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Car Sale - binding contract -Postal Rule- invitation to treat

  • 01-04-2016 9:18pm
    #1
    yvonneclare
    Registered Users, Registered Users 2 Posts: 14 ✭


    Hello. Would appreciate any help with this case study.

    A car was advertised for sale in the paper. An email was sent to the car dealer offering a lower price. Dealer replied rejecting the offer but stated another car he had may be suitable at a lower price. Buyer immediately wrote and posted a cheque for the other car with the lower amount. By the time the car dealer got the cheque the car had been sold elsewhere. Does a legally binding contract exist?

    Thanks


Comments

  • #2
    Del2005
    Registered Users, Registered Users 2 Posts: 19,100 ✭✭✭✭Del2005


    yvonneclare wrote: »
    Hello. Would appreciate any help with this case study.

    A car was advertised for sale in the paper. An email was sent to the car dealer offering a lower price. Dealer replied rejecting the offer but stated another car he had may be suitable at a lower price. Buyer immediately wrote and posted a cheque for the other car with the lower amount. By the time the car dealer got the cheque the car had been sold elsewhere. Does a legally binding contract exist?

    Thanks

    Did the dealer respond to the 2nd email? In order to hold the car a deposit would have had to have been paid by CC or DC.


  • #3
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,375 CMod ✭✭✭✭Nody


    Answer is no as the information of an alternative car is still invitation to treat as the contract is only formed once the money has been accepted for the goods in question by the seller; in this case by the time the money was offered to the seller the seller was not interested in accepting it anymore and hence no contract was formed.


  • #4
    VincePP
    Closed Accounts Posts: 982 ✭✭✭VincePP


    The scary part is the buyer sent a cheque without even seeing the car - the buyer is ripe for scamming.

    In addition, even if the dealer had received the cheque, there would still be no onus on the dealer unless the dealer agreed to accept a cheque as deposit and to hold the car based on that. - Basically both parties must agree to terms before a contract can even be considered - you can't just send a cheque and think you have rights


  • #5
    VincePP
    Closed Accounts Posts: 982 ✭✭✭VincePP


    Just realised the OP says "case study" - so its probably theoretical and also explains the "cheque" :)

    Good luck in the exam. :D

    In any contract, terms must be agreed and accepted by both parties to be enforceable.


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