- Created by: Majid
- Created on: 23-03-13 20:34
Termination of an Offer (2)
2. Lapse of time: Another way in which a problem may arise is when terminating an offer is through lapse of time. Time limit given: In this particular area, if a specific time limit is laid down in an offer then the offer will terminate at that time.Day given: If a day is mentioned then the offer will terminate at midnight of that day. AO2: However, this can problematic as it depends on the judges interpretation of which midnight to go along with.No time limit given: But if no time limit is given, then the offer will lapse once a "reasonable length of time passes". Whats reasonable depends on the subject matter. A case to illustrate this is "Ramsgate Hotel v Monteoire". In this case the "offer" was to buy shares. It was "accepted", 5 months later but the offer was terminated as shares fluctuate because they are a commodity. AO2: This may cause a problem to arise when terminating an offer because it can lead to uncertainty as each case is different, and different judges have different interpretations.
3. Failure of a condition: Another cicrumstance in which a problem may arise is when terminating an offer is through "failure of a condition". In this particular area if offers are made subject to a condition and fails the offer is terminated. Therefore, the judges may sometimes "imply" a condition. A case to illustrate this is "Financings Ltd v Stimson". In this case the "offer" was for a car, but it was badly damaged in a fire and the company tried to accpet but there was no contract. Therefore, Lord Denning implied a condition. This is an example of a fair, logical decisionas it protects the buyer in a situation where there is an inequality of bargaining powers. AO2: This can lead to uncertainty as each case is different, and different judges, interpret things differently.