SEMESTER 1501 COURSEWORK ASSIGNMENT Essay Example | Topics and Well Written Essays - 500 words

SEMESTER 1501 COURSEWORK ASSIGNMENT - Essay Example The Labour party took power and halted the sales of the houses. This decision made Mr. Gibson sue the respondents claiming a breach of a binding contract. The county court and the court of appeal ruled in his favour but this was appealed to the House of Lords where the earlier decision was quashed. The dispute was a result of distinguishing between an offer and an invitation to treat. Notably, it should be comprehended that an offer is an expression of the desire to contract on various conditions upon acceptance while mere negotiations to enter into a given contract are not offers but invitations to treat. However, Geoffrey Lane LJ who was a court of appeal judge dissented and held there was no enforceable contract. The House of Lords unanimously allowed the appeal and made a final decision that there was no binding contract between the two parties. The principle behind the decision of the court of appeal was affirmed by Lord Denning. The honorable judge emphasized that the communication between the parties should be also established by their conduct. Their conduct had supposed a binding contract between them and this led to the parties coming into an agreement. The House of Lords had a unanimous approach in this case. The court affirmed that there was never an offer by the council available to be accepted or rejected. Therefore, if there was no offer in the first place then, a binding contract was not realized between the two parties. The council cannot be accused of breaching. Lord Diplock embraced the conventional approach which affirmed that there was never an offer which constituted to a legally enforceable contract. The conventional approach requires that the documents to be relied upon to be analyzed thoroughly and ascertained whether in their construction there can be found a contractual offer to sell the house and an acceptance of such an