Subject: Aspect of Contract . A. Is there a valid contract in the following situ
ID: 427555 • Letter: S
Question
Subject: Aspect of Contract
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A. Is there a valid contract in the following situations? Give reasons for your answers.
1. Ahmed offers to sell his horse to Shaikha for AED6000. Shaikha says she would buy the horse for AED4000. Ahmed refuses to sell at that price. Shaikha then says she will pay AED6000. A counteroffer cancels the first offer. Apply here?
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2. On Monday, Amer writes to Maryam offering to sell her a painting. He says he will keep the offer open until 3pm on Thursday. On Tuesday, Amer changes his mind and sends a fax to Maryam at 11am revoking the offer. Maryam’s fax machine had run out of paper and she does not receive the fax until Wednesday. On Tuesday, Maryam had posted her acceptance of the offer at 2pm. What does the postal rule provide?
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3. Fatima sent out a circular to all businesses in the area offering to sell her fleet of company vans and asks for tenders to be submitted. Mary’s tender is the highest but Fatima refuses to sell her the cars. Only if fax agreed as method of communication?
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Note: in the above question the bold requirements are important to do
Explanation / Answer
1. Counter Offer means when offeree gives qualified acceptance subject to modifications in terms of original offer then it results to rejection of original offer. here this provison applied as Shaikha give counter offer of AED4000 against the original offer that results into rejection of original offer. here there is no obligation on Ahmed to accept the contract at his first said agreed price as now agreed by Shaikha he can reject the offer.
2.As per Postal Rule it is applied only to acceptance. as when it is posted then it is treated as starting of acceptance.ther contractual letters (such as one revoking the offer) do not take effect until the letter is delivered. The implication of this is that it is possible for a letter of acceptance to be posted after a letter of revocation of the offer has been posted but before it is delivered, and acceptance will be complete at the time that the letter of acceptance was posted—the offeror's revocation would be inoperative.
Here in the present case the contract is treated as Accepted as it is send on tuesday 2pm as acceptance starts. the revoking offer of Maryam received on Wednesday so it is inoperative.
3. Ii Fax agreed as method of Communication then-as per contract law f you accept an offer by fax, it will probably bedeemedto be accepted as it is printedout by the offeror's fax machine, whether or not there is anyone there to receive it.
If we analyse the present case Fatima can not refuse to sell her the cars as Mary's bid is highest and she send her the tender submission by mail here it is deemed to be accepted there is no such thing to accept or reject.