offer and accept

offer and accept.



Welwyn Widgets Ltd has recently engaged Di Saster as a new director.

In her first week at work, Di decides that the company requires new equipment to maintain their safety
record, and sees the following advertisement in the trade magazine “Widget Weekly”:-

“Whizzo Widget – keep a track on your production process with our new software”. Di contacts the sales
director of Whizzo and asks them to quote a price for installation of Whizzo’s new software. The Whizzo sales
director (who has not yet achieved his monthly sales quota), tells Di, “I am certain that for your business
we can guarantee a price of £3,000, which would cover all installation costs, together with staff training.
However, please get back to me as soon as possible, since I cannot hold that price for more than a week”.

Later the same day, Di receives an e-mail advertisement from the company EasyWidget, which states; “We can
offer “state-of-the-art” production software for small businesses at a price guaranteed not to exceed
£2,500”. Di immediately telephones EasyWidget to place an order. During discussions with the EasyWidget
representative, it becomes clear that the actual costs of the installation would exceed £4,000. Accordingly,
Di withdraws her order.

The next day, Di telephones Whizzo, and leaves a message on their answerphone system accepting the offer of
£3,000 made by the Whizzo sales director, whilst also asking whether the cost could include on-site training
for any new staff Welwyn Widgets may take on in the next 6 months.

Di subsequently changes her mind, and telephones Whizzo to cancel his order. Her call is now answered by the
receptionist, who tells Di she has passed the answerphone tape to Whizzo’s sales director, who will be
listening to them shortly; however, she will make a note of Di’s wishes.

Describe the process of formation of a contract via offer and acceptance. Having done this, advise whether Di
has concluded a binding contract with either Whizzo, EasyWidget or both. Use case law to support your answer


offer and accept

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