Chapter 1 - Offer Flashcards
What is the parole evidence rule?
The parole evidence rule states that oral evidence will not be admitted in a court action to alter the agreement of a written contract
What are bilateral contracts
1) An offer made by an offeror to a known offer
2) Parties know each other as there is an exchange of promises
3) Upon offeree acceptance, a bilateral contract will be formed. Both parties will be bound by the contract.
What are Unilateral Contracts.
What is the case study for Unilateral Contracts
Unilateral contracts are made by an offeror to an unknown offer. Contract is open for anyone to accept it.
Offeror makes a conditional promise, offeree has no need to make a promise but will fulfil the condition of the promise.
Only after the offeree has fulfilled the offerror’s condition, both parties will enter into a unilateral contract.
Carlill V Carbolic - Case where Carbolic was the offeror and had offered anyone who took their product and followed its exact steps a sum of 100 pounds if they still contracted influenza.
What are invitation to treat?
What is the key difference between invitation to treat and unilateral contracts
Generally advertisement, catalogues and its price lists are regarded as invitation to treat rather than an offer.
An invitation to treat is considered an invitation to commence negotiations. Basically an invitation to make an offer.
The key difference would be that in unilateral contracts, the offeror has intentions to be bound by the terms stated.
But for invitation to treat, both parties generally do not intend to be legally bound to the terms, Invitation to treat is used to begin negotiations to make an offer.
Are advertisements in shops or online stores unilateral contracts or invitation to treat
Depending on the intention of the offeror. For example, if advertisements are unilateral contracts, nobody would want to pick up an item because that would indicate a legal interest in being bound by the item.
Describe the concept of provision of information
A mere response to a request for information does not constitute an offer. The party responding has no intentions to get into an agreement upon providing the information
Case on Harvey V Facey
