Case Studies under Mirror Image Rule

1. Gibson v. Manchester City Council

  • In Gibson v. Manchester City Council, Mr. Gibson completed a form from the council in order to get the conditions of his mortgage and learn the worth of his council property, with the intention of purchasing it.
  • He received a letter from the council with the information and an application to complete if he wanted to proceed. He gave the filled-out form back. However, a new administration soon took office and put an end to the municipal housing sales. Mr. Gibson was so informed that he could not complete his transaction.
  • He filed a lawsuit against the council, claiming he was entitled to finish the transaction because a legally binding agreement was already in place.
  • The court determined that the council’s letter was not an offer.
  • There was never a contract made for the council to break because there was never an offer to accept. This is a result of the lack of an offer that Mr. Gibson may have accepted in return. As a result, poor old Mr. Gibson was unable to purchase his home.

2. Minneapolis & S. L. Ry. v. Columbus Rolling Mill

  • Another case that addressed the mirror image rule is Minneapolis & S. L. Ry. v. Columbus Rolling Mill. It concerned a railroad firm taking legal action against a manufacturing company. In March 1880, the Minneapolis & St. Louis Railway Co. requested a price from Columbus Rolling Mill Co. for the delivery of iron rails.
  • They responded by offering to sell the railroad firm between 2,000 and 5,000 tons of 50 kg rails; the acceptance had to be accepted by December 20, 1879, for it to be considered enforceable. The railroad business placed an order for 1,200 tons of rails at the same price in a letter dated December 16.
  • Columbus claimed that they were unable to complete the reduced order at the initial cost, and the railroad tried to file a breach of contract lawsuit.
  • The court determined that this case did not satisfy the mirror image requirement. Columbus Rolling Mill refused to accept Minneapolis & St. Louis Railway Co.’s attempts to modify the conditions of the initial offer, which is why. Since the acceptance did not match the offer, the contract was void.

Mirror Image Rule: Meaning, Importance, Implications and Case Studies

Similar Reads

What is Mirror Image Rule?

Mirror image rule describes how an offer has to be accepted for there to be a legally binding agreement. According to this regulation, an acceptance must precisely match the terms and circumstances of the initial offer to be considered genuine. A counter-offer is any alteration or departure from the conditions of the offer. This concept is based on the idea that the offer is accepted in its original form by one party, and the contract is then drafted to reflect that acceptance. The “absolute acceptance” rule, as it is often known, states that a contract may only be formed if all parties propose and agree to identical conditions. A contract is created when the parties propose and accept the precise conditions; this is also known as the “absolute acceptance” rule....

Importance of Mirror Image Rule

1. Clarity and Certainty: Ensuring clarity and certainty in a contract is the main purpose of the mirror image rule. It removes uncertainty regarding the conditions that have been agreed upon by demanding that an acceptance accurately represent the offer. As a result of both parties’ clear grasp of their responsibilities and rights, the likelihood of future issues resulting from misread terms is reduced....

Implications of Mirror Image Rule

1. Clarity and Certainty: Contractual commitments are made clear and definite by the mirror image rule. The need for the acceptance to match the offer exactly removes any room for interpretation or misunderstanding caused by inconsistent or changed wording. It lessens the possibility of future disagreements or miscommunications by assisting both parties in properly knowing their rights and responsibilities....

Case Studies under Mirror Image Rule

1. Gibson v. Manchester City Council...

Conclusion

The mirror image rule stipulates that an offer must be accepted in exactly the same, unconditional form as it was made. Put differently, any alterations or adjustments to the conditions of the offer should be regarded as a counteroffer rather than an acceptance. In addition to preventing misunderstandings or conflicts resulting from contradictory or changing wording, this regulation provides clarity and certainty in the construction of contracts. Although the mirror image rule offers a structure for contract generation, there are certain exclusions and alternate methods that could be useful in specific situations. When engaging in a contract, both individuals and businesses must be aware of the restrictions and exceptions....

Mirror Image Rule- FAQs

When is a rejection not a counteroffer?...

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