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    Abdullahi Abdikadir
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    Tom offered to sell his car to Jerry for 500,000. Jerry counter-offered at 450,000, rejecting Tom's original offer. There is no contract as Jerry's counter-offer terminated Tom's original offer. When Jerry then agreed to pay 500,000, there was no existing offer to accept since Tom did not revive his original offer after the counter-offer. Under principles of contract law established in Hyde v. Wrench, no binding agreement was formed.

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    Tom offered to sell his car to Jerry for 500,000. Jerry counter-offered at 450,000, rejecting Tom's original offer. There is no contract as Jerry's counter-offer terminated Tom's original offer. When Jerry then agreed to pay 500,000, there was no existing offer to accept since Tom did not revive his original offer after the counter-offer. Under principles of contract law established in Hyde v. Wrench, no binding agreement was formed.

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    © All Rights Reserved
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    5 views1 page

    31045

    Uploaded by

    Abdullahi Abdikadir
    Tom offered to sell his car to Jerry for 500,000. Jerry counter-offered at 450,000, rejecting Tom's original offer. There is no contract as Jerry's counter-offer terminated Tom's original offer. When Jerry then agreed to pay 500,000, there was no existing offer to accept since Tom did not revive his original offer after the counter-offer. Under principles of contract law established in Hyde v. Wrench, no binding agreement was formed.

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    © All Rights Reserved
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    Question

    • Explain whether there is a binding agreement where Tom wrote to Jerry offering to sell his car to him at 500,000. Jerry accepted Tom's offer subject to the price being reduced to Sh. 450,000. It has
    become apparent that Tom is not willing to sell the car for Sh. 450,000.
    Jerry now writes to Tom agreeing to buy the car for Kshs. 500,000.
    Answer

    • This problem is based on counter offers in the law of contract.


    In this case, it is evident that Jerry did not accept Toms offer and as such there is no contract
    between them. Jerry?s counter offer of Kshs. 450,000 terminated Toms offer of Kshs. 500,000.

    Jerry's willingness to pay Kshs. 500,000 for the car is not an acceptance as there was no offer
    existing at the time as there is no evidence that Tom had revived the offer.

    This position is consistent with the decision in Hyde V. Wrench whose facts were
    substantially similar.

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