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Tutor mode · Contract LawQ 12 of 20

Scenario

Anaya, a solicitor, emails a client, Daniel, a written quote to act on his commercial lease renewal for a fixed fee of £1,800. Her email ends: “If I do not hear from you by 5pm on Friday, I will assume you wish to proceed and will start work.” Daniel reads the email but does not reply, as he is still waiting for a rival firm’s quote. On Friday, having heard nothing, Anaya opens a file, drafts the heads of terms, and invoices Daniel for the agreed fee.

Which statement best reflects the position?

  • AA binding contract formed, because Daniel was told that silence would be treated as acceptance.
  • BA binding contract formed, because Anaya relied on the quote by starting work.
  • CNo contract formed, because an offeror cannot treat the offeree’s silence as acceptance.
  • DA binding contract formed, because acceptance can be inferred from Daniel’s failure to object.
  • EA binding contract formed, because the quote set out certain terms and a clear deadline.
Citation: Felthouse v Bindley (1862)FLK1 · Contract
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