Question 1

**Scenario:** 'AeroDyne Drone Logistics Ltd' negotiates with 'MediSupply Co' to provide vaccine delivery routes. AeroDyne emails: "We offer the Northern route for £50,000 per year." MediSupply replies: "Would you accept payment in 12 monthly installments?" AeroDyne ignores this reply and sells the route to a competitor. MediSupply claims AeroDyne breached the contract.

**Question:** In contract law, what is the legal status of MediSupply's reply regarding monthly installments?

Accepted Answer

Analyze the phrasing 'Would you accept...'. It is an inquiry, not a firm demand to change the terms. Apply Stevenson, Jacques & Co v McLean.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing a request for information with a counter-offer (Hyde v Wrench). A counter-offer introduces new mandatory terms, killing the original offer.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA LW — Corporate and Business Law Practice Exam 2

More questions from this exam