Example 5

Example 5 - Ahmed placed the following advertisement in his...

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Ahmed placed the following advertisement in his local newspaper, the Manport Argus: FOR SALE 5 metre recreational vehicle. Superb condition Sleeps five. Many extras included. £35,000 or near offer. Tel. 0664 99795 Stuart telephoned Ahmed and told him that he was very interested in the RV. Ahmed invited Stuart to visit his house on Monday 6 September to inspect the vehicle. After inspecting it, Stuart offered Ahmed £25,000. Ahmed replied that he felt unable to take less than £30,000. Stuart asked for time to think the matter over. Ahmed agreed not to sell the RV before Thursday 9 September. Stuart went home and wrote a letter to Ahmed saying: "I am prepared to pay you £30,000 for the RV. I assume all the crockery and kitchen utensils are included." Stuart posted the letter on the morning of Wednesday 8 September. He used the correct address but omitted the post code and the letter was inadvertently sent to Manport (another town with the same name) in Scotland. It did not finally arrive until Friday 17 September. Meanwhile, on Thursday 9 September in the afternoon Stuart happened to see the RV being driven by Michelle, a dealer in second-hand RVs. Afraid that he had missed the chance to purchase the vehicle Stuart rushed home and telephoned Ahmed. He left a message on Ahmed's answering machine saying that he accepted Ahmed's offer to sell the RV for £35,000 and he did not mind if the kitchen utensils were included or not. Ahmed did not hear the message until the following day. Stuart has since discovered that Ahmed did indeed sell the RV to Michelle on Thursday morning. Advise Stuart. For a valid contract to exist between two or more parties it must be shown that there has been and offer and that that offer has been accepted. In addition there must be an intention from both parties to create legal relations and consideration. We will assume the intention to create legal relations as it is obvious here. The consideration for the parties will be the recreational vehicle on Ahmed’s behalf and the money on Stuart’s behalf. Offer and Acceptance are a little harder to prove and there are some difficulties in this scenario.
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Ahmed’s advertisement in the local newspaper to sell his five metre recreational vehicle for £35,000 cannot be construed as being an offer.An offer is a statement of willingness to be bound by the terms of the offer. Therefore Ahmed must be willing to contract on the terms contained within his advertisement, therefore as he does stipulate that the sale is £35,000 or nearest offer, it is suggests that he is inviting persons to make an offer therefore it will be deemed an invitation to treat. The advertisement would appear to be simply an attempt to open negotiations. This can not be construed as an offer as an offer must be certain in its terms, and this is not as Ahmed says that “many extras are included”, and this is fairly uncertain coupled with the effect that by saying “or nearest offer”, Ahmed is inviting offers. In any event if this was deemed an offer, Stuart has made an offer of £25,000 which operates in
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Example 5 - Ahmed placed the following advertisement in his...

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