Agreement (Offers)

Question 1

What is an offer?

Answer 1

A statement that someone is willing to contract on firm and definite terms

Question 2

Offeror

Answer 2

The person who is making the offer

Question 3

Offeree

Answer 3

Person whom the offer is made to

Question 4

What are the two roles of offers?

Answer 4

• Must be ‘definite’ - must really mean to be bound by it
• Must be ‘certain’ - what exactly is being offered

Question 5

Gibson v Manchester City Council

Answer 5

• Letter wasn’t an offer because it stated ‘if you would like’ which doesn’t show a willingness of definite terms. Therefore, wasn’t an offer but an invitation to treat.

Question 6

Partridge v Crittenden

Answer 6

• Prosecuted for offering a sale of wild birds. He was not guilty as the advertisement was not an offer but an invitation to treat. Any offer leading to a contract would be made by the person who is responding.

Question 7

Advertisements may be an offer in a unilateral contract

Answer 7

This means that a firm offer is made to a specified person (whoever sees the advert). The offeree needs to perform the act required by the offer and then the contract exists.

Question 8

Most contracts are bilateral

Answer 8

One party makes an offer to another known party who then must communicate his/her acceptance.

Question 9

Carlill v Carbolic Smoke Ball Co

Answer 9

• Company advertised medicine. Stated that “if someone took the medicine and still got the flu, they’d give them £100’. C got the flu and court awarded her the money.
• Unilateral offer as it could be accepted by anyone.

Question 10

Fisher v Bell

Answer 10

• Shopkeeper displayed a flick knife with a price tag in his shop window.
• Invitation to treat so the knife had not been offered for sale, not guilty.

Question 11

British Car Auctions v Wright

Answer 11

• Auctioneers were prosecuted for wanting to sell an unfit vehicle.
• Prosecution failed as there was no offer.

Question 12

Harvey v Facey

Answer 12

• Harvey tried to buy a farm for the lowest price after asking how much this would be.
• Reply was merely a reply to the request so not an offer.

Question 13

When does an offer come into existence?

Answer 13

When it is communicated to the offeree.

Question 14

Taylor v Laird

Answer 14

• Gave up captaincy to work as a crew member and got no wages. Ship owner had no communication of his offer to work as an ordinary crew member.
• No contract as the ship owner didn’t have an idea.

Question 15

How can an offer be ended?

Answer 15

• Revocation
• Rejection or counter offer
• Lapse of time

Question 16

Revocation - Routledge v Grant

Answer 16

• Grant offered house for sale, offer to remain open for two weeks. He no longer wished to sell the house which was an effective revocation of the offer.
• Offer could no longer be accepted as it had ended (been revoked)

Question 17

Rejection - Hyde v Wrench

Answer 17

• Wrench offered to sell his farm for £1000 to Hyde. Hyde replied to £950. Wrench rejected the counter offer. Hyde then accepted the £1000.
• Counter offer ended Wrench’s original offer, Hyde could not accepted it - Wrench could have accepted Hyde’s offer of £1000.

Question 18

Lapse of time - Ramsgate Victoria Hotel v Montefiore

Answer 18

• C offered to buy shares at a fixed price in the hotel. Offer was accepted but he no longer wanted them as the share price had fallen; he refused to pay it.
• There was a long day between the offer and the acceptance meant the offer had lapsed.