1 ) The first thing to see is whether there is a valid contract between Ada and Ben on buying Bens’ BNW auto. A valid contract consists of offer. credence and consideration. “An offer is a definite promise or proposal made by the offerer with the serious purpose of being bound by such promise or proposal. if it is accepted by the offeree. ” In this instance. Ada’s missive on bespeaking Ben to sell his BNW auto for $ 80. 000 should compose an offer. It is because the footings are in a definite signifier capable of being accepted in indistinguishable footings. “An understanding comes into being after the offeree unconditionally accepts the offer” . On the 2nd twenty-four hours. Ben accepted Ada’s offer and an understanding has been made as Ben replied Ada “Sure” by voice mail. As Ada did non clearly indicate the method of credence. the instantaneous voice mail message left by Ben is counted as a valid method. However. as the postal regulation does non use to state of affairss where the credence of an offer is communicated by any instantaneous methods. the contract is complete merely when the credence is received by the offerer in such methods.

In Entores Ltd V stat mis Far East Corp. a contract was made between the parties merely when the offeree’s credence was received by the offerer. Therefore. as Ben used voice mail. which is besides a sort of instantaneous agencies. as an credence method. a valid contract will merely be made when Ada received and listened to Ben’s voice mail. So no contract was made in this phase yet. However. Ben so changed his head and sent a missive of annulment to Ada. The important portion so appeared. Although Ben sent a voicemail message to accept Ada’s offer foremost. and posted a annulment missive to Ada afterwards. the missive reached Ada earlier than the voice mail. Harmonizing to the general regulation. the annulment of an offer becomes adhering when it comes to the cognition of the offeree and an offer can be revoked at any clip before its credence. And at the minute Ada received Ben’s annulment missive. she still have non received Ben’s voicemail credence. As I analyzed earlier. for instantaneous methods. the contract is merely complete when the credence received it. non based on the minute of directing. Ben’s annulment has already become effectual when it reached Ada and the contract was non completed. Hence. no valid contract was made between them.


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