Contract Offer And Acceptance

Summary

Bobs initial response to Alices offer was a counteroffer, not a valid acceptance, as it added conditions. This counteroffer terminated Alices original offer. When Bob later attempted to accept the original offer, it was no longer valid, as it had been extinguished by the counteroffer. Therefore, no binding contract was formed between Alice and Bob. Understanding the mirror image rule and the impact of counteroffers is crucial in contract law.

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Alice emails Bob offering to sell her car for $*,*. Bob replies, “I accept, but only if you fix the brakes first.” A week later, Bob says, “Okay, I’ll buy it as-is.” Alice refuses. Legal Issue: Whether Bob's reply was a valid acceptance or a counteroffer.
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Bob's initial reply is a counteroffer since it imposes additional conditions. Alice is not obligated to accept the counteroffer. When Bob later attempts to accept the original offer, Alice is within her rights to refuse, as the original offer was effectively rejected by the counteroffer.
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Issue:
Whether Bob’s initial response constitutes a valid acceptance or a counter-offer, and whether Alice’s original offer remained open for acceptance afterward.
Rule:
Under contract law, for a valid and legally binding contract to be formed, there must be an offer, acceptance, consideration, intention to create legal relations, and capacity. Acceptance must mirror the terms of the offer exactly — this is known as the mirror image rule. If a party attempts to accept an offer but adds new terms, this is considered a counter-offer, not an acceptance. A counter-offer legally terminates the original offer, which cannot later be accepted unless renewed. In *Hyde v Wrench* (*), the court held that a counter-offer rejects and thus extinguishes the original offer. Wrench offered to sell land for £*,*. Hyde responded with a counter-offer of £*. When Hyde later attempted to accept the original offer, it was no longer valid, as it had been rejected by the counter-offer. Similarly, in *Jones v Daniel* (*), a response containing new terms constituted a counter-offer, and the original offer was no longer open for acceptance. Additionally, in *Stevenson, Jacques & Co v McLean* (*), the court distinguished between a counter-offer and a mere inquiry. A request for clarification or additional information does not reject the original offer, but adding conditions does.
Application:
In the scenario, Alice made a clear offer to sell her car to Bob for $*,*. Bob responded with, “I accept, but only if you fix the brakes first.” By adding a condition to the acceptance, Bob effectively made a counter-offer, not a valid acceptance. This altered the terms of the original offer and therefore, under the rule in *Hyde v Wrench*, extinguished Alice’s initial offer. A week later, when Bob attempted to accept the original offer by saying, “Okay, I’ll buy it as-is,” Alice was no longer legally bound to sell the car. Since Bob’s earlier counter-offer terminated the original offer, it could not be accepted unless Alice renewed it, which she did not.
Conclusion:
Bob’s response was a counter-offer, not an acceptance, because it sought to alter the terms of the original offer. As a result, Alice’s original offer was terminated. When Bob later attempted to accept the original terms, the offer was no longer valid. Therefore, no binding contract was formed between Alice and Bob.
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Would you need more details on contract law specific to Tashkent, or any other legal assistance?
Give feedback and provide polished version
Case Rating: *
Here's your polished IRAC analysis:
---
Issue:
Whether Bob’s initial response constitutes a valid acceptance or a counter-offer, and whether Alice’s original offer remained open for acceptance afterward.
Rule:
Under contract law, for a valid and legally binding contract to be formed, there must be an offer, acceptance, consideration, intention to create legal relations, and capacity. Acceptance must mirror the terms of the offer exactly — this is known as the mirror image rule. If a party attempts to accept an offer but adds new terms, this is considered a counter-offer, not an acceptance. A counter-offer legally terminates the original offer, which cannot later be accepted unless renewed. In *Hyde v Wrench* (*), the court held that a counter-offer rejects and thus extinguishes the original offer. Wrench offered to sell land for £*,*. Hyde responded with a counter-offer of £*. When Hyde later attempted to accept the original offer, it was no longer valid, as it had been rejected by the counter-offer. Similarly, in *Jones v Daniel* (*), a response containing new terms constituted a counter-offer, and the original offer was no longer open for acceptance. Additionally, in *Stevenson, Jacques & Co v McLean* (*), the court distinguished between a counter-offer and a mere inquiry. A request for clarification or additional information does not reject the original offer, but adding conditions does.
Application:
In the scenario, Alice made a clear offer to sell her car to Bob for $*,*. Bob responded with, “I accept, but only if you fix the brakes first.” By adding a condition to the acceptance, Bob effectively made a counter-offer, not a valid acceptance. This altered the terms of the original offer and therefore, under the rule in *Hyde v Wrench*, extinguished Alice’s initial offer. A week later, when Bob attempted to accept the original offer by saying, “Okay, I’ll buy it as-is,” Alice was no longer legally bound to sell the car. Since Bob’s earlier counter-offer terminated the original offer, it could not be accepted unless Alice renewed it, which she did not.
Conclusion:
Bob’s response was a counter-offer, not an acceptance, because it sought to alter the terms of the original offer. As a result, Alice’s original offer was terminated. When Bob later attempted to accept the original terms, the offer was no longer valid. Therefore, no binding contract was formed between Alice and Bob.
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Would you need more details on contract law specific to Tashkent, or any other legal assistance?