ExpertEasy2 marksMultiple Choice
ACCA · Question 04 · The law of obligations
'AeroDyne Drone Logistics Ltd' sends an automated email to a potential client stating: "We can provide daily drone delivery services for your medical supplies at £500 per week. Please reply to discuss terms."
In contract law, what is the legal status of this email?
'AeroDyne Drone Logistics Ltd' sends an automated email to a potential client stating: "We can provide daily drone delivery services for your medical supplies at £500 per week. Please reply to discuss terms."
In contract law, what is the legal status of this email?
Answer options:
A.
A binding offer.
B.
An invitation to treat.
C.
A counter-offer.
D.
A declaration of intent.
How to approach this question
Analyze the wording 'reply to discuss terms'. This shows negotiations are still open, meaning it cannot be a firm offer.
Full Answer
B.An invitation to treat.✓ Correct
An offer must be a definite promise to be bound on specific terms. The inclusion of 'Please reply to discuss terms' shows that AeroDyne is inviting negotiations, making it an invitation to treat rather than a firm offer.
Common mistakes
Confusing a price quotation with a legal offer. Quotations are generally invitations to treat unless explicitly stated otherwise.
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