bound into a contract. It is very important to communicate about the offer to the promisor to make the contract valid (Yihan, Lee and Tham, 2015). But, for this case, it 1
is more focusing on the counter-offer. Counter-offer is when an offeree makes a negotiation from the original offer for a final contract which affectively eliminates the prior offer. It requires an ac-ceptance from the offeror under the terms of the counter-offer or there will be no contract. The of-feree will make the new offer and it is up to the offerer to accept or decline. Hyde v Wrench (1840).ApplicationBernard as the first buyer contacted Alan and making a new offer in which Bernard is willing only to pay $150 instead of $200. The counter-offer made by Bernard is considered as a new offer as the original offer is not valid anymore and there will be no more contract. If a new offer was formed, Alan could think that the previous offer had been rejected by Bernard and the offer got terminated.