Miracles always be with you

An Offer or Acceptance?

Posted by snowie , Sunday, April 25, 2010 2:31 PM

When Ali and his family take meal in a restaurant, there is a contract. But when is the offer? And when is the acceptance? Also, suppose he sees this special dish 'X' on the restaurant's website. He calls and they say it should be available. So he makes a reservation. But after that they say it is out of stock. Discuss the issue above whether Ali’s reservation contract enforceable? And is his contract for the availability of X enforceable?

The elements of a contract are offer, acceptance, exchange of consideration and discussion of terms and conditions/promises. It would be hard pressed to even argue that an offer and acceptance took place. He could try to argue it is when he enter the restaurant he is offering to eat there and they are accepting his offer by seating him. However this would have policy repercussions because say for instance he decides to change his mind after seeing the menu and leave prior to ordering, he could technically be in breach of contract. The Boots Pharmacy case explores this issue and it was determined in a retail setting the offer and acceptance does not take place until the final transaction where the customer makes an offer to the cashier to purchase a product. Therefore, I would imagine the same rule would apply in the restaurant setting where money (thus consideration) is exchanged.

Now in regards to 'X' dish as there was no contract in place he could not sue for breach of contract. The representation made on the phone is not a guarantee - notice the restaurant said it "should" be available. Should do not imply something definite - as such I think they would have no liability.

Ali’s contract for the reservation is not enforceable. He offers no consideration in exchange for their service. If he paid them money in exchange for the reservation, for example, then perhaps he would have an enforceable contract in theory.