Contract Law Essay

There are four legal requirements that must be met for a contract to exist between Mike and Jaswinder: offer, acceptance, consideration, and intention to create legal relations. In this respect, the advertisement and the conversation that took place between Mike and Jaswinder may be viewed as one of the elements of the contract, namely the offer. In fact, Mike makes the offer to sell the excavator at first inviting everyone who wants to buy and when Jaswinder has a conversation with Mike, he makes the offer directly to Jaswinder involving him in the process of negotiations concerning the purchase of the excavator. Mike confirms his offer in the written form sending the letter on September 15 to Janswinder. The latter accepts the offer with his letter written on September 18. However, it is important to stress that Janswinder is still thinks over the offer made by Mike because he still wants to get two spare tires at the price of 3,750 pounds. This means that Mike should consider the offer of Janswinder to accept or refuse from selling the excavator. However, as Mike did not receive the latter from Janswinder and got the better offer on September 17, he wrote the letter to Janswinder on September 18 to refuse from the deal with Janswidner. In such a way, he terminated his offer by revocation as was the case of Byrne v. Van Tienhoven because Mike, as an offeror, has withdrawn his offer before the acceptance was made. In this regard, Janswinder’s letter in which he confirms the agreement to pay 3,750 pounds cannot be viewed as the acceptance of Mike’s offer because Janswinder makes a counter-offer as he wants to get two spare tires that implies that he rejects Mike’s offer as was the case of Hyde v. Wrench. Therefore, Mike can sell the excavator to Dimitri because Janswinder does not have a contract with Mike.