Contract Law: Offer and Acceptance Flashcards
What is an offer?
An expressions of ones party’s willingness to contract on certain terms made with the intention that it will be legally binding upon acceptance.
What is the offerer?
The person making the offer to the offeree.
What is the offeree?
The person accepting an offer.
What is an invitation to treat?
An indication that one person is willing to negotiate a contract with another, but that he or she is not yet willing to make a legal offer.
What is a unilateral?
An agreement to pay in exchange for performance, if the potential performer chooses to act. there is no obligation to perform the act.
What is a bilateral?
Requires both the offeror and offeree to do something. Both parties have obligations.
What is an example case that defines an offer?
Gibson v Manchester City council 1979 held the letter as an invitation because it is not a firm and definite proposal.
What is an invitation to treat?
Where one person is willing to negotiate a contract with another, but is not yet willing to make a legally binding offer.
What is an example case that illustrates an invitation to treat?
Fisher v Bell (1961)
Pharmaceutical Society of GB v Boots (1953)
What is communication of the offer?
The offeror must communicate the offer to the offeree as shown in Taylor v Laird (1856).
The withdrawal of an offer must be communicated and the terms of the offer must not be vague as shown in Guthing v Lynn (1831).
How long does an offer last?
The offer can only be accepted during the time frame in which it is open.
An offer can be terminated in the following ways…
Acceptance
Revocation (cancelled)
Rejection
Lapse of time
Death
How is an offer accepted?
Acceptance can be in any form as long as it is communicated.
Acceptance must be unconditional so of the offeree tries to vary the terms of the offer is terminated.
When does acceptance take place?
Acceptance by conduct as shown in Reveille independent LLC V Anotech 2016 where the offeror carried out the terms of the contract but did not sign so the counter offer had been accepted by conduct.
Acceptance by use of post - letter must be properly addressed and stamped, the offeree must prove that the letter was posted.
Electronic methods of communication.
