Contractual Offer And Acceptance

Summary

A unilateral offer involves a clear promise accepted by performing a specified act. Advertisements are usually invitations to treat, not offers. Kokos payment reserved the sofa, but the failure to provide the two-seater may breach the contract if it was essential. The Kshs. 20,000 is valid consideration. Non-disclosure agreements can be enforceable with continued employment as consideration. Real estate commissions require a license; promissory estoppel may apply if a promise was relied upon. The doctrine of equitable estoppel can mitigate common law harshness, as seen in High Trees. A counter-offer invalidates the original offer, but subsequent acceptance can form a new contract.

Full Conversation

Odds and fashions Ltd is a retailer of household furniture in Kenya. On 1st November, *, it announced a campaign dubbed “accessorize your deal” by placing an advert in the Nation and Standard Newspaper. “The advertisement read as follows” Odds Mega sale Special offer. Don’t miss Anyone purchasing an Italian leather three seater-offer by cash or credit card at the reduced price of Ksh. *,*/= will receive an Italian leather two-seater sofa price at Kshs. *,*/= in the sale absolutely free of charge. The advertisement concluded, ‘visit our showroom at our various branches. On 5th December, * Koko took a copy of the advert with her and called Odds and Fashion to inspect the Italian Sofas. She spoke to Bondo, the sales manager and told him that she had decided to purchase the sofas subject to first checking with her fiancé. Bondo told Koko that the company only had a limited number of two seaters; therefore, it was agreed that she should deposit Kshs. *,*/= in return Bondo agree to hold the Sofa for * hours. It was further agreed that the Kshs. *,* would be deducted from the purchase price if Koko went ahead and bought the furniture within the * hours. On the 7th of December, *, Koko called the store to purchase the sofas and spoke to Bondo who was very apologetic but explained that his staff had forgotten to reserve the sofas for her. He explained that in any event, the two seaters were “subject to availability” (as stated in the various notices around the store) and the Company has now run out of them. Bondo also said that ‘obviously the two seaters were free gifts and were to availability. He pointed out of that the Italian three-seater sofa was still available but the price had now gone up to Kshs. *,*. By reference to the above and relevant case law: (i) Explain the elements of a unilaterial offer and how such an offer maybe accepted. (ii) Explain whether the advert amounts to offer or an invitation to treat in respect of: (a) The three-seater sofas: and (b) The two-seater sofas (iii) Explain with reasons what Koko purchased by paying Kshs. *,*/= on the 5th December, *. (iv) Explain whether those purchased a three-seater sofa were contractually entitled to receive a two-seater as well or whether Bondo was correct in stating that ‘obviously’ the two seater were a free gift. (v) Explain with reasons whether odds and fashion had acted in breach of contract despite notices which states that the two seater were subject to availability.
Hello Moreen,
Let's break down your queries step-by-step:
(i) **Unilateral Offer Elements:**
- **Offer:** Clear and specific promise by the offeror.
- **Acceptance:** Performance of the act requested by the offeror.
- **Example:** A reward for returning a lost pet.
(ii) **Advert as Offer or Invitation to Treat:**
- **Three-Seater Sofas:** Generally an invitation to treat, inviting customers to make an offer.
- **Two-Seater Sofas:** Could be seen as an offer, promising a free gift upon purchase of the three-seater.
(iii) **Koko's Kshs. *,* Payment:**
- Koko paid for an option to hold the three-seater for * hours, essentially reserving her right to purchase it within that timeframe.
(iv) **Entitlement to Two-Seater:**
- If the advert is deemed an offer, Koko should receive the two-seater upon purchasing the three-seater. Bondo's statement may be incorrect if it contradicts the advert's terms.
(v) **Breach of Contract:**
- If the two-seater was crucial to the contract, failure to provide it may constitute a breach, despite availability notices.
For further
more
Let's continue with a deeper analysis:
(iv) **Entitlement to Two-Seater:**
- If the advertisement is considered a binding offer, then Koko is contractually entitled to the two-seater upon purchasing the three-seater. The statement about the two-seater being a free gift contradicts the clear terms of the advertisement, which forms part of the contract.
(v) **Breach of Contract:**
- Odds and Fashion may have breached the contract if the two-seater was an essential part of the deal. Despite the notices, the terms of the advertisement could override them, especially if Koko relied on the advert to make her decision.
Would you like more detailed case law references or further clarification on any point?
yes please
Hello Moreen,
Detailed Analysis and Case Law References:
(i) Unilateral Offer Elements:
- **Offer:** A clear and specific promise by the offeror.
- **Acceptance:** Performance of the act requested by the offeror.
- **Example:** Carlill v Carbolic Smoke Ball Co (*) - An advertisement was considered a unilateral offer.
(ii) Advert as Offer or Invitation to Treat:
- **Three-Seater Sofas:** Typically seen as an invitation to treat (Partridge v Crittenden [*]).
- **Two-Seater Sofas:** Could be considered an offer if the advert is clear and specific (Carlill v Carbolic Smoke Ball Co).
(iii) Koko's Kshs. *,* Payment:
- Koko paid for an option, reserving the right to purchase within * hours.