Basic Rules of Offer, Acceptance, and Invitation to Treat

Complete 10 pages APA formatted article: Basic Rules of Offer, Acceptance, and Invitation to Treat. Owing to a massive order from the British School of Motoring, Vauxhall Motors had exhausted its supply of Vectras. Nevertheless, the Sales Manager e-mailed Peter on October 8th in the following terms: “I am delighted to accept your order. You can collect your Vectra, as specified, in the week commencing November 6th. Please go to your nearest Vauxhall showroom. Is this arrangement acceptable to you?” Peter immediately posted a letter to the Sales Manager which stated: “Great. I look forward to taking delivery in the very near future”. However, later that afternoon, Peter decided that he must have a new car immediately. He, therefore, telephoned the Sales Manager in order to cancel his order. The Sales Manager had already gone home so Peter left a recorded message on an answering machine which the Manager listened to the following morning. By this time Peter’s acceptance letter had arrived but remained unopened on the Sales Manager’s desk. The question to be decided in the light of the facts of the case and the principles of contract law is that Is there a binding agreement between the two parties? This question pertains to the basic tenets of the contract law i.e. Offer, Acceptance and the acceptance of the offer, revocation of the offer and the modes of acceptance etc. In simple terms “An agreement enforceable by law is a contract” and “Every promise and every set of promises forming the consideration for each other is an agreement” In an agreement there is promise from both the sides and if we talk about ‘Promise’, it can be defined as “When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise” Thus when there is a proposal from one side and the acceptance of that proposal by the other side, it results in a promise. This promise from the two parties to one another is known as an agreement. Also, all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object and are not hereby expressly declared to be void.

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