Saturday, February 13, 2010

Harvey vs Pacey

Lecturer gave an example about legally binding contract in tutorial class. Lets just post it here. Here’s the situation.

Pacey is a seller, Harvey is a prospective buyer. Harvey sent a telegram to pacey about certain items he’s selling. How much you sell for the pens? B replied $XXX… the dispute arose when mr. pacey didn’t want to sell it. Is it a legally binding contract?

Answer:
No legally binding contract. because Harvey is only asking question. there’s no valid agreement of offer and acceptance. pacey is just answering harvey’s question. Mr. Harvey is making offer but there’s no acceptance.

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