Chapter 39 - Offer and Invitation to treat Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

What is an invitation to treat?

A

An indication that one person is willing to negotiate a contract with another, but that they are not yet willing to make a legal offer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Describe the difference between offer and an invitation to treat

A

-Invitation to treat is not an offer
-words used such as ‘may be able to’ or ‘might be prepared to’ can be looked at to decide whether it is an offer or invitation.
-Gibson v Manchester City Council - Not an offer as council used words ‘may be prepared to’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Examples of invitations to treat

A

-Advertisements cannot be an offer, only invitation to treat, Partridge v Crittenden
-Goods in a shop window - shop has no obligation to sell to the customer, Fisher v Bell
-Goods at an auction - Each lot is an invitation to treat; offer is made by the bidder, Pharmaceutical society of Great Britain v Boots Cash Chemists
-Request information and a reply to the request - Harvey v Facey

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Bilateral and unilateral contract

A

Bilateral contract - This contract requires both offeror and offeree to do something. Both parties have obligations
Unilateral contract - There is an agreement to pay in exchange for performance, if the potential performer chooses to act. There is no obligation to perform the act. Carlill v Carbolic Smoke Ball Co.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Who can make the offer?

A

-Offer can be made by an individual, partnership, limited company or other organisation.
-Also can be made through a notice or machine, Thornton v Shoe Lane Parking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

To whom can the offer be made to?

A

-A named individual, Gibson v Manchester City Council
-A group of people
-The world at large, Carlill v Carbolic Smoke Ball Co.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How to communicate an offer?

A

-Offer comes into existence when it is communicated to the offeree
-Communication requires the offeree to know of the existence of the offer, Taylor v Laird
-Exact timing can be critical, Stevenson v McLean

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How can an offer end?

A

-Revocation - Routledge v Grant
-Rejection - Can say No or Make a counter offer as seen in Hyde v Wrench
-Lapse of time- Ramsgate Victoria Hotel v Montefire
-Death
-Acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How to accept an offer

A

Can be accepted by any effective form of communication
-Cannot be by silence, Felthouse v Bindley
-Can be required to accept in a specific way, Yates v Pulleyn
-Requirement of signature can cause issues where negotiations are conducted electronically, Neocleous v Rees
-Issues with phone calls as lack of evidence, Wells v Devani

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Intention to create legal relations

A

The parties to a contract expressly or impliedly agree that the contract is legally binding and therefore enforceable in court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Social and Domestic Arrangements

A

These are presumed not to be legally binding, but the presumption can be rebutted.
-Balfour v Balfour - Decided to be domestic as agreement was made under different circumstances to current
-Merritt v Merritt- Where husband and wife are already separated, an agreement may be taken as intended to be legally binding
-Court can examine the real purpose of an arrangement- Jones v Padavatton
-If money changed hands, more of a business arrangement and therefore legally binding, Simpkin’s v Pays
-If parties put financial security at risk for an agreement then it must have been intended as legally binding, Parker v Clarke

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Commercial agreements

A

Commercial agreements are presumed to be legally binding
-“gentlmens agreement” is enough for a legally binding agreement to be rebutted, Jones v Vernons Pools
-Burden of proof in a business situation is on the person seeking to establish there is no legal intention- Edwards v Skyways Ltd

How well did you know this?
1
Not at all
2
3
4
5
Perfectly