IT provided this offer in writing and was formally dated. IT sent an agent to personally deliver this offer to the Joker at his new residence at a hotel in Carlton, Victoria. At the very e
Question:
This is a question from the Contracts Law, Victoria University, Australia.
The Joker has been offered a one-year promotional contract with IT for one-million dollars.
IT provided this offer in writing and was formally dated. IT sent an agent to personally deliver this offer to the Joker at his new residence at a hotel in Carlton, Victoria.
At the very end of their proposal, it states: “If we do not receive any response or communication from you by 5pm tomorrow, we take it that you have agreed to this agreement”.
The Joker was not interested in this agreement and chose to ignore their offer.
Three days after the letter was delivered, IT called the Joker to inform him that he had his first IT promotional gig booked for the following week. The Joker is confused and comes to see you to discuss his options.
Is the contract between IT and the Joker binding?
Below is the answer so far written in approxomately One hundred words, need to complete in Six-hundred words.
With reference to case law and legislation,
Please complete using IRAC method as given below.
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Answer:
Issue
IT claims that The Joker accepted their offer by not responding within a specified time frame. The Joker, on the other hand, is unsure if he accepted the offer by remaining silent or rejected it by ignoring it.
The issue here is whether the contract with The Joker is binding.
Rule
For a contract to be binding, there must be an offer, acceptance, and consideration. Silence or inaction generally does not constitute acceptance.
Application
In Felthouse v Bindley (1862) EWHC CP J35, the court held that silence does not constitute acceptance of an offer. The Joker can rely on this case and argue that he did not accept the offer simply by remaining silent.
Conclusion
The Joker may not be bound by the contract with IT, as he did not provide any acceptance, and silence or inaction generally does not constitute acceptance.
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