Required
(a) Identify whether the notice Ann placed in her gallery window is an offer or an invitation to treat
(2 marks)
(b) State whether Ann has entered into a binding contract with Chas (2 marks)
(c) State whether Ann has entered into a binding contract with Dave (2 marks)
(Total = 6 marks)
(a) An offer is a definite promise to be bound on specific terms. It must be certain in its terms and can be made to a particular person or to a class of persons. An invitation to treat is an indication that a person is prepared to receive offers with a view to entering into a binding contract. It is generally accepted that goods displayed in a shop window give rise to an invitation to treat rather than an offer. Therefore, the notice in Ann's window is almost certainly an invitation to treat.
(b) Because the parties negotiated face-to-face it is likely that the use of the post is outside the contemplation of the parties and therefore any acceptance should not be by post. However, Chas' acceptance arrived within the stipulated time and therefore an enforceable contract for sale exists from this point.
(c) It is probable that Dave, however, has not entered into an enforceable contract for sale with Ann because his acceptance was not communicated by noon on Monday and the postal rule was not in the reasonable contemplation of the parties.
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