Business Law Essay Example | Topics and Well Written Essays - 1500 words - 3

Business Law - Essay Example 2 In order to have a valid contract, an offer must sufficiently be accepted. In this case when Simon ordered the 20 coffee machines, there was already a valid offer to purchase the said product from the wholesaler. In order that the contract may be perfected, what is needed is the valid acceptance of the wholesaler. But since the wholesaler made no reply since the offer to purchase on Thursday, Simon had every right to change his mind. When Simon sent a telefax canceling his order on Tuesday thereafter, there was still no perfected contract. The general rule is, once the acceptance is made, the offerror can no longer revoke the offer. But the acceptance becomes binding on the offerree only when it reaches the offeror. In this case the telefax was sent on Tuesday, while the letter of acceptance, confirming the order was received the next day. In order for the contract to be valid, acceptance of the offer is needed to create legal rights and duties arising from such agreement. In this case Simon has revoked his offer prior having knowledge of the acceptance the next day. In the case of Entores Ltd. v Miles Far East Corporation (1955)3, where the parties where dealing on an agreement based on telex communication between parties, it was held that it was not until the message of acceptance was received by the offeror until the contract is deemed perfected or complete. Lord Denning, Master of the Rolls, provided that if a notice of withdrawal was sent during business hours, the withdrawal was effective as of the time it was received by the telex machine, regardless if the other party received it or not based on their own neglect.4 In our case it is obvious that after a number of days without confirmation of the request, Simon sent a telefax canceling his order on Tuesday, a day before there was a valid acceptance from the wholesaler. Hence, he had all the right to revoke his primary offer to purchase the coffee makers since there was no acceptance yet made, there was no contract yet perfected or created at that time. The telefax remains open to receive messages, there was also no confirmation made by the wholesaler that the request to purchase their product was even accepted, in addition to that there was no consideration or payment made. Simon had timely withdrawn his offer before any contract was created, hence he will not be liable for any demand based on breach of a contract that was never effective. The use of disclaimers in shops or place of business is generally allowed by law, but the rule is not absolute, as it does not include responsibility for negligence as provided in the Unfair Contract Terms Act 1977. Simon cannot rely on his general disclaimer from preventing himself to be sued based on negligence that resulted to damages. The law provides that although disclaimers are allowed, it cannot be made or put in general terms as to limit the liability of the owner in every case, as the limited liability depends on the nature of the obl igation and must be reasonable as not to cause boundless responsibilities. It was held in the case of Staples v West Dorset District Council (1995) 5that a disclaimer or notice to be valid must renounce responsibility based on specific issues6. In this case, Simon posted a notice renouncing all responsibility for