Question: With reference to the scenario below, critically discuss the importance of instant and electronic communications in contract law and how this may affect the “postal rule”, if at all.
You must answer the following question:
Andre is a self-employed kitchen designer who deals mainly in high specification kitchens aimed at the booming home catering market. He has worked for a number of competitors from the Northern Irish Bake-In Show and the Masterclass Chef television programme and recently his firm fitted a kitchen for the international winner of “Who would eat with me”. He has a fairly large business employing several staff. He has recently acquired a consignment of hand-cut maple wood and knows of several potential purchasers who would compete with one another to buy a handmade kitchen using this wood.
On 2nd May he wrote to Jamie in the following terms: "I have just taken delivery of hand-cut maple wood sufficient for one bespoke kitchen and can offer it to my clients for the sum of £31,500. If you are interested please reply by return of post." He sent the same letter to Gino and Mary.
At 2.15 p.m. on 3rd May, by first class post, Jamie replied, "In cash I could only give you £20,500 for the kitchen, but if you will accept this, I will have my next television show filmed in the kitchen and mention your name. For this, I would do a top notch product placement mention for you."
Just as he was leaving his office that evening, Jamie received a very good offer to film his next show in a local school kitchen. In consequence, he stayed on late and at 7.20 p.m. he sent a FAX to Andre which read, "Disregard letter, I will definitely accept your offer of £31,500 for the kitchen."
This FAX message from Jamie was received on the machine in Andre’s general office but while it had been left on, it was not filled with paper and therefore no faxes were printed out.
Mary has decided that she is now too old to change her kitchen and does not respond to the letter. However Gino is thinking of updating his home and emails Andre on 3rd May at 9.00 am saying “I accept, will call with you tomorrow to sign the formalities”. Unfortunately Andre has lost his internet connection due to a fault with his computer system and does not read this email until after Gino arrives to sign the contract as the business opens on the 4th May. But when Andre is faced with Gino and after reading the email he agrees to sell him the kitchen.
It is when Andre goes to get the standard form contract for Gino to sign that he notices the fax machine is out of paper, he loads the paper tray, waits until the faxes are printed out and then at that point reads the fax from Jamie.
Requirement
With reference to the above scenario, critically discuss the importance of instant and electronic communications in contract law and how this may affect the “postal rule”, if at all.
Answer: There are generally four elements required to form a contract; offer and acceptance, certainty, an intention to create legal relations and consideration. In this scenario, the important issue, in terms of the formation of a contract, is offer and more predominantly acceptance. Andre decides to make an offer to Jamie, Gino and Mary to buy a handmade kitchen using the maple wood he has acquired. Andre requests that if any of the three would be willing to accept his offer, could they do so by return of post. Since Andre has requested that his offer must be accepted in a particular way, then “only acceptance by that method or an equally effective one will be binding” (Pearson). This verdict is supported by the case of Tinn v Hoffman (1873). In this given scenario, Jamie complies with And......(short extract)
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Details: - Mark: 73% | Course: Contract Law | Year: 1st | Words: 1652 | References: Yes | Date written: March, 2014 | Date submitted: November 25, 2015 | Coursework ID: 938
