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Question

i have problem with a scenario which is part of my piece of course work i have to do. basically a mans mobile phone contract is due for renewal at end of month, and its currently begining of month. he gets letter through saying " it couldnt be easier, u need do nothing and if we dont hear anything we will automatically renew your contract". well the man looks else where for better deal, but within six days (6th of the month), the company has already sent him confirmation of renewal papers through. i have been asked the question of has he accepted the contract? i need answer in terms of offer,acceptance , consideration etc. any help would be appreciated. i know that normaly acceptance has to be communicated in law, however here it doesnt ask for any-and takes none as acceptance, any students/law experts who can help this novice, with as much detail/cases to back up as u can give. please help im new to this.

Answer 1

In business law a contract is made by an offer and an acceptance. In your scenario the offer was made by the mobile company to renew the contract at the end of the month by the man doing nothing. This states that the offer is open for a month. This is an invitation to treat not an offer to sell.

The man's acceptance of the offer would come at the end of the month. As the time hasn't lapsed the acceptance was not made. Even though the confirmation of renewal papers had been received on the 6th day of the month, a contract had NOT been made.

Answer 2

On a technicality, Yes he has as not replied to the company so he has accepted the contract as the company has told him that they will renew his contract.

However, he has not signed any contract saying that they can renew his contract. If you have what he signed then the second part is true. Also it is the sixth of the month so they have renewed his contract early- they are allwed to do this a few days before the end of the month.

Therefore, the court would rule in favour of the man - if he sues - as it says that the contract is due for renewal at the end of the month.

Answer 3

He has accepted the offer. By his failure to reply. His contract was do for renewl at the end of the month. He failed to cancel the offer mailed to him. The company did not renew until the six of the month. His failure to respond by declining the offer as the letter stated was his acceptance.

Answer 4

Automatic Renewal Clause Law and Legal Definition

An automatic renewal clause allows an agreement to continue for a defined period if the existing agreement isn't renegotiated within a specified time measured from the expiration of the current contract. The term of renewal depends on the specific contract language, but such clauses generally provide that the contract shall be automatically renewed for the same period (or some lesser term) unless either party, at some stipulated and predetermined time (i.e., 60 days before expiration), gives notice to the other of its desire to end the agreement. Generally, if the contract doesn't provide a time period for the contract to be subject to renewal, it may be renewed indefinitely.

It is a clause which may be included in various contracts, such as an employment contract or rental lease. Some leases include a provision for the lease to automatically renew for another year if the tenant fails to give notice by a certain date that they do not want to renew. Local laws vary, but in some areas, such provisions in a lease are unenforceable. Some state laws govern automatic renewal clauses, for example, some states require such clauses to be initialed by a tenant, or require notice of renewal to be provided by the landlord a number of days in advance, However, localities within a state may also regulate such clauses, so that they may be enforceable under state, but not local law. Therefore, laws in your area should be consulted to determine applicable requirements. In one example, California state laws requires automatic renewal clauses to be printed in eight-point bold faced type to be enforceable, but local laws may impose other requirements.

Many collective bargaining agreements in the federal sector have a provision, usually located at the end of the agreement, stating that if neither party gives notice during the agreement's 105-60 day open period of its intent to reopen and renegotiate the agreement, the agreement will automatically renew itself for a period of x number of years. An automatically renewed agreement, under certain circumstances, can also serve as a contract bar.

The following is an example of a state statute dealing with automatic renewal clauses:

"Notwithstanding the provisions of any residential lease, in order to enforce any automatic renewal clause of a lease of an original term of two months or more which states, in effect, that the term shall be deemed renewed for a specified additional period of time of two months or more unless the tenant gives notice to the landlord of an intention to quit the premises at the expiration of the term due to expire, the landlord must give notice to the tenant as provided in this section. The notice must be in writing and direct the tenant's attention to the automatic renewal provision of the lease. The notice must be served personally or mailed by certified mail at least 15 days, but not more than 30 days prior to the time that the tenant is required to furnish notice of an intention to quit. "



I hope that helps.

Answer 5

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