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Case Study Example

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The issues involved in this case relate to submission of a valid buy offer by a prospective buyer, acceptance of the buy offer by the owner conveyed through postal mail within the validity date, a change of decision by the owner, conveyed via telephone, within the period of…
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Realty can convey its decision in any manner within the validity period and it chose to initially accept the offer by a postal communication. This is a valid acceptance and is binding on Realty. The act of revocation (within the validity period) took place before the postal acceptance reached Jettison.
Acceptance once made is irrevocable and binds both parties. However, under the English Law this rule is confined in its operation only to a postal acceptance. In other cases, according to Anson,”…an acceptance can be revoked at any time before acceptance is complete, provided of course, that the revocation itself is communicated before the acceptance arrives” (Law of Contract, pp.50-51, as quoted in Law of Contracts, Bajaj & Bajaj, 2005. p.28). Thus, Realty’s acceptance is legal and binding on itself.
The issues involved in this case relate to a valid contract for service, genuine mistake of fact and revision of contract terms. JetKlean commenced its service in good faith according to the terms of the contract but realized that its earlier understanding of the condition of the jetskis was incorrect which led to under-valuation of the service needed. According to the law, ‘Where both parties to an agreement are under a mistake as to matter of fact essential to the agreement, the agreement is void’. This is a case of mistake of fact and JetKlean is entitled to renegotiate the service charges, which may be accepted or rejected by Jettison. With regard to the jetskis which were already serviced by JetKlean, they are entitled to proportionate payment according to the terms of the original contract. Jettison’s decision to accept the increased price is correct in the given circumstances.
Glory Pieces offered to supply Hungarian made hand-blown crystal goblets at a price of $50 each. Offer was mailed on 1st April with a validity of 15 days. Since there was no specific date of validity, ... Read More
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