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Contract Law > Agreement (Offer & Acceptance) > Flashcards

Agreement (Offer & Acceptance) Flashcards

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1
Q

Define: Offer

A

“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 to whom it is addressed” (Treitel)

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2
Q

What are the components of a valid offer?

A

An offer must be:

  1. Clear and Certain
  2. Communicated to the offeree
  3. Not rejected, revoked or lapsed
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3
Q

What are the components of a valid acceptance?

A

Acceptance must be:

  1. A mirror image of the offer
  2. Made by the offeree in response to the offer
  3. Communicated to the offeror
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4
Q

Case authority: Language of “may” is not sufficiently clear and certain.

A

Gibson v Manchester City Council

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5
Q

Case authority: Language of “will” is sufficiently clear and certain.

A

Storer v Manchester City Council

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6
Q

Define: Invitation to Treat

A

An ITT is the preliminary stage in negotiations.

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7
Q

Case authority: An advert is generally an ITT not an offer.

A

Partridge v Crittenden

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8
Q

Case authority: A display of goods is an ITT

A

Fisher v Bell

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9
Q

Case authority: Placing goods on supermarket shelves is also an ITT

A

Pharmaceutical Society of GB v Boots Cash Chemists

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10
Q

Case authority: Where an advert is sufficiently clear and certain to indicate intention to be bound, and is from the product’s manufacturer (with theoretically unlimited supply), an advert may constitute an offer

A

Granger v Gough

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11
Q

Case authority: An advert couched in certain language, may be an offer where it amounts to a unilateral offer.

A

Carlill v Carbolic Smoke Ball Co.

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12
Q

Case authority: Invitations to Tender are not offers but simply invite others to make offers.

A

Spencer v Harding

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13
Q

Case authority: Offers are made by bidders, offers are only accepted when the auctioneers hammer falls. Items may be withdrawn any time up until acceptance.

A

Payne v Cave

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14
Q

Case authority: Items put up for auction “without reserve” constitute unilateral offers. (NB: Unilateral offer is with the auctioneer not the seller - claimant only entitled to damages not specific performance)

A

Barry v Davies

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15
Q

Case authority: An offer must be communicated in one of 3 ways, (1) Orally, (2) in writing, or (3) by conduct.

A

Taylor v Laird

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16
Q

An offer can be terminated by:

A
  1. Rejection
  2. Revocation
  3. Lapse
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17
Q

Case authority: A counter offer is a rejection followed by a new offer. The counter offer terminates the original offer.

A

Hyde v Wrench

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18
Q

Case authority: Requests for further information are distinct from counter offers - the original offer remains open.

A

Stevenson, Jacques & Co v McLean

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19
Q

Case authority: Revocation can happen any time before acceptance, but must be communicated.

A

Dickenson v Dodds

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20
Q

Case authority: Revocation may be communicated by a 3rd party.

A

Dickenson v Dodds

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21
Q

Case authority: Unilateral offer may be revoked any time before complete performance.

A

GNR v Witham

22
Q

Case authority: If one has begun to act on the terms of a unilateral offer, the offeree must be allowed time to complete performance

A

Errington v Errington & Woods

23
Q

An offer may lapse due to:

A
  1. Passage of time
  2. Death
  3. Non-fulfilment of a condition (Financings v Stimson)
24
Q

Case authority: Acceptance must be on the exact same terms as the offer. (Mirror image rule)

A

Hyde v Wrench

25
Q

Case authority: Acceptance must be made by an offeree.

A

Boulton v Jones

26
Q

Case authority: Acceptance must be in response to an offer / while being aware of an offer

A

R v Clarke

27
Q

Case authority: Motive for acceptance is irrelevant

A

Williams v Carwardine

28
Q

Case authority: General rule - an offer must be communicated

A

Felthouse v Bindley

29
Q

Case authority: Acceptance can be communicated by a 3rd party authorised by the offeree

A

Powell v Lee

30
Q

Case authority: Acceptance by conduct is possible

A

Brogden v Metropolitan Railway

31
Q

Case authority: In unilateral offers, performance of the act constitutes acceptance

A

Carlill v Carbolic Smoke Ball Co

32
Q

Case authority: Where failure to communicate acceptance is the result of the offeror’s fault, they are estopped from denying receipt.

A

Entores v Miles Far East

33
Q

Case authority: For acceptance sent by post, acceptance occurs at the moment the letter is properly posted.

A

Adams v Lindsell

34
Q

Case authority: Offeror cannot revoke their offer after the acceptance has been posted, even if he is unaware of its posting.

A

Byrne v Van Tienhoven

35
Q

Case authority: Letter must be properly posted - in a Royal Mail postbox or given to an employee authorised to receive letters.

A

Re London and Northern Bank, ex p Jones

36
Q

Case authority: Acceptance is valid, even if the letter is lost or destroyed in the post

A

Household Fire and Carriage Accident Insurance Co v Grant

37
Q

Case authority: If the letter has been incorrectly addressed then acceptance is only valid from the moment it arrives.

A

Getreide-Import Gesellschaft v Contimar

38
Q

Case authority: Postal rule does not apply where it is not reasonable to use the post (e.g. A postal strike or where there is an implied demand for speed)

A

Henthorn v Fraser

39
Q

Case authority: The postal rule does not apply where its application would cause “manifest inconvenience and absurdity”

A

Hollwell Securities v Hughes

40
Q

Case authority: Postal rule may be ousted by specifying that the acceptance will not bind until it arrives

A

Holwell Securities v Hughes

41
Q

Case authority: With instantaneous means of communication, acceptance occurs when the communication is received.

A

Encores v Miles Far East Corporation

42
Q

Case authority: If acceptance is received within office hours but the offeror does not read it, that still counts as communication as it was the offeror’s fault.

A

The Brimnes

43
Q

Case authority: When defining what is meant by “office hours” the context of the parties’ negotiations is relevant.

A

Thomas v BPE Solicitors

44
Q

Case authority: If acceptance is received outside of office hours, then it counts as having been received at the beginning of the next working day

A

Mondial Shipping BV v Astarte Shipping

45
Q

Case authority: Mode of acceptance may be prescribed if it is explicitly mandatory (e.g. Fax only), otherwise any equally advantageous means is acceptable.

A

Manchester Diocesian Council for Education v Commercial and General Investments

46
Q

Case authority: If the prescribed means of acceptance is for the benefit of the offeree then the offeree may waive that requirement

A

Yates Building Co v Pulleyn

47
Q

Case authority: There can only be a contract where there is mutually communicated intention by both parties to enter into legal relations.

A

Rose & Frank v Crompton Bros

48
Q

Case authority: There is a presumption that ICLR always exists in commercial arrangements.

A

Bunn & Bunn v Rees & Parker

49
Q

Case authority: There is no presumption of ICLR in social or domestic arrangements

A

Balfour v Balfour

50
Q

What are the 3 essential elements of any legally binding contract?

A
  1. Consideration
  2. Intention to Create Legal Relations
  3. Agreement (Offer + Acceptance)

Contract Law (2 decks)

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