CONTRACT LAW- CHAPTER 18 O And A Flashcards
Define an offer
A proposal showing willingness to contact on firm and definite terms
Define an offeror
Person who makes the offer
Define an offeree
Person to whom the offer is made
What must an offer be?
Definite in terms. Words like ‘may be able to’ show an invitation rather than an offer Gibson 1979
What are the elements to a contract
Offer-acceptance-consideration-privity-intention to create legal relations
Define invitation to treat
An indication that one person is willing to negotiate a contract with another but he or she isn’t yet willing to make a legal offer
Can an advert be an offer
Usually not Partridge 1968 but if it has a clear indication of it being an offer and it’s a unilateral contract then if the offeree does the precise thing promised by offeror then yes contract Carbolic smoke ball 1893
Are good in a shop window or shelf an offer
No an invitation to treat, becomes an offer when you present the item to a checkout operator or self scan Fisher 1961/Boots 1953. Otherwise seller obliged to sell it to you
How do lots at an auction work in regards to contract
Bidder makes an offer that the auctioneer accepts by banging a hammer. Means lots available at an auction are an invitation to treat until hammer slammed Wright 1972
Who can make an offer
Anyone, an individual, companies etc. Thornton 1971 (can be made by a machine or a notice) employer can make on behalf of a company
Who can an offer be made to
Any named individual or the world at large like the carbolic case
How long does an offer last
Can only be accepted while it’s open. Once ended can’t be accepted or form contract basis. Comes into existence when communicated to offeree so offeree is aware of the offer Laird 1856. Timing is critical McLean 1880
Give the five ways a contract can end
Revocation, rejection, lapse of time, death or acceptance
Define revocation
Can be withdrawn at any time. Offeror needs to communicate this to the offeree Routledge 1828. Can have implications if the offer is to the whole world so can end in three ways, setting time limit, expiring in reasonable time and publishing revocation of the offer same way offer was made. An offeree can make a separate contract to offeror to keep offer open to them. Collateral contract which can be enforced if offeror refuses to sell in period or to someone else. Communication of revocation needs to be reliable not in person but can be Dodds 1876
Define rejection
An offer ends if the offer is rejected using a ‘no’. If a counter offer is made the offeree becomes the offeror Hyde 1846