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Contract Law: The Hyde V Wrench Case

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INTRODUCTION

A contract is a “legally binding agreement” where two or more sane adults enter into an agreement where the law enforces and recognizes the said contract whether it is implied or expressed as per Keenan & Riches (2007, p. 214). Contracts can be divided into two groups namely; specialty contracts where it is of formal contracts, and simple contracts where contracts are informal. From the case study given, the case can be placed under the latter as the flow of case is simpler and more informal.

REPORT OBJECTIVE

First and foremost, we have to look at the advertisement from TechMech Ltd in depth and to decide whether it is an offer or an invitation to treat. According to Keenan & Riches (2007, p. 215), an offer is when a proposal is made by the offeror to the offeree “with a promise to be bound” following the acceptance of certain terms and conditions, whereas an invitation to treat is when an advertisement that is merely an invitation, ready to receive offers which the advertiser may or may not accept. Such example of a case relating to an invitation to treat is the …show more content…

Such scenario can be seen in the Hyde v Wrench (1840) case where the defendant offered to sell it for GBP 1,000, and the plaintiff then made another offer to the defendant to buy it for GBP 950, the defendant then rejected the counter offer and therefore no contract has been formulated (Keenan & Riches, 2007, p. 219). When a counter offer is made, Philip’s placement of order is not considered to be an acceptance as TechMech Ltd is still required to choose to accept or reject Philip’s counter offer. Hence again, no contract has been made.
Philip phoning TechMech Ltd to cancel his order is deemed irrelevant to this case as from what I have mentioned earlier, no contract has been made for his placement of his order in the first place as there were no acceptance received from TechMech Ltd’s

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