How Is an Offer Terminated Essay Example
How Is an Offer Terminated Essay Example

How Is an Offer Terminated Essay Example

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  • Pages: 2 (493 words)
  • Published: March 28, 2017
  • Type: Analysis
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An offer is a critical component of a contract, a legal agreement established between two or more entities. Other crucial factors include Acceptance, Consideration, Position, and Capability. If any of these components are missing, the contract will be deemed invalid.

A proposal, otherwise known as an offer, is a precise promise or proposition that commits on specified conditions and must not be ambiguous. The offer might be made verbally, in a written format or through actions. It can be given to a specific individual, a group of people, or to the public as a whole. The individual presenting the offer is recognized as the offeror whilst the one receiving it is the offeree.

A proposal ceased due to Expiration of time, Withdrawal, Contingent proposal, Refusal of proposal, Demise or Approval.

An offer that's declared to

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have a certain duration will expire at the conclusion of that period. Essentially, an offer terminates once the timeframe that the offeror intended for it to remain active has passed. If there is no defined timespan, the expiry of the offer takes place after a considerable period, which is dictated by the nature of the offer, the method of communication, and other factors. The ruling in Ramsgate v Montefiore in 1866 affirmed that an offer to purchase shares had elapsed after an attempt to accept it three months later.

The proposer can rescind or repeal the proposal anytime before its acceptance by the receiver. Nevertheless, the repeal is not effective until the receiver is informed; that is, it comes into effect once the receiver is notified. The originator does not need to conduct this communication as long as the receiver finds out from

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a trusted source. If the proposer can't fulfill the promise's obligations and communicates this to the receiver, the proposal is considered rescinded. In light of Dickinson v Dodds (1876), 'A' offered his property to 'B' for sale but later sold it to 'C', 'B' learned about the sale from 'D'. The case suggests that the offer was indeed rescinded.

A proposal may have certain stipulations attached to it, which might specify its expiry upon the occurrence of a specific event. Such proposal is termed as a conditional offer that could explicitly or implicitly state its condition. The case of Financings Ltd v Stimson (1962) serves as an example. Here, Stimson (S) approached for a financial aid to purchase a vehicle, which was considered as an offer from his end. However, due to dissatisfaction with the car, S gave it back prior to the finance company's approval. Subsequently, the car was stolen and heavily damaged. Unaware of these incidents, the finance firm accepted S's offer post the mishap. The court ruled in favor of an unspoken agreement underlying the offer that required the car to be in its original condition. The consequence of car damage led to the termination of the offer. As a result, the approval by the finance company was rendered invalid.

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