Part 1 Contract Law: Albion Ltd.

1195 words - 5 pages

The area of law in this story is Contract law. A ‘contract’ is a written legally binding agreement consisting of typically an offer and acceptance, between individuals or companies, who have to fulfil the legal requirements.
The contract involved as stated, an “offer”, which is a communication of willingness to carry out an action on certain circumstances, which are made with the purpose that an compulsory agreement will exist once it is accepted, and an ‘acceptance’ which is the ultimate and complete agreement to all of the terms of the offer.
There are two types of offer, which are; ‘unilateral offer’, that is capable of being made to the world as whole- Bowerman v ABTA, and ‘bilateral offer’ which is made to a certain individual or group.
In this specific story, it can be seen that, there has been a bilateral offer that is made to certain individuals which are in the same category of expertise; who are Basil and David, which were offered the same job by Albion Ltd.
As they both requested further detail rather than providing a clear acceptance, it can be seen that the offer can still be considered as open.
It can also be seen that a short period after on May 22nd, there had been a bilateral offer by Albion Ltd to Basil only, offering a job of becoming the sole distributor of the stapler with a 10% commission. Albion Ltd makes it clear that, if an answer is not received by 31 May, it will be assumed that it is acceptable to him.
In order to get an acceptance, it must be considered that it is unequivocal and unconditional, and that the general rule of the acceptance is followed, therefore the acceptance must be communicated to the other party- Entores v Miles Far East Corporation.
An acceptance to an offer can be a written document, orally accepted, and by conduct- Brogden v Metropolitan
The postal acceptance rule makes it clear that the acceptance occurs immediately the letter is validly posted- Adams v Lindsell.
The action of Basil posting a first class letter to Albion Ltd confirming his acceptance to the offer shows that there has been an unequivocal and unconditional acceptance which is communicated to Albion Ltd in a written form.
Therefore, an agreement between Albion Ltd and Basil had been made as there had been an offer and acceptance.

A ‘revocation’ for the offer is divided into two by; ‘bilateral contracts’ where an offer can be revoked before the acceptance- Payne v Cave, and must be communicated to the offeree- Byrne v Van Tienhoven and ‘unilateral contracts’, which when made, involve an implication of undertaking the person who receives and accepts an offer, the courts may indicate that the responsibility the accepter would be given, would be a rational opportunity to perform the contract- Errington v Errington and Woods.

In this case, it is clear to see an attempted revocation made by Albion Ltd, as they telephoned Basil to tell that the post of sole distributor is no longer...

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