In order to make a contract we need to have the four essentials to make legally binding.
Alan has advertised to sell his textbook for $200 via his Facebook account on 1 November 2015. This will be the invitation to treat.
He mentions that the textbook was given to him by his school, without making him pay a single cent.
He has given a false impression that he was awarded with Distinction, even though he has received “Credit” for this module.
Bernard has offered $150 for his book on 2 November 2015 in his Facebook post. Alan responded to him on 3 November 2015 that he was selling his book at $200 and that there was an offer pending confirmation. After some consideration, Bernand informed him that he decided to buy his book for $200 and mailed $200 cash via mail on 4 November 2018 and Alan received it on 5 November 2015 (5pm). Alan passed his original book with his notes written in it to him on 7 November 2018.
Charleen has offered $200 for his book on 2 November 2015 (morning) verbally and have thought that her brother has agreed with the price and to pass the money to him on 6 November 2015.
Damien sent an SMS to him, offering $200 and to pass the money to him on 4 November 2015. However, he did not receive any reply from him and he passed the money to him on 4 November 2015 for the payment of the book. Alan kept the payment and mentioned that he will pass the book to him on 7 November 2015. Alan passed the book that he has bought from the bookshop with his handwritten notes to him on 7 November 2015.
In this case, a legal contract has formed between Alan and Damien. Bernard counter offer it means that the offered is terminated. As for Charleen, she did not receive any explicit agreement and acceptance from her brother for the confirmation of the purchase of the book.
Alan has offered his book for $200 and both Bernard and Damien has accepted his offer on 4 November 2015.
Alan has the legal capacity to legally binding contract with Bernard and Damien, as he is of sound mind and has the capacity to make decisions to sell and accept offers for his book.
Alan has given agreement to both parties that he will pass the book when he receive the cash.
An offer and acceptance has been formed when Alan has offered his book for sale and that he has Damien’s case on 4 November 2015 respectively. Just like in the case of Harvey v Facey 1893 AC 552 Privy Council, Alan (Offeror) has the intention to sell the book to his friends, Damien (Offerers) and to be bound in the binding agreement.
Consideration is enough and was moved from the promise, as Alan has received some form of monetary benefit from Bernard, Damien and Charleen. Alan has agreed to make good of his promise when he received the money from Bernard and Damien, as he mentioned that he will pass the book to them on 7 November 2015.
For Charleen’s issues, he was not able to proceed with the promise as he did not agree with her offer explicitly. He was thinking about his beloved soccer team’s performance and just nodded before heading to sleep. And he did not know that his sister has placed $200 on his table on 7 November 2015.
When he has posted an offer to sell his book via Facebook, he has provided an invitation to treat, in order to attract potential buyers to buy his book by stating that he has scored “Distinction” and he has very useful handwritten notes which could help them to score better grades.
Therefore, Alan could be liable and have the intention to enter into legal relations with all the parties involed for the sale of his book.
Bernard V Alan
Bernard has counter-offered at a price of $150 on 2 November 2015. After consideration Bernard still decided to purchase to buy his book at $200. When Bernard counter offer this means that the first offered is being destroyed.
Hyde v. Wrench (1840). “The defendant, Mr Wrench, offered to sell his farm that belong to him to the complainant, Mr Hyde. He offered to sell the farm for £1,200, but this was rejected by Mr Hyde. The defendant decided to write to the complainant with counter offer; this time to sell the farm to him for £1,000. He made it clear that this would be his final offer regarding the property. In response, Mr Hyde offered £950 for the farm in his letter. This was refused by Mr Wrench and he confirmed this with the complainant. Mr Hyde then agreed to buy the farm for £1,000, which was the sum that had previously been offered. However, Mr Wrench refused to sell his farm”. (Teacher, n.d.)
Even Bernard still decided to purchase the book at $200 he places $200 cash into an envelope and post it to Alan. Although Bernard has paid for the textbook by mailing the cash to him and Alan received the cash on 5 November. The contract is not legally bind between both of them. It is not communicated between the two parties about the second offer. Postal Rule does not apply although the cash is mail out.
Charleen V Alan
As Charleen is currently doing her GCE “O” levels this year, she was considered as a Minor as she is under 18 years old. The law mentioned that it will protect minors from entering into a legal contract, as they will be vulnerable on their actions and need to be protected in the eyes of the law.
Purchasing of the book will be considered as “Necessaries” to her, as it will be beneficial to her academic development.
However, as her brother did not accept her offer explicitly and the consent is quite vague. Therefore, Alan will not be liable for any damages caused that his sister did not have the book to allow her to score well in that subject.
She can get her $200 from his brother, since her brother did not give the book to her.
Damien V Alan
Damien can sue Alan for damages and also sue Alan for mispresenting and withdrawal contract as Alan give a incorrect information about his material.
(Esmaili, 2017) Any method of settling disputes without going to the court. Arbitration and mediation are the two major forms of ADR. (ADR).
When two parties having a dispute, they can discuss find a way to settle themselves. The advantages is private and it’s very cheap. Even if negotiation is unsuccessful in the early stages of argument and court proceeding start solicitors will continue to negotiate on their client behalf. This result in many cases being settled out of court.
Mediation is a both parties win win process aimed at settling disputes amicably reaching an promise without litigation. They usually use a neutral third parties to help to settle the issues. Mediator cannot make decision but able to give them ideas to help them settle for their issues. Mediation able to maintain relations. This is not legally binding on the parties. Mediation can save a cost for not going to court. One of the disadvantages is there might be no conclusion in the settlement.
Arbitration is the suggestion of a disputed matter to an impartial the arbitrator for decision.
It is the most official methods that use to settle disputes without going to the court. Where the parties with a disagreement pass their dispute to a thirtd party, who will make a judgement on their behalf. The decision of the arbitrator is binding. Arbitration usually can settle fast. Disadvantages will be the decision is final.
Esmaili, T. (2017, June). Cornell Law School. Retrieved from Legal Information Institute: https://www.law.cornell.edu/wex/alternative_dispute_resolution
Teacher, L. (n.d.). The Law Essay Professionals. Retrieved from Law case: https://www.lawteacher.net/cases/hyde-v-wrench.php