1. Agreement I & II Flashcards
Definition of ‘Offer’
An offer is an expression of willingness to contract on specified terms made with the intention that it is to become legally binding as soon as it is accepted by the person who it is addressed - an Invitation to treat.
A requirement of an offer
- Be certain
- Be address to the offeree
- Show intention to enter into a legal relationship.
Case ref: Gibson v Manchester City council
Case reference on Agreement
Gibson v Manchester City Council (1979)
Used when the contract is not clear and it lacks certainty!
What is NOT an Offer?
- Invitations to Treat
- Invitations to Tender
- Auctions
Invitations to Treat are the general rule regarding advertisement. What are the case ref ?
- Adverts - PARTRIDGE V CRITTENDEN (1968)
- Display of Goods - Fisher v Bell (1961)
Pharmaceutical society of GB v Boots (1953)
EXCEPTIONS
ADVERTS that’s are “Unilateral offers” case red: Carlill v the carbolic smoke bell company (1993)
Unilateral offers case ref:
- Carlill v The Carbolic Smoke Ball Company (1893)
- Lefkowitz v Great Minneapolis Surplus Store (1957)
- Leonard v Pepsico (1999)
Invitations to tender case ref:
Spencer v Harding (1870)
Invitations to treat; auction
Payne v Cave (1789) & Barry v Davies ( 2000)
How should an offer be communicated?
- In writing
- Orally
- By conduct ( Taylow v Laird) 1856)
Termination of a offer occurs by?
An offer remains open until its rejected, terminated or lapsed.
Termination of an Offer:
Rejection case ref
‘Counter-offer’ – Hyde v Wrench (1840)
‘Battle of the forms’ – Butler Machine Tool v Ex-Cell-O Corp (1979)
‘Requests for further information’ – Stevenson, Jaques v McLean (1880)
Termination of an Offer:
Lapse case re
- Passage of time – Ramsgate Victoria Hotel v Montefiore (1866)
- Death – Bradbury v Morgan (1862)
- Non-fulfillment of a condition – Financings v Stimson (1962)
Termination of an Offer:
Revocation case re
- Payne v Cave (1789)
- Byrne v Van Tienhoven (1880)
- Dickinson v Dodds (1876)
What is the first step in establishing there is a contract?
To determine whether there is a valid offer.
How can you decide if their is an offer?
From an invitation to Treat.
Who is the offeree?
The person accepting the offer.
In Holwell Securities Ltd v Hughes (1974) notice of acceptance was posted but it never reached the offeror.
Was there a valid contract?
There was no valid contract as the terms of the offer required the acceptance to be actually communicated. The language used in the offer was such to indicate that the notice should be received.
If the postal rule is applicable, the acceptance is valid when the letter is posted.
The authority for this is the case of:
Adams v Lindsell (1818)
The postal rule does not apply to acceptance made by instantaneous mode of communication.
True acceptance made by instantaneous mode of communication is valid when received - Entores v Miles Far East Corp (1955)
Unilateral offer is?
An offer that is accepted by the performance of a proscribed act.
Essential element of a contract
Offer, acceptance & consideration
Objective test case ref:
Smith v Hughes
Bilateral contract
Both parties agreement on the contract - mutual exchange of promises.
Offereee
The Person accepting the offer
Invitation to treat is?
The willingness to negotiate
When would you use Storer v Manchester City council
When we argue that something should be construed as an offer.
Meer puff
Something not to be taken seriously
Case: Pepsi Co and Lenard
