for contract there must be an offer and acceptance.if there is no offer or no acceptance the there is no contract
Contract law
A offers to sell a car for $50,000 to B. A sends a telex to B. B sends a post to accept the offer on the same day, but to a wrong address. So he sends another telex to A the next day but A fails to notice it as he is late to work. A receives another offer of $60,000 from C which A accepts. A sends a revocation to B at a time he knows B won't see the telex. B receives telex the next day. He sends a telex to A but A refuses to sell it to B. So B sues A for breach of contract. How to advise these parties? Is there any contract formed?
Asked 10 years ago in Business Law
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5 Answers
it appears to be a query for some assignment given to you .
once A offer is accepted by B a contract has been entered into by parties . it is immaterial whether A saw it on same day or later . A cant sell car to C . if A has sold car to C breach of contract has taken place and A can be sued for damages under the contract
There is no meeting of mind between A and B. Hence there is no binding contract between A and B. A can sell his car to C.
when acceptance of offer is put through course of transmission the contract is complete. In this case when B sends telex to A the contract is complete.
The contract came into existence as soon as B sent the telex to A notwithstanding the fact that A did not notice it. Hence, it follows that A could not have sold it to C.
