• 1 Marks

BCL – L1 – SA – Q18 – Contract Law

Assesses if a letter constitutes a valid offer.

Barnes wrote Morgan, “I will sell you my house and lot at 123 East Elm Street, Accra, Ghana for $950,000 payable upon merchants.” If the letter contains terms which are deemed sufficiently certain and definite, which of the following statements is correct?

A   Barnes’ letter is not an offer unless Barnes intended it to be an offer.

B   Barnes’ letter is not an offer unless Morgan thought Barnes intended to make an offer.

C   Barnes’ letter is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an offer.

D  Morgan would be justified in thinking it was intended as an offer.

C

Explanation:

An offer requires intent to be bound, judged by what a reasonable person would interpret from the communication. If Barnes’ letter is clear and definite, it is an offer if a reasonable person would see it as such (C). Barnes’ intent alone (A) or Morgan’s perception (B) is not sufficient, and (D) is incomplete.

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