Agreement: Offers Flashcards
What constitutes an Agreement in contract law?
An Agreement is formed when there is an Offer + Acceptance. Once the offer is accepted, it becomes legally binding.
How does Treitel define an Offer?
According to Treitel, an Offer is: “.. an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.” (Treitel, The Law of Contract)
What is an Invitation to Treat?
An Invitation to Treat is an indication that a party is willing to negotiate terms but is not legally obligated to accept any offers. It’s not an offer itself.
Are prizes in a magazine considered legal offers?
No, prizes in a magazine are considered an Invitation to Treat. The magazine owner is not legally obligated to sell the prize to anyone.
What case illustrates that goods on display are generally invitations to treat?
Fisher v Bell (1961) - The case held that displaying an item in a shop window is an invitation to treat, not an offer to sell.
Are goods on display offers or invitations to treat?
They are generally invitations to treat (Fisher v Bell (1961) - The case held that displaying an item in a shop window is an invitation to treat, not an offer to sell).
What is the exception to the rule for goods on display?
A display can be an offer if it clearly indicates the seller’s intention to be bound by the terms of the display, e.g., “Buy this chocolate for 50p and it’s yours.”
What does Partridge v Crittenden (1968) establish about advertisements?
Partridge v Crittenden (1968) established that advertisements are generally considered invitations to treat, not offers.
What is the case authority? Advertisments are generally considered invitations to treat, not offers.
Partridge v Crittenden (1968) established that advertisements are generally considered invitations to treat, not offers.
How does self-service affect contract formation according to Pharmaceutical Society of GB v Boots (1953)?
In a self-service store, the contract is formed when the customer pays at the checkout, not when the items are picked from the shelves.
What does an auction with reserve mean according to s57(2) Sale of Goods Act 1979?
An auction with reserve means the auctioneer is inviting offers. The bid is an offer that the auctioneer may accept or reject. The auction is not complete until the hammer falls.
When is a sale by auction considered complete?
A sale by auction is considered complete when the auctioneer’s hammer falls, marking the acceptance of the highest bid.
What is the significance of Barry v Davies (2000) in auctions without reserve?
Barry v Davies (2000) held that in an auction without reserve, the auctioneer makes a unilateral offer to accept the highest bid. If the auctioneer refuses to accept the highest bid, it constitutes a breach of contract.
What is the case authority? Auctions with reserve
[ s57(2) Sale of Goods Act 1979 ]
What is the case authority? Auctions without reserve.
[ Barry v Davies (t/a Heathcote Ball & Co) (2000) ]
What is the general rule for tenders according to Spencer v Harding (1870)?
Spencer v Harding (1870) established that tenders are offers. The party inviting tenders is not obligated to accept any of the bids.
When can an invitation to tender be considered an offer? (+case authority)
An invitation to tender may be considered an offer if it explicitly states that the highest or best bid will be accepted (Harvela Investments Ltd v Royal Trust Co of Canada Ltd 1986).
Under what condition can an invitation to tender be construed as a unilateral offer? (+case authority)
An invitation to tender can be construed as a unilateral offer if it indicates that bids properly submitted according to the invitation’s terms will be considered (Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council (1990)).
What is the significance of Wilkie v LPTB (1947) regarding timetables?
A timetable constitutes an offer, which is accepted by the passenger when they buy a ticket.
When is a contract formed according to Cockerton v Naviera Aznar SA (1960) in the context of timetables?
A contract is formed when the passenger receives the ticket.
What does Chitty (2018) state about menus in restaurants?
Menus are invitations to treat. A restaurant makes an offer when the customer orders, and then accepts the order.
How are vending machines and parking ticket machines treated in contract law according to Thornton v Shoe Lane Parking (1971)?
The display of goods/services is considered an offer. Acceptance occurs when the customer inserts money to complete the transaction.
What are the rules for revocation of an offer?
An offer may be revoked any time before acceptance (Routledge v Grant (1828)). Revocation takes effect only when communicated to the offeree (Byrne & Co v Van Tienhoven & Co (1880)) and can be communicated by a reliable third party (Dickinson v Dodds (1876)).
What is the impact of communication of revocation by telex according to The Brimnes (1975)?
Communication of withdrawal by telex is effective when it could be read, not when it is actually read.
What does Hyde v Wrench (1840) establish about counter-offers?
A counter-offer constitutes an implied rejection of the original offer, canceling it out.
When does an offer lapse according to Ramsgate Victoria Hotel Ltd v Montefiore (1865-66)?
An offer lapses after a specified period or condition, or after a reasonable time if none is specified.
