Business Law 問題 請解答 Thank a lot

Definition of Offer and Acceptance:
Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. An offer is an indication by one person (offeror) to another (offeree) of the offeror's willingness to contract on certain terms without further negotiations. A contract is then formed if there is express or implied agreement. A contract is said to come into existence when acceptance of an offer has been communicated to the offeror by the offeree.
Source: http://en.wikipedia.org/wiki/Offer_and_acceptance

There are generally four ingredients for a valid contract:
1.an offer by one of the parties,
2.an acceptance of that offer by the other party,
3.each party must give consideration, and
4.the parties must have had an intention to enter into a legal relationship.


Case: Livingstone v. Evans [1925] 3 W.W.r. 453, [1925]4 D.L.R. 769 (Alta S.C.)
1.An offer that has been rejected is thereby ended and it cannot be afterwards accepted without the consent of the one who made it.
2.A counter-offer is a rejection of the original offer, a mere inquiry is not.
3.If an offeror replies to the rejection, the reply (“cannot reduce price”) may amount to a renewal of the offer. The answer is dependent upon considering all surrounding circumstances.

Conclusion
(1)A is not bound to sell the car to B at $5,000, unless A accept the counter-offer from B
(2)The counter-offer from B is a rejection of the original offer and it is a mere inquiry only.
(3) The bounding contract must be communicated to both parties (offeror & offeree) and accepted by the offeree (A).


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