Agreement & ICLR Flashcards
When is an offer made?
When it has the intention of becoming binding as soon as accepted by the other person
What is the difference between an offer and an invitation to treat?
Invitation to treat is inviting offers
What are some examples of invitations to treat?
Goods on display
Advertisement
Auctioneer inviting bids
Tenders
How can an offer be withdrawn?
Before acceptance, and with reasonable steps even if not everyone is aware
If there is no reserve on an auction, what is the obligation on the auctioneer?
Must accept the highest bid - failure to do so entitles bidder to remedy against auctioneer for damages only
What is the principle regarding unilateral offers from Errington v Errington/Soulsbury v Soulsbury?
There is an implied promise not to revoke the offer once aware acceptance had started
What is the definition of acceptance?
Unqualified expression of assent
What is the postal rule?
Acceptance is still effective even if letter is lost
What is required for the postal rule to be applicable?
- Reasonable to accept by post
- Properly stamped, addressed and posted
- Rule not excluded
What is the effect of a counter offer?
Implied rejection of initial offer
When can revocation occur?
Any time before acceptance, even if offeror promised to keep offer open for a certain period of time
What is the exception to revocation being available any time before acceptance?
If offeree gave some consideration in return for a promise to keep an offer open
If no time has been specified, when will an offer lapse?
After a reasonable time
What is the presumption regarding intention between commercial parties?
That there was an intention to create legal relations
What is the presumption regarding intention between family / friends?
There is a presumption of no intention to create legal relations - however, the more distant the relationship the weaker the presumption
