Agreement = Offer and Acceptance

Question 1

Requirements of a valid offer?

Answer 1

Clear and certain offer - If use the word ‘may’ probably wont be an offer
displaying intention to be bound - if use ‘will’
Unequivocal acceptance

Question 1

Courts approach to agreement?

Answer 1

• Court is not concerned with inward mental intent of parties but what a REASONABLE PERSON would say was the intention of the parties considering ALL the circumstances

Question 2

Different types of offers?

Answer 2

Bilateral - between two parties - obligations assumed by both
Unilateral - not mutual promises , offer is accepted by performance of act

Question 3

What is an invitation to treat?

Answer 3

First step in negotiations
1.Display of goods for sale
2.Invitation to tender - EXCEPT where contains an undertaking to accept highest bid
3.Auction sales - it completes by fall of the hammer, EXCEPTIONS auctions without reserve.

Question 4

Termination of an offer?

Answer 4

Rejection - counter offer rejects initial offer - DIFFERENT FROM REQUEST FOR INFO
Lapse of an offer by:
1. passage of time
2.Death of a party - if offerree knows offerror has died it lapses, death of offeree will cause offer to lapse
3. Revocation - only effective on actual notice reaching offeree, not time of posting. EXCEPTIONS - Where offeree has partly performed and is willing and able it will cause hardship

Question 5

Rules in relation to acceptance?

Answer 5

Acceptance must be in response to the offer
Must be unqualified
Prescribed mode of acceptance
Must be communicated - offeror may not stipulate silence is acceptance
Postal rule - is when it is posted
Instant methods - when it arrives on their server
Communication waived by act

Question 6

Test for certainty?

Answer 6

Objective test whether the parties have agreed on all the terms