agreement Flashcards
offer, acceptance, certainty, contract type
what are the 4 requirements for a binding contract?
1- offer
2- acceptance
3- intention to create legal relations
4- consideration
how is intention evident when making an offer?
You look at what he said and done not the man’s actual intent in mind
What elements make an offer valid?
- certainty of offer
- intention to be bound
- clear
define a bilateral contract
where both parties assume an obligation to each other
define a unilateral contract
Where one party makes an offer in terms which call for an act to be performed by one or more other parties
- only person making offer assume an obligation
What case was held to be a unilateral contract instead of an invitation to treat?
Carlill v Carbolic Smoke Ball
What is an invitation to treat?
First step in negotiations, which may or may not lead to a firm offer by one of the parties.
What are some (4) examples of invitations to treat?
- advertisement
- Display of goods for sale (including websites)
- Invitations to tender
- Auction sales
When is an offer accepted in an auction sale?
Acceptance of the bidder’s offer will be indicated by the fall of the auctioneer’s hammer.
What is an auction sale without reserve?
Where the seller promises to sell to
the highest bidder, whatever that bid turns out to be. (unilateral contract)
In which 3 ways can an offer be terminated?
- rejection
- lapse
- revocation
Define rejection of an offer.
Where the offeree rejects an offer, it cannot be accepted unless another offer with the same conditions is made.
- counter-offers are a form of rejection
How does lapse terminate an offer?
- by time passing (reasonable time)
- by death of either party (if offeree is unaware of offeror’s death, it probably will not lapse)
How is an offer terminated by revocation?
- offeror may withdraw their offer, (revocation must reach offeree)
- once offer is accepted, offeree cannot revoke acceptance
What are the rules of a unilateral contract being revoked?
- can be revoked unless offeree has partly performed condition
- implied obligation not to revoke once party has partly performed
What are the 4 aspects of communicating unequivocal acceptance to an offer?
1- acceptance must be in response to an offer
2- acceptance must be unqualified (counter-offer / further info req)
3- may be necessary to follow prescribed mode of acceptance
4- acceptance must be communicated
What does it mean to follow a prescribed mode of acceptance?
Where the offeror may express a chosen mode of acceptance as a term
- they may make it mandatory
- unless made mandatory, another form of acceptance is not any less advantageous.
How can the prescribed mode be made mandatory?
- offeror prescribes a mode of acceptance
- it excludes all other options and is mandatory
When is an offer deemed accepted by post?
The moment the letter of acceptance is properly posted
- Adams v Lindsell case
- still applies even where delayed or lost in post
In what circumstances (4) does the acceptance via postal rule not apply?
1- if not contemplated post would be used
2- to letters revoking offers
3- if incorrectly addressed
4- if disapplied by offeror
What is the rule for communication by instantaneous means (telephone, email)?
acceptance takes place at the moment the acceptance is received by the offeror
