agreement Flashcards
what cases can be used to show what constitutes an offer?
Storer v Manchester City Council - 1974
Gibson v MCC - 1979
what is an offer
a promise by one party to enter into a contract on a particular set of terms, as soon as the other party accepts.
whats an invitation to treat?
invitation to open negotiations and willing to receive offers. cannot be accepted and does not include a promise to be bound.
Offer- Valid
Storer
Storer- issues
whether contract had been concluded even though date on which the claimant became a purchaser rather than a tenant was still to be determined.
storer- outcome
contract was complete, based on what words or actions may objectively mean, the defendant had made clear by their conduct and language that they intended to be bound upon the acceptance of the offer despite the fact that some terms remained to be agreed
Gibson - what year
1979
what does Gibson show?
Invitation to treat
facts- gibson
tenant of council house, response to application - “ The [council] may be prepared to sell you the house at the purchase price…’, and providing details of the mortgage.”
invited claimant to make a formal offer.
issues- gibson
whether defendants letter was construed as an offer or ITT
Outcome- Gibson
was no concluded contract and the defendant was not legally bound to sell the property, as the council’s letter did not state the price and was not an offer but an invitation to treat.
examples of ITT
adverts, brochures, price lists
pharmaceutical society of GB v boots cash chemists - 1953
“display of goods on shelf is an ITT. customer would make an offer to buy items at cash desk which could be accepted or rejected.
how can you extinguish an offer - 3 things
counter offers - destroys the original offer.
revocation- can be withdrawn before acceptance. (communiciated, not postal)
lapse of time- too long inbetween
death- if offeree is aware, offer lapses
unilateral offer
no obligation for the offeree to perform.
