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Fundamentals of Contract Law

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This letter also stipulated the precedence of MSC company terms and provision was made for an increase in price. Therefore Betty has not agreed to the original terms of Able’s contract, she has only accepted conditionally1. Therefore, this is a counter offer which is in effect a rejection of the original offer that Able has made. Therefore, it is now Betty’s offer that is up for negotiation and Able has indicated his acceptance of Betty’s offer by signing on the tear off slip that is attached to her company’s order form. Since there is no further communication from Betty, this would be deemed to be the final agreement between the two parties with Able having consented to Betty’s terms. A valid contract between two parties may be said to exist only when the parties “assent to the same thing in the same sense, and their minds meet as to all terms.”2 Able was free to reject Betty’s counter offer, since a counter offer in effect, frees the offerer Able from any liability.3 But he signed on Betty’s order form, which means he has accepted the terms of Betty’s counter offer and the original offer has been rejected.
However, this raises the issue of the clause that he has entered in the tear off slip that he has signed, which states that the offer was accepted based on the terms of the original offer. This belies the agreement implied through Abel’s signature on the tear off slip, because in indicates that Able is still not ready to accede to Betty’s terms but is intent on enforcing the original terms.&nbsp.