Business law
agreement made between John and seller is regarded as a condition precedent. It means that the agreement will not come into enforceable unless and until the condition is realized. Therefore, there is no binding contract between John and seller until both accepted the conditional of contract. In addition, a valid contract will be made between John and seller if the offer accepted by the seller while the stock is available.
Here, the software seller only accepted the cash price for “cash on delivery” due to John is a new customer. It caused to a termination of offer which means that an offer is terminated while the offer for certain reasons ceases to be effective before it is accepted. Due to the seller did not accept the offer from John for “the payment to be made in 2 weeks after delivery and on successful installation into his office computer server”, and seller made a counter offer to John as it was only willing to payment by cash on delivery and the half price is only applies to single user. He should pay the full price for 5 multiple users. Once the seller rejected the offer made by John, the offer lapsed. And the counter-offer is a new offer made by seller. It just likes the authorized case Hyde V Wrench [1840] 49 ALLER 132. It states that when the defendant rejected this (the offer), there was no longer any offers in existence. When the plaintiff told the defendant he would buy at 1000 pounds, he was not accepting any existing offer, he was making a new offer to the plaintiff who was free to accept or reject it. So the positions changed. Seller became the offeror and John became the offeree in this new situation and the offer is stay open with April. If John accepts those terms and conditions from seller, an agreement is reached.
By contract law, the process of acceptance need to bring an agreement into and fixes the terms of the contract. The offeree must agree to all the terms of the offer. Due to the seller no longer had the stock on hand so there is no need to consider whether John was accepted all terms of the contract at this stage. So, the offer is revoked. So far, there was no binding agreement between two parties.
Question 2
b)