Law Assignment

No Table of content Page
1 introduction 2
2 Facts of the case 2

3 Issues(s) of the case 3
4 Holding of the case 3

5 Rationale of the case 4
6 conclusion 5
INTRODUCTION
In order for one to decide whether a contract is formed between two parties, there are certain
requirements to be fulfilled. However just because the parties have made an agreement, this does not
necessarily mean that it is legally enforceable .In particular courts will look for an offer by one party that
has been unequivocally accepted by the other party. The case that I choose is Stevenson v Mclean [1880]
5 QBD 346
FACTS OF THE CASE
The facts of the case that The defendant, Mclean, offered to sell iron to the complainant , Stevenson . This
was for the price of 40s and the offer would remain open until Monday. The complainant sent a telegram
to the defendant, asking whether he would accept a payment of 40 over a two-month period, or what his
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longest limit would be for payment. McLean did not respond to this telegram. The defendant sold the iron
to another party, but did not inform the complainant of this action. On Monday morning, the complaint
sent a telegram to accept the offer, unware it had been sold
ISSUE OF THE CASE
The complainant sued the defendant for non-delivery of the iron and that this was a breach of contract.
The issue in the case was whether there was binding contract between the parties and if the telegram sent
by the complainant was an inquiry for information or a counter offer.
HOLDING OF THE CASE
The holding of the case Stevenson v Mclean [1880] 5 QBD 346 was The court heard the complainant was
only inquiring for more information about whether the terms of the offer could be changed; there was no
specific wording to indicate that it was a counter offer or rejection. This was in contrast to Hyde v
Wrench. This meant that the offer made by the defendant was still valid and the second telegram by the
complaint formed a binding contract. While the promise of the offer remaining open until Monday was
not itself binding and an offeror can revoke this at any time, there had been no revocation communicated
to the complainant in this case.
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RATIONALE OF THE CASE
The rationale of the case Stevenson v Mclean [1880] 5 QBD 346 was Lush J held the plaintiff's telegram
at 9.42am was not a rejection of the offer but a mere inquiry about whether the terms could be modified.
Although McLean was at liberty to revoke the offer before Monday finished, that was not effective until it
reached the plaintiffs. Lush J charged the defendant the amount of £1900 to be paid to the plaintiffs
subject to any reduction by subsequent ruling.
As to the first issue, having regard to the nature of the wording of P's telegraphic inquiry and the volatility
of the iron market, the communication cannot be regarded as a counter-offer but a mere inquiry to which
the defendant should have responded. The circumstances can be distinguished from Hyde v Wrench 3
Beav. 334 where there was a clear counter-offer [per Lush, J at 358].
As to the second and third issues the argument advanced by D misrepresents the proposition for which
Cooke v Oxley stands. The correct principle is that a unilateral promise to hold open an offer is not
binding upon the person who made it and can be revoked prior to its acceptance. However, a revocation
has no effect until it is actually communicated to the person to whom the original offer was made [per
Lush J at 352 relying upon the American decisions in Tayloe v Merchant's Fire Insurance Co How. Sup.
Court Rep. 390 and Byrne & Co v Leon Van Tien hoven & Co 49 L.L. (C.P.) [316]. As P had not
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received D's telegram of warrants sold which would have the effect of revoking the original offer, the
original offer stood and P's subsequent acceptance of it resulted in a contract.
CONCLUSION
In conclusion, to constitute a binding agreement, a communicated offer must be accepted. Another r

words, all the terms which had been stated in the offer must be accepted by the offeree. Acceptance must
be final and absolutely unconditional. A binding agreement will be formed when the offeree accepts and
agrees with the offer without attaching, deleting or modifying conditions to the offer. Once the agreement
is formed, the parties cannot bargain with the terms and they must bind each other to fulfill the promises
on the agreement. A final consent to the terms of the offer indicates that any intention to introduce a
substitution term to the original offer will lead the acceptance become not valid. Any intention to destroy
the original offer will result in voiding the agreement
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No Table of content Page

2 Facts of the case 2

4 Holding of the case 3

FACTS OF THE CASE

ISSUE OF THE CASE

HOLDING OF THE CASE

In conclusion, to constitute a binding agreement, a communicated offer must be accepted. Another r

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