Contract Law Flashcards
What constitutes an offer?
An offer is a manifestation by the offeror of a willingness to be bound by the terms proposed to the person offered.
What is an invitation to treat?
An invitation to treat is an expression of willingness to negotiate with the other party to see whether agreement can be reached at some point.
What is the general rule surrounding goods displayed in stores or advertised in newspapers?
The general rule is that goods in stores or advertised in newspapers are invitations to treat.
What exception to the invitation to treat rule was established in Carhill v Carbolic Smoke Ball Co [1893] 1 QB 256?
The Court held that an advert was an offer because the company intended to be bound by the offer in the advert. This was a unilateral contract.
What is the general rule around timetables (for buses, trains ect)?
The general rule is that timetables are offers.
When does a passenger accept an offer when using a train?
Denton v Great Northern Railway Co [1856] 5 E & B 860 held that a contract is formed (offer is accepted) when the ticket is bought by the passenger.
When is an offer made in a car park?
In Thornton v Shoe Lane Parking [1971] 2 QB 163, the Court held that the signs telling the motorist the parking prices are actually offers. Offer is accepted when motorist enters the car park.
What is an invitation to tender?
Where an authority invites companies to bid for a particular service or project.
What is the general rule surrounding invitations to tender?
The general rule is that an invitation to tender is an invitation to treat.
Is there an obligation to sell to the person who submitted the highest tender?
No - Spencer v Harding (1870) - unless the advert expressly states that the highest tender would be accepted, there is no obligation to sell to the person submitting the highest tender.
