Examination application

Dave and the tap Is this an offer?Dave and the tap.Dave also said that he thought that installing an outside tap would be a good idea. Eric asked him how much he would pay for the tap, and Dave said, “not more than £150”. Without consulting Dave any further, Eric installed the outside tap the next day, whilst Dave was out.Explain why there was no agreement between Dave and Eric for the installation of an outside tap. (5 marks)This question is really about whether there is a valid offer and acceptance. This would be your starting point.The next point is to establish why there is no offer. A valid contract requires a valid offer and acceptance and in order to be an offer it must be shown that the offeror had the intention to be bound. It is unlikely that there is a valid contract as firstly there is no offer and acceptance by either Eric or Dave, nor did Dave wish to be bound.When Dave said that he thought that installing on outside tap would be a good idea, Dave is making a statement not an offer. This is also true when Eric asks him how much he would pay for the tap. This is a request for information not an offer, decided in Harvey v Facey. It could be an invitation to treat, encouraging Dave to enter into negotiations.When Dave replies this is not an offer but a answer to the question, as was the statement of "lowest price £900 for Bumper Pen".When Eric installs the tap, there is no contract because there is no valid offer. Using the information above as a template, just changing the details to fit, answer this questions. "How much will you sell your fountain pen for?" asked Lucy."£20" replied Katie."I'll have it", said Lucy.Katie refuses to sell.What rights does Lucy have?