Business Law - Case study Example | Topics and Well Written Essays - 2000 words

Business Law - - Case Study Example An "offer" in the context of contract law has been described as "an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the "offeree.3" The "expression4" may take different forms and Hard Water's original quotation will satisfy this requirement. The intention element is an objective consideration and the case of Smith v Hughes 5emphasised the relevant consideration as being a focus on how a reasonable person would view the situation. Furthermore, the law distinguishes between an offer and an invitation to treat, which is not an offer but an indication of willingness to negotiate a contract6. For example, in the case of Gibson v Manchester City Council7, the words "may be prepared to sell" constituted an invitation to treat and not a distinct offer. Furthermore, valid acceptance in law follows a valid offer and the formation of a contract follows immediately. Moreover, a valid acceptance is a final and unqualified acceptance of an offer as demonstrated in the case of Peter Lind Limited v Mersey Docks & Harbour Boar,8 highlighting the "mirror image" rule, where acceptance must be unequivocal and unconditional, therefore acceptance must "mirror" the offer. With regard to the current scenario, the issue in c... With regard to the current scenario, the issue in contention is whose terms are applicable to the contract. Contractual negotiations particularly in the context of quotations and bids for, will often involve several exchanges between the commercial parties involving offers and counter offers9. The case of Hyde v Wrench10 established that a counter offer brings an end to the original offer. However, the "battle of the form" creates real problems in practice11. The difficulty with this as evidenced with the current situation is determining the exact terms of the eventual contract. Indeed "Chitty on Contracts" underlines this problem and concludes: "Thus it is possible by careful draftsmanship to avoid losing the battle of the forms, but not''.. to win it. The most that the draftsman can be certain of achieving is the stalemate situation where there is no contract at all12." Despite the possibility of conflict in the current situation as to the exact terms of the contract, there is clearly a contract between Doors Software and Hard Water by virtue of course of conduct13. However, to clarify the issue of whose terms are applicable, the courts have adopted the "last shot principle", which was established in the case of Butler Machine Tool Co -v- Ex Cell-O-Corp14 . According to this principle, the presumption is that the last offer which has been accepted without qualification will be determined as covering the conditions of the contract. In the current scenario, Hard Water returned and acknowledgment slip incorporating the terms and conditions of Doors Software Limited and on a strict interpretation of the "last shot" principle, this would suggest that the contract was concluded on Doors Software's terms