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Review Your SQE 1 Practice Records

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Mr. Baker, an architect, received a leaflet from WebCreate Ltd, website designers, advertising their website design packages. On the back of the leaflet was a copy of WebCreate Ltd's standard terms, which included a limitation clause. Mr. Baker wrote to WebCreate Ltd, requesting them to design his website and attached his own standard terms and conditions, which did not contain a limitation clause. WebCreate Ltd responded with a quotation of £2,500. Mr. Baker signed and returned a tear-off slip to WebCreate Ltd, stating that he accepted the quotation on WebCreate Ltd's standard terms and conditions. 

Which of the following statements best describes the legal position?

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The legal position here hinges on the sequence of offer and acceptance. WebCreate Ltd's initial leaflet was an invitation to treat, not an offer. Mr. Baker's letter requesting a design and attaching his standard terms can be seen as an invitation to negotiate or possibly an offer. However, the critical moment came when WebCreate Ltd responded with a quotation for £2,500. This quotation is considered an offer. Mr. Baker accepted this offer by signing and returning the tear-off slip, explicitly stating that he accepted on WebCreate Ltd's standard terms and conditions. By returning the tear-off slip with a clear statement of acceptance, Mr. Baker agreed to the terms of the offer, including WebCreate Ltd's standard terms and conditions. Thus, the contractual terms are those set by WebCreate Ltd. 

Key Point: In contract law, a quotation generally constitutes an offer, and acceptance must align with the terms of that offer. Any acceptance that refers to the terms of the offer confirms those terms as part of the contract, even if prior negotiations or communications included different terms.

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