Contract - Offer and Acceptance Flashcards
Bilateral Offer
Mutual exchange of promises by both parites
Unilateral Offer
A promise to do something in return for an act
Gibson v Manchester City
Offer has to be expressed clearly through language; cannot be tentative
- Offerree said ‘they may’ - did not constitute to an offer
Storer v Manchester CC
An offer was made due to the clear language used throughout the negotiation process
Fisher v Bell
A shop window display is usually an invitation to treat
- Display of the flick knife was not an offer so the Offensive Weapons Act was not breached
PSG v Boots
Offer only happens when you get to the cashier; display of goods on shelves is not an offer
Leftkowitz v Great Minneapolis Surplus Store
An advert can be considered a valid offer if it includes clear and defined terms
Invitation to Tender
Process by which qualified suppliers are invited to submit bids to provide a specific service or supply specified goods
Spencer v Harding
An invitation to tender is normally an invitation to treat, not offer
- Spencer sent in the highest offer but Harding did not have to accept it as they did not state “we will sell to the highest bidder”
Harvela Investments v Royal Trust Co of Canada
Referential bids cannot form the basis of a valid offer
- e.g. you can’t bid saying “i will pay x amount of money more than your highest offer”
Blackpool + Fyde Aero Club v Blackpool BC
“if C submits a conforming tender before the deadline he is entitled, … to be sure that his tender will after the deadline will be opened and considered”
Dickinson v Dodds
Revocation of an offer must be communicated and can be revoked any time before there is acceptance
Errington v Errington
Withdrawal of an offer in a unilateral contract - if one party has started to perform part of the deal you cannot revoke the offer
How do we know an offer has been accepted?
Through communication
Felthouse v Bindley
Acceptance can be by word; silence does not amount to acceptance
Brogden v Metropolitan Railway
Acceptance by conduct; binding contract if there is any performance without any objection
Manchester Diocesan
You need to specify a method of acceptance if it is the only one you need
Hyde v Wrench
Acceptance has to mirror the offer; counteroffers kill the original offer
Butler Machine Tool Ltd
You cannot respond to an offer with your own terms
RTS Flexible v Mueller
whether there is a binding contract depends on what was communicated between the parties whether by word or conduct, not by the subjective state of mind
Smith v Hughes
Objectivity test - if the reasonable man would think a person was accepting another’s offer, that offer will be deemed accepted
Postal Rule
- As soon as a letter is put into post that constitutes acceptance (Adam v Lindsell)
- Acceptance is still valid, even if the letter is lost or destroyed in the post (Household Fire v Grant)
Henthorn v Fraser
- Revocation by post only takes place when it arrives with the other party
- If it is not reasonable to use the post, then the postal rule will not apply (e.g. postal strikes)
Acceptance by Instantaneous Communications
Postal rule does not apply; receipt is required
Entores
“Contract is only complete when acceptance is received”
Brinkibon v Stahag Stahl
Acceptance should take effect when the offeree might reasonably expect it to have been communicated to the offeror
- can be likened to a telephone call - as soon as you hear the acceptance that is when the acceptance takes place
Auctions
Offering items for sale at auctions are invitations to treat. Bids by potential purchasers are offers which can be accepted by the fall of the auctioneer’s hammer
Walow v Harrison
Auctioneer is the agent acting on behalf of the person contracting; bidding is the acceptance
