Bcl Case

QUESTION 1

Is there a contract between Joe and Ah Hee?

There is a contract if there is an agreement between the parties, which means that the acceptance of an offer has been communicated to the offeror.

Is there an offer?

Whether Joe has made an offer is determined objectively by reference to what an ordinary person reading the document would think it was intended (Carbolic Smoke Ball). On the present fact, Joe wrote a letter to Ah Hee offering to sell his car on 7th November, It is strongly suggest that Joe had make an offer to Ah Hee.

Assuming I am wrong, other possibilities are being explored.

This is not an unilateral contracts because the letter does not required Ah Hee to accept the offer by performing his or her side of bargain therefore can be distinguished from Carbolic Smoke Ball.

However, Ah Hee may argue that the letter constitutes an invitation to treat but not an offer. Ah Hee may argue that the letter merely invite him to enter into negotiations (Pharmaceutical Society v Boots Cash Chemists). If that is the case, he will be making an offer when he informed Joe about his intention to enter into negotiations and hence there is no contract until Joe has accepted that offer. Nevertheless, this argument is unlikely to be successful because the sale of the car is not placed in a shop window or shelves of a self-service store hence the present fact should be distinguished from invitation to treat.

Therefore, it is clear that Joe has made an offer to Ah Hee in relation to the sale of the car. While the present fact does not suggest any termination of an offer on the part of Joe, the offer is valid and effective on 7th November.

Is there an acceptance?

An acceptance must result in a real consensus between the parties. An acceptance is generally effective when it is communicated to the offeror. The letter wrote and posted by Ah Hee on 15th November may be a conduct constituting an acceptance but the acceptance does not communicated to Joe immediately. Hence, Ah Hee may argue that sending letter accepting the offer does not constitute acceptance as there is no real consensus between Joe and Ah Hee at that point of time.

Nevertheless, as the letter is posted, the postal rule may apply. Where the postal rule does apply, it has the effect that a contract is made when the acceptance is posted, even if it is received some time later. As Joe is making an offer by writing a letter, it is reasonably accepted that an acceptance would be send by post too. Hence, it is a strong case that sending letter accepting the offer would constitute an acceptance and postal rule apply. Therefore, there is an acceptance by Ah Hee once he posted the letter on 15th November.

Tentatively, there is contract