Contract Law: Offers Flashcards

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1
Q

Offeror

A

Person making the offer

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2
Q

Offeree

A

Person to whom an offer is made

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3
Q

Offer comes into existence

A

Takes effect when communicated, can be spoken or written
Gibson v Manchester City Council: Phrases such as ‘might be prepared’ is not an offer.

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4
Q

Who can make an offer

A
  • Individual
  • Company
  • Employee
  • Machine (Thornton v Shoe Lane Parking).
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5
Q

An offer can be made to:

A
  • Individual
  • Group of people
  • Organization
  • World at large
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6
Q

Unilateral contract

A

Made to the whole world at large

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7
Q

Bilateral

A

Made to one person or group

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8
Q

Invitation to treat (ITT)

A

An ITT is not an offer and therefore cannot be a contract, indicates a willingness to start negotiations

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9
Q

ITT types

A
  • Shop displays
  • Advertisements
  • Auctions
  • Machines
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10
Q

ITT: shop display

A

Fisher v Bell: Window display is an invitation to treat

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11
Q

ITT: Advertisement

A

Carlill v Carbolic Smoke Ball Company: unilateral offer in this case

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12
Q

ITT: Auctions s.57

A

British Car Auctions v Wright: prosecuted for selling an unfit vehicle, however it was an ITT meaning there was no charges.

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13
Q

ITT: Machines

A

Thornton v Shoe Lane Parking: Ticket machine can constitute an offer.

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14
Q

How long does an offer last

A

Only can be accepted while it is open

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15
Q

5 ways an offer can end

A
  • Revocation
  • Rejection
  • Lapse of time
  • Death
  • Acceptance
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16
Q

Revocation

A

In a bilateral contract, an offer can be revoked at any time before acceptance, but must be communicated with the offeree prior. (Routledge v Grant).

17
Q

Rejection

A

If the offeree rejects the offer, it is extinguished, must be communicated (Hyde v Wrench).

18
Q

Lapse of time

A

An offer can be made for a fixed period of time, if no time is given the offer will expire after a reasonable time.

19
Q

Death

A

Offeror dies: acceptance can still take place until the offeree learns of the death
Offeree dies: Offer ends

20
Q

Acceptance

A

Once an offer has been accepted, there is an agreement and the offer comes to an end.