Chapter 3: Offer and acceptance Flashcards
What is a contract?
A contract is defined as
an agreement
supported by consideration from both parties
and made with intention to be legally binding
by parties who have the legal capacity to make such an agreement
What contracts needs to be in writing?
Share and land transfers and consumer credit contracts
What does a void contract mean
no contract exists
example : restraint of trade
what does voidable contracts mean
valid contract but one party can avoid the contract
examples : contracts with minors for the supply of non-necessaries
unenforceable contract
valid contract but one party cannot force the other to complete the agreement, e.g because of a lack of written evidence
Gratuitious promise
enforceable if they are via a deed
What is an offer
An expression of willingness to be bound on certain terms
must be certain
not vague
may be conditional
time limit for acceptance
What is an agreement
Offer + acceptance
terminating offers
Rejection
Conditional acceptance
lapse of time
death of offeror or offeree, unless accepts in ignorance of death
Offeree failing to comply with all the terms of the offer
Counter offer
Revocation (withdrawal of an offer)
Effective if communicated by offeror or a reliable third party before acceptance
Invitation to treat
Inviting another to make an offer
Examples include:
Goods on supermarket shelf
Goods in shop window
Adverts in newspapers and shop windows
Auction notices and auctions
Prospectus
Acceptance
Unconditional assent to all the terms of an offer
When is a fax formed and accepted
The contract is formed when and where the fax of the acceptance is received
Exceptions to the communication rule
The postal rule
1) Dealing in post
2) not overridden
Contracts can be deemed accepted from moment of posting by the offeree
Exceptions to the communication rule
Unilateral or ‘reward type’ contract
Action consitutes acceptance in unliteral or reward type contracts
Communication is expressively or impliedly waived
