(BLUE) Offer and Acceptance Flashcards
Who is the offeror and who is the offeree?
The offeror is the person making the offer.
The offeree is the person who receives the offer.
What must there be for a contract?
Agreement, consideration and intention for legal relations.
What is an offer?
A clear and firm indication of terms to form an agreement.
What is an invitation to treat?
An indication of what terms might be agreeable.
What happened in Gibson v MCC?
The Council did not have to sell the house because their wording was not clear of firm, making it an invitation to treat not an offer. Gibson made the offer when he completed the application form but the Council did not have to accept this offer. They received an offer and chose not to accept it.
Which case says that shop displays in windows are only invitations to treat?
Fisher v Bell
Which case says that shop displays on shelves are only invitations to treat?
PSGB v Boots
Which case says that written advertisements are only invitations to treat?
Partridge v Crittenden
Which case had an advertisement that was so clear it amounted to an offer?
Carlill v Carbolic Smoke Ball Co. The advertisement was so clear about giving £100 to anyone who got the flu that it amounted to an offer (it was also a unilateral contract).
What did the case of Harvey v Facey say?
Responses to requests for further information are not offers.
What is a bilateral contract?
Two way obligation. Both parties are obliged to perform their side of the contract.
What is a unilateral contract?
A one way obligation. Only one party needs to deliver on the contract but no other person is forced to perform the contract. Sometimes called ‘open offers’, ‘open contracts’ or ‘offers to the world’. For example, contests or rewards.
How can an offer end?
- Acceptance (turns the offer into an agreement)
- Rejection (offer is ended if it is rejected)
- Death of the offeror
- Counter offer
- Lapse of time
- Withdrawal/ revocation
How can death end an offer?
If the offeree knows the offeror has died, the offer dies with them. If the offeree doesn’t know the offeror has died, the offer is still capable of being accepted unless a personal service is involved.
How does a counter offer end an offer?
If an offeree wants to accept the offer but change a term in it, this will be a counter offer. This ends the original offer and makes a new one so the original offer can’t be accepted unless both parties want to- Hyde v Wrench.