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Dany is an international trader in computer. In June 2018 he wrote a proposal to his most frequent client, Alan, saying that he was offering to sell 100 motorbikes, XYZ brand, latest version for US$1000/a motorbike. The detail description of a motorbike was in the Exhibit A attached with the contract.Alan immediately responded that he accepted the proposal, but he was only willing to receive the good in a safe and sound condition. Decide what are the legal nature of Dany's proposal and Alan’s reply?

Answer :

Answer to the following question is as follows;

⇒ The Legality of Danny's Proposal;

  • In this case, Danny's proposal is regarded an offer until it is approved by Alan in the market. As Danny's promised to sell 100 motorcycles for US$1000 each.
  • The proposal from Danny's perspective is an offer since Alan did not acknowledge the agreement in the beginning. Once acknowledged by Allen, this exchanging of bikes becomes an offer.

⇒ Allan's response;

  • Allan's response, on the other hand, was interpreted as offer and acceptance because no agreement was reached among them and Allan takes the bike only when it is in good shape.
  • If the bikes are not in excellent condition, Allen has the right to decline the seller's contract at any moment.

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