Benitez Computers solution by Contract Law

Essay by doudou880922University, Bachelor'sB+, March 2009

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Benitez Computers solution by Contract Law

The fax sent by Benitez Computers Ltd to its potential customers should be draw attention firstly because the different treat to this fax would put Benitez Computers Ltd into complete different positions in law. The content of the fax could be treated as invitation to treat, as inviting potential customers to make the offer to them. Moreover, it also could be seen as offer but still waited for the acceptance from its potential customers.

Firstly, if the fax is seen as the invitation to treat, the case would be much more simplified to analyze and understand. Because the fax is the not the offer and then the replies by both of Mr. Gerrard and Mr. Torres would be the offers they made to Benitez Computer Ltd. And it is obvious to see the general rule would apply to the delay of post and messages which were sent by different ways rather than using postal rule.

Both of Mr. Gerrard and Mr. Torres tried to communicate with Benitez Computers Ltd because the offers have to be communicated before it could be formed. But they failed and Benitez Computers Ltd never knew their offers until they sold all stocks they hold out. So the offers could not be formed between Mr. Gerrard, Mr. Torres and Benitez Computers Ltd with respectively. Even Benitez Computers Ltd received the offers from both of Mr. Gerrard and Mr. Torres before they made an offer with another company, they also had the right to reject their offers. So no contract had been formed. This is clearly illustrated in the case of Powell v Lee. Under this circumstance, Benitez Computers Ltd would be in a safe position in the law with respect to the two potential contracts. And they did not to...