Question Tag: Offer and Acceptance

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  • 8 Marks

BCL – May 2017 – L1 – Q4b – Contract Law

Discuss the legality of withdrawing a promise to keep an offer open for a specified period under Ghanaian law.

b) ‘A promise to keep an offer open for a specified period can be withdrawn by the promisor before the expiration of the period’

Required: Explain whether this is a true position of the law in Ghana now. (8 marks)

 

  • It was a common law principle that “a promise to keep an offer open for a specified period could be withdrawn before the expiration of the time.” (1 Mark)
  • This was especially true if no consideration was provided by the promisee for the promise. (1 Mark)
  • The courts sought to make changes to this principle, especially in situations where, through some forbearance on the part of the promise, an effort was made to accept the promise. (1 Mark)
  • However, this statement is no longer true in Ghana. Section 8(1) of the Contract Act, 1960 (Act 25) states that “a promise to keep an offer open for acceptance for a specified time shall not be invalid as a contract by reason only of the absence of any consideration therefor.” (4 Marks)
  • In situations where the promisee may have relied on the offer to keep the offer open and has made efforts to accept the offer, it would not be fair to withdraw the offer or promise midstream only for the reason that no consideration has been offered. (2 Marks)

(Total: 8 marks)

  • 20 Marks

BCL – May 2017 – L1 – Q2 – Contract Law

Evaluate the likelihood of success for legal actions based on an advertisement offering a reward for product effectiveness.

On 20 November 2015, the ‘Daily Graphic Newspaper’ advertised a promotion sale for Dabenda Company Limited stating that the Company’s “Miracle Balm” was capable of treating boils and foot-rot and that whoever bought the product and used it per the prescription without the boils and foot-rot disappearing would be entitled to GH¢200.00. Pursuant to that promise, the Company gave a standing order to its bankers on that pledge. The promotion sale was due to end on 19 November 2016.

Madam Akua Mansah heard of the advertisement and bought one of the balms. She used it according to the prescription and also applied some of the cream to her 14-year-old daughter who had similar problems but their boils and foot-rot still persisted. She intends to sue the Company.

Required:

i) Explain whether Madam Akua Mansah is likely to succeed with her intended action. (10 marks)

ii) Madam Akua Mansah’s daughter also intends to take action against the company. Explain her chances, if any. (10 marks)

i) For there to be a binding contract there must be:

  • an offer, acceptance, consideration, and intention to create a legal relation.

From the scenario:

  • The advert in the newspaper amounted to an offer.
  • The purchase of the balm and its applications amounted to acceptance.
  • The response to the advert itself is the consideration that has been provided.
  • The deposit of the money at the bank constitutes an intention to create a legal relation.

The company is therefore liable to Madam Akua Mansah.

(2 Marks for each of the elements of the contract stated)
(10 marks)

ii)

  • In every contract, the parties must have capacity in the sense that they must be adults and of sound mind.
  • In the scenario above, Madam Akua Mansah’s daughter is said to be 14 years of age.
  • By law, she is a minor and can therefore not sue or be sued.
  • She therefore lacks capacity to sue the company.
  • There is no privity of contract.

(2 Marks for each of the elements of the contract stated)
(10 marks)

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