Contract law ~ Offer & Acceptance Essay Example

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Contract Law

An agreement might be characterized as a consensus made between at least two companies or people that the courts will uphold (McKendrick, 45, 2009). Contract laws require that the individuals be getting into an agreement fulfill some requirements set out in the law. The court is then obligated to authorize the contract according to the terms set by the parties, and the parties should take the obligation set by the contract.

In this way, it is essential for Johnson to comprehend that it is not the subjective expectations of Sandra that decide the lawful impact of her actions or words except the objective derivation from them. In this case, the offer is viewed by target aim which is the understanding the sensible individual acting as the offeree would put upon the announcement or activity of the offeror. For this situation, an offer is an outflow of ability to contract on specific terms. It must be made with the expectation that it will get to be authoritative upon acknowledgment. There must be no further transactions or discourses required.

It is important for Johnson to understand that it is not what Sandra expects that determines the lawful outcome of her actions or words but it the objective insinuation that can be derived from those words or actions. Hence, the implication is that the offer is deduced by target aim which is the understanding the sensible individual who is the offeree would exert in the announcement or the offeror’s activity. Hence, in this situation, offers are an outflow of the ability to get into a contract based on specific conditions. The contract must be bound upholding the expectation that authority will be upheld upon acknowledgment. With a contract, all conditions must be identified and there should not be further transaction or discourses needed.

The terms of an offer are depicted using two cases that included Manchester City Council as the defendant which allows for scrutiny of Johnson’s predicament. The Council chose to offer its houses to current occupants. Two of the cases presented petitioners who made a contract with the council. Afterward, the Council determined not to offer to the house unless it was bound by a contract to do so. In these two cases, the question emerged in the matter whether the council was bound by a contract or not.

In a certain case, Storer v Manchester City Council (1974), the court of appeal established that the contract was bounding. The store had received correspondence from the council that indicated that it would be bounding upon the store’s acknowledgment. Storer only needed to sign the report and give it back so as to bind himself to the agreement.

Conversely, in Gibson v Manchester City Council (1979), a report was sent to Gibson by the council which requested him to welcome a formal purchase, and it indicated that the council ‘might be set up to offer’ the house to him. Gibson marked up the report and gave it back. The House of the Lords concluded that agreement had not been finished up since the council had not proclaimed an offer fit for being acknowledged. Master Diplock expressed: The words’ might be set up to offer’ are lethal… Which is similar to the welcome which should be noted that, for the offer to be acknowledged, the council needed to make a formal application for the purchase. The letter should set the budgetary specifications on which the court might be set up to consider a deal and buy at the appointed time.

An imperative refinement between the cases is for Storer’s situation an understanding concerning cost was set upon, while for Gibson’s situation there w as no understanding. In Gibson’s situation, vital terms still should have been resolved. It is critical to acknowledge from the start that not all interchanges will be offers. They will do not have the essential aim to be bound upon acknowledgment.

In this case, a certain party states that he or she means to accomplish a certain thing.

The statement varies from being an offer since the person does not express that he or she will meet some conditions. For the case of Harris v Nickerson (1873) delineates this point. The barker’s promotion was an announcement that he planned to offer certain things; it was indication that he would meet the conditions.

Subsequently, from this detail, it is clear that Johnson ought not to implement the guarantee made by Sandra since Sandra did not make an offer. From the passage, Sandra was crushed when she found that she was experiencing breast cancer and she was appreciative as Johnson took extraordinary care of her. She told Johnson that consequently of his consideration she would give him half of the legacy cash that her auntie left her. In any case, after Sandra showed signs of improvement she got another boyfriend.

Sandra just imparted her expectation to give half of the cash to Johnson however this cannot be taken as an offer. Passing by the instance of Harris v Nickerson the salesperson’s commercial showed that he planned to offer the items yet it was not an offer. Also, passing by the cases including Manchester City Council, the storer’s case had a concession to the cost and henceforth the agreement was authoritative, while in the Gibson’s case, it was not present. Like in the Gibson’s case, In Johnson’s circumstance, imperative terms still should have been characterized, for example, the measure of cash he would get, regardless of whether they must be together for him to get the cash and accurately when he would get the cash. Henceforth, from the beginning, the correspondence was not an offer as Sandra did not show the essential aim to be bound upon acknowledgment.

The case additionally highlights a case of supply of information where one party gives information to another party to please the other party. The promise is not planned to be followed up. As per Harvey v Facey (1893) one individual sent a telegraph, in light of the question of the other, what the most reduced cost was that he would acknowledge for his possessions. The Privy Council presumed that there was no agreement between the parties since Facey had not exactly addressed the question regarding whether they would offer and the sign of the most reduced cost was the only response to a demand for information and not an offer. Henceforth, there was no proof for the aim that the message sent by Facey was an offer. In this light, the circumstance additionally applies to Johnson as Sandra could have provided the information just to please Johnson as he had done so much for her. Johnson ought not to follow up on the announcement since Sandra had not correctly addressed the question on when she would give the cash and whether them being together would be a condition.

Therefore, an offer exists at whatever point the objective implication from the offeror’s proclamation or lead is that she expects to submit herself lawfully to the prerequisites she proposes (McKendrick, 53, 2009). Such dedication happens without the need for further transactions. Numerous correspondences contracts do not have this fundamental goal and subsequently, won’t offer. They might be articulations of intentions, supplies of information or solicitations to treat.


, E McKendrickContract Law. 8th ed. Palgrave 2009

England Law Reports. Retrieved from; pdf_contract.Cases…/3_

Harris v Nickerson (Queens Bench Division) Retrieved from;

Harvey v Facey. Retrieved from; /