Asked by Tiffany LaFrance on Jul 14, 2024
Verified
On July 23rd, Carson, who lived in Bytown, wrote a letter to Henri, offering to sell his (Carson's) vintage car for $18,000. The letter was delivered to Henri in his home in Mount Royal, an hour's drive away, on July 27.
On July 24th, Carson met his friend Jack on the street. Jack expressed an interest in buying Carson's vintage car. He offered Carson $18,000 for the car, but Carson said only that he would "give the offer some thought," and promised to advise Jack of his decision. Carson did not tell Jack of his offer to sell the car to Henri. On July 25th, while on vacation in York, Jack sent a fax to Carson, offering to buy the car for $18,250 if Carson would deliver the car, on July 30th, to his farm, located some 20 km west of Bytown. Carson received the fax the same day and, that evening, wrote and mailed a letter to Henri, revoking his offer to sell the vintage car.
On July 28th, Henri wrote a letter to Carson accepting his offer to sell the vintage car and enclosed a cheque for $18,000 as payment in full. On July 29th, Henri received Carson's letter revoking the offer. Carson had business west of Bytown on July 29th, and since his trip would take him past Jack's farm, he decided to deliver the vintage car on his way. Carson left the car on a trailer at Jack's farm, but finding no one at home, left the keys to the car and a note in Jack's mailbox. The note stated that he had left the car behind the garage. On July 30th, Carson received the letter of acceptance Henri had mailed to him on July 28th. Carson immediately telephoned Henri to tell him he had sold the car to Jack, but Henri was out of town on a business trip. Carson left a message with Henri's wife and, on July 31st, returned by mail the cheque that Henri had sent him with the letter of acceptance
Later on July 31st, Carson received a telephone call from Jack who had just returned from Toronto requesting delivery of the car. When Carson explained that the car had been delivered on July 29th, Jack stated that the car was not behind the garage. Carson then requested Jack to call the police to investigate the theft. Later in August, the police located the car in the possession of a minor and an arrest was made. Unfortunately the car had been badly damaged while in the thief's possession. The estimate of damages was $12,000.
Discuss the issues raised in this case. Describe the rights of the parties (if any) and the possible outcome of any litigation if legal action should be taken to enforce the rights of the parties.
Vintage Car
An old, classic automobile typically defined by its age, style, and rarity, often considered collectible due to its historic value.
Revoking
The act of officially canceling or withdrawing an offer, policy, or legal right.
Acceptance
An act of agreeing to an offer, thereby creating a binding contract between the parties involved.
- Pinpoint and clarify the essentials and conditions required for the legal validity of a contract.
- Explore the nature of disagreements in contracts and the basic principles applied to settle them.
- Understand the importance of the acceptance period and modes of communication within contract law.
Verified Answer
NA
Nohemi AndradeJul 14, 2024
Final Answer :
Students should work through this case to identify the offer and determine its disposition. The offer of July 23rd by Carson to Henri, was an offer by mail that was communicated to Henri on July 27th. This offer was accepted by Henri on July 28th by mailing a letter of acceptance to Carson with cheque enclosed. The letter sent by Carson to Henri revoking the offer of July 23rd arrived too late to be effective. Returning the cheque has no effect on the agreement itself, because the contract was already formed, and both parties bound.
The offer by Jack to Carson on July 24th to buy the car for $18,250 was not accepted on that date but the parties kept the offer open for acceptance.
Jack's offer of July 25th was of a unilateral nature, whereby Carson could accept by delivering the car to Jack's farm on July 31st. The delivery on July 29th was not acceptance in accordance with the terms of the offer. Jack would argue that Carson did not comply with the terms of the offer and therefore acceptance was not properly made, and it was therefore not bound by the offer to buy the vehicle. Carson is clearly caught in the middle between Jack and Henri but since the car is now damaged, Henri may also wish to avoid the agreement and accept the return of the cheque as an offer by Carson to terminate the agreement. This would leave Carson with the damaged car.
Citation: Dickinson v. Dodds (1876), 2 Ch.D. 463.
The offer by Jack to Carson on July 24th to buy the car for $18,250 was not accepted on that date but the parties kept the offer open for acceptance.
Jack's offer of July 25th was of a unilateral nature, whereby Carson could accept by delivering the car to Jack's farm on July 31st. The delivery on July 29th was not acceptance in accordance with the terms of the offer. Jack would argue that Carson did not comply with the terms of the offer and therefore acceptance was not properly made, and it was therefore not bound by the offer to buy the vehicle. Carson is clearly caught in the middle between Jack and Henri but since the car is now damaged, Henri may also wish to avoid the agreement and accept the return of the cheque as an offer by Carson to terminate the agreement. This would leave Carson with the damaged car.
Citation: Dickinson v. Dodds (1876), 2 Ch.D. 463.
Learning Objectives
- Pinpoint and clarify the essentials and conditions required for the legal validity of a contract.
- Explore the nature of disagreements in contracts and the basic principles applied to settle them.
- Understand the importance of the acceptance period and modes of communication within contract law.