Contract Law: Offers Flashcards
Offeror
Person making the offer
Offeree
Person to whom an offer is made
Offer comes into existence
Takes effect when communicated, can be spoken or written
Gibson v Manchester City Council: Phrases such as ‘might be prepared’ is not an offer.
Who can make an offer
- Individual
- Company
- Employee
- Machine (Thornton v Shoe Lane Parking).
An offer can be made to:
- Individual
- Group of people
- Organization
- World at large
Unilateral contract
Made to the whole world at large
Bilateral
Made to one person or group
Invitation to treat (ITT)
An ITT is not an offer and therefore cannot be a contract, indicates a willingness to start negotiations
ITT types
- Shop displays
- Advertisements
- Auctions
- Machines
ITT: shop display
Fisher v Bell: Window display is an invitation to treat
ITT: Advertisement
Carlill v Carbolic Smoke Ball Company: unilateral offer in this case
ITT: Auctions s.57
British Car Auctions v Wright: prosecuted for selling an unfit vehicle, however it was an ITT meaning there was no charges.
ITT: Machines
Thornton v Shoe Lane Parking: Ticket machine can constitute an offer.
How long does an offer last
Only can be accepted while it is open
5 ways an offer can end
- Revocation
- Rejection
- Lapse of time
- Death
- Acceptance
Revocation
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).
Rejection
If the offeree rejects the offer, it is extinguished, must be communicated (Hyde v Wrench).
Lapse of time
An offer can be made for a fixed period of time, if no time is given the offer will expire after a reasonable time.
Death
Offeror dies: acceptance can still take place until the offeree learns of the death
Offeree dies: Offer ends
Acceptance
Once an offer has been accepted, there is an agreement and the offer comes to an end.
