ExpertMedium2 marksMultiple Choice
ACCA · Question 46 · The law of obligations
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?
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?
Answer options:
A.
A valid acceptance.
B.
A counter-offer.
C.
A request for information.
D.
An invitation to treat.
How to approach this question
Analyze the phrasing 'Would you accept...'. It is an inquiry, not a firm demand to change the terms. Apply Stevenson, Jacques & Co v McLean.
Full Answer
C.A request for information.✓ Correct
MediSupply's reply is a request for information. As established in Stevenson, Jacques & Co v McLean, merely asking a question about the terms of an offer (such as credit terms or delivery schedules) does not amount to a counter-offer and does not destroy the original offer.
Common mistakes
Confusing a request for information with a counter-offer (Hyde v Wrench). A counter-offer introduces new mandatory terms, killing the original offer.
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