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(a)The advertisement by A is an invitation to treat. A is simply inviting would be buyers of the
motor vehicle to make an offer to buy the same at that price which offer A may accept or reject.
This position is consistent with a sale by display where a seller displays goods with cash price
tags. The prospective buyer makes the offer.
This reasoning is consistent with the decision in Fisher V. Bell.
(b)Though acceptance is an integral part of a contract, in this case there was no acceptance as B's
letter was merely an offer to A to take the car at that price. In any event, there is no express or
implied intimation by A that anything be communicated by post.
(c)There is no contractual relationship between C and A on account that after he had inspected
the car and satisfied himself that it was accepted to him, C made all offer to take it at Kshs.
500,000 but the offer was rejected. This effectively terminated C's offer to A.
(d)There is no contractual relationship between D and A. Since D did not even make an offer to
buy the motor vehicle. The fact that A agreed to her request to go to the bank cannot render A
liable.
(e)There is a contractual relationship between A and E. This is because A accepted E's offer to
take the car at Kshs. 600,000. This created a legal obligation on the part of E to take the car.
His change of mind amounts to a breach of contract for which he is liable in damages A is
therefore entitled to sue E. This position is consistent with the decision in Byrne V.
VanTienhoven where the offeror purported to revoke the offer after it had been accepted
by the offeree.
maurice.mutuku answered the question on April 30, 2018 at 08:03
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