Contract law examination Essay Example | Topics and Well Written Essays - 1500 words - 1

Contract law examination - Essay mannequinHowever, if the offeree asks for further details about the offer, the offer is not rejected and is still stiff as seen in Stevenson v McLean. If the offeror makes the offer again, then the offeree can accept it. An offer also ceases to be effective when the offeree makes a counter offer to the authentic offeror. In Hyde v Wrench, it was held that a counter offer rejects the original offer. The offeror is not destined to accept a counter offer. However, if he accepts the counter offer, a fresh agreement is formed without any regard to the original offer.iii. Failure to fulfill a condition power to acceptance also terminates an offer. If the offeror has specified a definite mode of converse of acceptance which is not followed by the offeree, the offer ceases to be effective. In Manchester Diocesan Council of Education v. Commercial and General Investments Ltd, the courts ruled that an offer ceases to effective if the specified mode of c ommunication of acceptance is not followed.An offeror has a right to countermand his offer at any time before its acceptance. For an offer and acceptance to be valid, effective communication is of paramount importance. An acceptance is not effective if it is not communicated to the offeror. In the given case, Ali sent a letter of acceptance of Yasmins offer to her but addressed it wrongly. Until the letter reaches Yasmin, Alis acceptance would not be effective as the acceptance would not have been communicated to Yasmin. Therefore, as long as the letter is in transit, Yasmin has a right to revoke her offer. The communication of revocation of offer is also very important. In this case, Yasmin notified Alis friend that she had revoked her offer. Assuming that Alis friend is a reliable third party, by the application of Dickinson v Dodds, Yasmins notice of revocation would be deemed to be sufficient and effective. After her revocation, she would not be bound to perform her promise whe n the letter