ACCA LW · Chapter 2 · Question 3 of 12
Ana offers to sell her car to Ben for 8,000. Ben replies 'I will pay 7,000'. Ana refuses. Ben then says he will pay 8,000 after all. What is the legal position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) There is no contract because Ben's counter-offer destroyed Ana's original offer
Explanation
A counter-offer rejects the original offer and brings it to an end, as in Hyde v Wrench. Ben's later attempt to accept 8,000 is therefore a fresh offer, which Ana is free to accept or reject. Writing is not required for a contract to sell a car.
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