Chapter 24- Offer and Acceptance Flashcards
what are ways in which an offer can be made
- written
- orally
- implied
- expressed or implied promise
For an offer to be made it must be:
- Clear
- Precise
- Capable of acceptance
Give a case example of how words can affect whether an offer was made or not
Harvey v Facey
- The sellers reply was merely a statement of price
- most offers made are questions requiring an answer of acceptance or rejection
What refers to an invitation to treat
This is a proposition indicating a willingness to consider offers made by others
OR
invitations to enter into negotiations
the 4 most commonly occurring situations are
- Adverts
- display of goods for sale
- mere statement of prices
- auction sales
How should communication of offers be carried out
Once the proposition has been CONFIRMED as an offer and not invitation to treat, this must be communicated to the offeree. If the offeree is unaware of the offer, they won’t be able to accept to reject it.
What is a counter offer
This is when the offeree rejects the original offer and instead changes its terms, where a new contract will be formed.
What are the key principles to revocation
- The revocation MUST be communicated to the offeree
- Communication can also be made by a reliable third party
- A unilateral offer cannot be withdrawn while the offeree is performing.
state the situations that can result to the termination of an offer
- Lapse of time
- Death of one of the parties (Particularly the dead of the offeree)
- Failure of a condition precedence : an offer to buy goods implies that they will be in the same state of condition from offer to acceptance.
Define Acceptance
This is the positive unqualified confirmation of all the terms in the contract
what are 4 essential points to consider when dealing with acceptance
- whether the acceptance corresponds with the rules of acceptance
- Whether it is an acceptance or a counter offer
- 3.Whether it is an acceptance or a response/ request
- Whether it has been communicated correctly
Define the postal rule
Acceptance by post is effected as soon as the letter is validly posted
When can the postal Rule NOT apply
- When postal acceptance isn’t specified by the offeror or when’re postal communication isn’t reasonable in the circumstances
What refers to “battle of the forms”
Where both parties have a standard form contract, two forms of contract exist.
How do the courts deal with “battle of the forms”
By using the “the last shot” principle which views communications about conditions in the contract that conflict in nature as constituting counter offers.
