Kelly's Contract Essay Example | Topics and Well Written Essays - 1500 words

Kelly's Contract - Essay Example l contain a definitive promise providing the other party with an unambiguous option to accept or decline the offer.1 An offer constitutes the starting point of a contract and must be stated with clarity. In other words the person receiving the offer must be able to determine from the offer exactly what it is that is being offered as well as the terms of the offer.2 Kelly’s offer is for the sale of two black limousines for the 15,000 pounds. Kelly’s offer is in the form of an advertisement and typically an advertisement is treated as an â€Å"invitation to treat†particularly since it usually lacks specificity. This is usually the case in advertisements for the sale of goods.3 In Carlill v Carbolic Smoke Ball Co Ltd (1893) 1 QB 256 however, it was held that if an advertisement was presented with sufficient clarity it could constitute a valid offer.4 Once an offer with sufficient specificity to purchase the advertised goods is made and that offer is accepted by the vendor it is possible for a legally binding contract to be formed.5 Based on these rulings Kelly’s advertisement constitutes a valid offer, acceptance of which is capable of forming a legally binding contract. The offer made to Sarah via email for the sale of the two limousines is also a valid offer. However, Sarah’s response is problematic for Sarah since it did not mirror the actual offer and by implication represented a counter-offer. Sarah’s insistence that the limousines be sprayed white functions as a rejection of Kelly’s offer. A counter-offer is made when new terms are injected and are required to be accepted.6 Sarah’s counter-offer was made via email. In circumstances where communication of an acceptance is made via an instantaneous method such as an email, the offer is effective at the time of remittance.7 It is not certain that Kelly received the email, but even if she did not receive the email it will not negate communication of the counter-offer. Kelly is deemed to have