Contract Law

Kemik · 20 Dec 2007 at 15:19

Hello,

Has anyone here got experience with contract law? I have some coursework to do but need some assistance deciding if an email is an acceptance or counter-offer.

Here's the situation:

On Sat 1st Jan 2007 a newspaper published Bob’s advert stating “1 bottle of wine only £10.00.” Sophie is arranging a party and upon seeing the advert (on 1st Jan) she sends Bob and e-mail stating “I accept your offer – please send me 3 bottles of wine at a price of £30.00.”

Bob is on a trip and does not return until the evening of Tues 4th Jan. He looks at his e-mail that same evening and at 9pm sends an e-mail to Sophie, confirming her order, saying that the wine will be dispatched upon receipt of a cheque for the full amount payable.

That same evening (4th Jan 2007), the wine, is featured on a well-known, late-night, wine show and it receives terrible reviews. Sophie decides that she does not want something that has been described as tasting like “sewage” and rings the telephone number quoted in Bob’s advert, despite it being 10pm. As luck would have it, Bob is still awake and answers the phone. Sophie tells him that she is cancelling her order, but Bob responds by saying “it is too late – you've made a contract when you sent in your order and I have now sent you my acceptance”. When Sophie checks her e-mail, the e-mail from Bob accepting her order is in her inbox.

Is bob's "confirmation" email an acceptance or counter-offer?

Btw, this is only a small amount of the question. The question itself is basically "Advise Sophie of her situation" and I'm going through it's different stages. I'm going to give both sides but I need to decide which is the stronger.

Thanks.

Kemik · 20 Dec 2007 at 15:25

I've got a thick Law for Business book here but it's no help. My lecturer just says "You're doing well. Keep at it!".

Kemik · 20 Dec 2007 at 15:32

The newspaper advert is an invitation to treat. Sophie is making the offer. Consideration and intent to create legal relations is there but I cannot decide if Bob's confirmation email is acceptance or a counter-offer.

I can see that Bob may be adding more conditions by saying he'll only send when he receives payment, making his reply a counter-offer but then again, payment terms were not discussed and it's always expected that the seller receives payment before sending the item. It's common sense. In which case it's acceptance. Possibly Sophie doesn't want to pay via Cheque? Not sure if payment method is a big thing here though.

Distance selling regulations

I don't think I should include this as we haven't even touched it on the course. It's simply a contract law module.

2 - The postal Rule and relating to opening office hours (1st Jan) and the law relating to electronic communications.

I don't think the postal rule counts here as its instant communication. I'll read up on electronic communications. If it's acceptance then Sophie cannot revoke her offer as she's already received the email. If it's a counter-offer then she doesn't agree to the counter-offer and so she's not bound.

Kemik · 20 Dec 2007 at 15:46

Raymond Lin looks like you know a bit about contract law. Seen as I've answered your questions and shown I don't want you to just do my coursework for me could you please give me your opinion on Bob's confirmation email. There are arguments for both acceptance and counter-offer and I will write about them, but at the end of the day I need to be bias to one area or the other and I want it to be the right one.

Kemik · 20 Dec 2007 at 17:41

happy_2008 said:
I remember doing law for my ACCA in June last year, there were sooooo many cases to remember

I'm doing it for my Accounting degree

Kemik · 20 Dec 2007 at 18:56

Where's the consideration in this contract btw. Is it Sophie promising to pay £30 on receipt of the 3 bottles of wine or Bob promising to send the 3 bottles of wine on receipt of £30.

I think its the second one. Does it matter if consideration is in the acceptance and not the offer?

Kemik · 18 Mar 2008 at 11:36

I got 53% for the coursework, which I think is crap for the amount of work I put in. I need 60% for my summer internship. I averaged 61.5% for the semester so I just made it.

I emailed the lecturer and she basically told me it's been to an external examiner, the marks are the same as last year and you cannot get it remarked.

To top it off she said even though there's no case law for email acceptance in England there is some in Europe. That's very annoying. All semester she told us out right there is no case law for email. I done a lot of googling and all said there is no case law.

Looks like I'm stuck with this mark. I've got law again this semester but that's a 3 hour exam. Damm I hate law. I don't want to be a lawyer I want to be an accountant. It's not like the company is going to ask me if this contract is valid. They'll employ a lawyer