2.1-2.2: Offer & Acceptance Flashcards
What is the difference between an offer and an invitation to treat?
In an offer, the offeree must intend to be legally bound by the terms once accepted
What are some examples of invitations to treat and what cases demonstrate this?
goods on display in a window (Fisher v Bell), statement of price (Harvey v Facey)
What is the difference between a bilateral offer and a unilateral offer?
Bilateral, both parties enter into an obligation to do something, unilateral, only obligation on one party if a course of action is followed by another person
When will an advert be more than just an invitation to treat?
Where it is a unilateral offer and makes a promise in relation to a course of action (Carlill v Carbolic Smoke Ball Co Ltd.)
What are the rules of communication for an offer?
Must be communicated to the offeree, it can be made to one person or the whole world, the offeree must have knowledge of the offer and terms must be certain (Guthing v Lynn)
What are some ways in which an offer can be terminated?
Refused or met with a counter offer, reasonable time for acceptance can lapse or be properly withdrawn by revocation
How must a unilateral offer be revocated?
Must be done in the same manner it originally was and it cannot be withdrawn whilst the offeree is performing the act
What are the rules on revocation?
Must be before the offer is accepted, must communicated the withdrawal to the offeree, can be done by a reliable third party and a long delay between offer and acceptance can be treated as being lapsed
What two things does acceptance need to be?
Unconditional and communicated
What is meant by unconditional?
There must be no attempt to change the offer, otherwise it will become a counter-offer and a new contract will be formed
What are the rules of communication and which case shows this?
Must be a positive act, silence is not enough (Felthouse v Bindley)
What forms can an offer be accepted in?
Any form such as written, verbal or a conduct, if a specific form is required it must be done in that was (Yates v Pulleyn)
What is the postal rule?
If post is decided as the method, acceptance occurs when the letter is posted, not when it is received, applies where letter is never received (Household Fire Insurance v Grant)
What are the rules surrounding instantaneous methods of acceptance?
Treated as effective when it is received, unlike the postal rule (Entores v Miles Far East)
What are the rules surrounding emails?
Not yet entirely clear, Thomas v BPE, like to be treated as instantaneous, meaning it is accepted once received
