CONTRACT LAW 4 - Offer & Acceptance - INTRO VIDEO Flashcards
Definition of offeror. (1)
The person making the offer.
Definition of offeree. (1)
The person to whom the offer is made.
What is bilateral contract? (3)
The most common contract. Each party assumes an obligation to the other party by making a promise to do something, such as to sell an item to the other party in exchange for a payment.
What is a unilateral contract? (3)
Less common. One party makes an offer or proposal in term which call for an act to be performed by one or more other parties. Only actual performance of the required act will constitute acceptance.
What are the seven steps of the formation of a bilateral contract? (7)
- Is the advert/letter/notice/agreement an offer on an invitation to treat?
- If an offer, is there a counter-offer or a request for further information?
- Is the acceptance in response to the offer?
- Is the acceptance a mirror image (unqualified) ?
- Is the acceptance made using a valid mode?
- Is the acceptance communicated?
- At the point of acceptance is the offer still open?
When is a posted acceptance effective? (1)
Upon posting.
When does the postal rule not apply? (5)
If the letter was not properly posted, manifest inconvenience or absurdity, it was not contemplated that post would be used, offeree misaddressed the letter and if the postal rule has been ousted.
What does it mean if acceptance is sent by instantaneous means? (1)
A contract is created when notice of acceptance is received by the offeror.
What happens if acceptance is not received? (3)
If the offeree is at fault = no contract
If the offeror is at fault = contract
If nobody at fault = no contract
What happens in a business context if acceptance is sent outside office hours? (2)
Acceptance is deemed to have been received first thing the next working day and the meaning of office hours depends on context.
