Whether there is any contract between Mike and Bob or not?
Offer can be terminated only by rejecting it, and it is not possible offeree cannot accept the offer if once they reject it. There are two ways to reject the offer one is making a counter offer by offeree and second is direct refusal of the offer. There are some circumstances in which counter offer are considered as purported acceptance by Court. Therefore, it is clear that counter offer is considered as rejection of existing offer made by offeror, even in case new terms stated by offeree does not have any material effect on the case. It must be noted that rejection of offer is deemed as valid only when its communication is completed. Hyde v Wrench (1840) Beav 334 is the landmark case for this concept (ACL, n.d.).
On 1st January, Offer letter was send by Mike to Bob in which he offer to purchase computers from Bob, and on 2nd January counter offer was made by Bob to Mike but this offer was rejected by Mike on 3rd January. After sometime, offer made by Mike was accepted by Bob on 1st January because he changed his mind and he also deliver the consignment of computers to Mike. Payment related to computers send by Bob was rejected by mike because Mike already booked computers from some other dealers. Therefore, Mike has right to refuse the payment because he made the counter offer on 2nd January and this counter offer is deemed as rejection of offer stated by Mike on 1st January. As per general rule, if once offeree reject the offer then it is not possible to accept that offer again. Therefore, there is no legal obligation on mike to make the payment of computers to Bob.
Mike and Bob are not legally liable towards each another in this case because there is no valid contract between the parties.
Whether there is any legal obligation on Tom to purchase hard drives from Bob?
Communication of acceptance is the important aspect of valid acceptance, and for making the acceptance effective it is necessary that it must be communicated by the offeree to offeror. Acceptance is not effective if offeree just presumed it in his mental capacity. Agreement is enforceable by law only when communication of acceptance is completed by the parties. When offeree sends the communication of acceptance on his part then only there is valid agreement between the parties. Communication of acceptance is complete when such acceptance is provided by the offeree to the offeror even though he did not read the acceptance. Postal rule is the special rule and this rule is applied if acceptance is communicated by the way of letter and in case letter of acceptance was posted by offeree then communication related to acceptance is completed. This can be understood through case Adams v Lindsell (1818) 1 B & Ald 681 (ACL, n.d.).
Offer letter was send by Bob to Tom on 10th January for the purpose of purchasing hard drives, and after two days that was on 12th January offer was accepted by Tom which was made by Bob by posting him letter but on 15th January this letter was reached to Bob. On 14th January Bob send cancellation email to Tom for the purpose of cancelling the offer made on 10th January. When hard drives are delivered by Tom to Bob then he refuse to make payment.
In this case, Tom sends the acceptance letter by Post and that’s why postal rule is applied in this case, and according to this rule communication of acceptance is completed when Tom posted letter of acceptance to Bob.
Contract between both the parties in this case is enforceable by law, and Bob is liable to make payment to Tom.
Whether any contract is exists between the parties on the basis of past consideration?
Consideration is the most important element of valid contract, and it must be there in the contract either with the promise or after the promise. If consideration in contract is presented pre dates then in such case consideration is not considered as good. In other words, past consideration is not considered as good consideration. Roscola v Thomas is the case through which past consideration can be understood. In this case contract between the parties is not valid because consideration presented in the contract is occurred before the promise is made.
On 1st February, Steve made offer to the Bob for giving him new computer because he took care of the Cat of Bob when Bob went for holidays. Bob agreed but later he refuses because of fewer sales. In this there is no valid contract between the parties because consideration is stipulated before the promise has been made.
Bob is not liable to give new computer to Steve in the present case.
Whether form signed by Bob imposed any legal obligation on Bob to purchase vehicle?
Acceptance is valid when free will is present in the acceptance, and for the purpose of legal enforcement of contract it is necessary that parties must provide their free consent. If there is any mistake occurred while enforcement of contract such as parties does not understand the effect of the contract or parties agreed on different terms then in such case parties can declare the contract void.
In this case, Marie sent offer letter to Bob for purchasing the vehicle on e mail and by mistake Bob signed that contract. In this there is no free consent in the form and Bob signed the form by believing that form contains any other matter. Therefore, here is no valid contract between the parties because free will is not present.
Bob is not liable to purchase the vehicle from Marie, and there is no valid contract between the parties.
ACL. Agreement. Retrieved on 22nd March 2017 from:
ACL. Consideration. Retrieved on 22nd March 2017 from:
Adams v Lindsell (1818) 1 B & Ald 681.
Hyde v Wrench (1840) Beav 334.
Roscola v Thomas (1842) 3 QB 234.