ACCT%203151%20Business%20PP2

ACCT%203151%20Business%20PP2 - Offer Having serious...

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Unformatted text preview: Offer Having serious intention of commitment in the agreement (Not, just the $!) Communication Certainty (How much$?) Are the terms of the offer certain? Example 1: I would like to sell 4 oranges to you. Example 2: I would like to sell oranges to you at $10. Example 3: I would like to sell my flat in Taikoo Shing to you at $2 million. Offer or invitation to treat? Example 1: $10 for 4 oranges. Example 2: $10 for 4 oranges. Please apply for having them. Example 3: $10 for 4 oranges. Please reply if you are interested in them. Example 4: $10 for 4 oranges. Would you like to buy them? Offer or invitation to treat? Example 1: There is to be refund of your fee if you cannot reduce your weight by one month after using our products. Example 2: Save me! I will give you $1 million. How to terminate an offer? To reject it clearly rather than to clarify the terms To make a new proposal Let it lapses (would the value of the subject matter of the contract fluctuate?) To cancel it before the other party accepts it Has the offer been terminated? Example 1: Q May I pay by credit card? A No! Example 2: Q My computer is for sale at $10,000. Would you like to buy it? A I would buy it at $8,000. Has A breached the contract with B in the following case? A told B: `my offer remains open until Friday.' A sold the goods to C on Wednesday. B accepted the offer on Friday. Has A breached the contract with B in the following case? A told B: `my offer remains open until Friday.' A told B the offer had been revoked on Thursday. B then immediately accepted the offer and he said the offer was still effective as it was not yet Saturday. Has A breached the contract with B in the following case? A told B: `my offer remains open until Friday in consideration of your deposit.' A told B the offer had been revoked on Thursday. B then immediately accepted the offer and he said the offer was still effective as it was not yet Saturday. Acceptance Complete must agree with all the important terms Clear depends on the words used by the offeree Certainty of contract terms is the contract below valid? Property: Flat 5D, Golden Mansion, Taikoo Shing, Quarry Bay, HK Price: $3.5 million Date of handing over of property: [ ] ______[Sd]__________ (Signature of the parties) When has the staff member of a food court accepted the offer of a patron? A: At the cashier area? B: When serving the food to the patron? Is there any agreement between A and B as to the increase of the service fee in the following case? B pays A by autopay each month for A's service. A told B: Increase of your fee with effect from next month if you have no response. B did not reply to A. A increased the fee in the month thereafter. Communication of acceptence Is there a communication method which has been insisted on to be used by the offeror? If yes, such method must be used. If none, any method will do so long as the acceptance has been communicated on time. When has the offeror insisted on the use of a particular communication method? Example 1: Send your reply to our Shatin head office. Example 2: You are required to send your reply to our Shatin head office. Qs: Can the acceptance be faxed to the branch office in Homantin? Timing of different types of communication Revocation of offer: receipt By post By fax and by telephone Acceptance: Sending Time of out time receipt (but only if the use of post is acceptable Can the consumer get warranty cover from the seller? Seller: `To get warranty cover, send the warranty card to me by day 7'. Buyer sent the warranty card to the seller on day 7. Seller got the warranty card on day 8. When has the faxed acceptance been communicated? A: Received at the other end at 10am? B: Read by the offeror at 5pm? Has there been a valid acceptance in the following cases? Acceptance by email Designated email address made by Peter No designated email address made by Peter Peter: out of office auto reply You got an incoming email from xxx (Peter has not yet read it) Presumptions of intention to create legal relations Commercial context: yes Domestic and social context: no Gifts as consideration? Not valid unless made * I hereby give you: by will / deed in accordance with the law a) . . . b) . . . c) . . . _________ (signature) Past consideration is valid if The act has been done because of the other party's request There has been understanding of payment There has been good performance of contract Performance of contractual duty as consideration? Any extra work done (what are the duties under the contract?)? Any `practical benefit' received even though just the same work has been done? Part payment of a debt is NOT consideration because the debtor has not even performed his contractual duty to repay the creditor What happened in the Williams v Roffey Brothers case? Subcontractor (extra fee) Contractor Land developer (penalty if delay) Part payment of a debt is not consideration A owed B $3000. B agreed to accept only $2000 from A. Can B sue A for the balance ($1000) later despite the above agreement? Promissory estoppel Unfair for the creditor to insist on the debtor to perform the contractual duty to repay him when: he clearly allows part payment he willingly allows part payment The debtor does make the part payment (i.e. the debtor has acted on the promise) Promissory estoppel vs the consideration rule A told B: `I will give you a computer.' A did not do so. Can B rely on the doctrine of estoppel to enforce A's promise? Can promissory estoppel be revoked? No, if the promise is related to an event in the past (e.g. forget about the rental last month). Yes, if the promise is related to an event in the future (e.g. you only need to pay 1/3 of the rent next month). ...
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