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
