Contract - Responses to Offers Flashcards
What are the conditions of a contract?
Offer, Acceptance, Consideration, Intention to create legal relations
When is the offerer bound?
At acceptance.
What do counter-offers do?
Terminates original offer. Must distinguish between enquiry for further information and a counter-offer.
Until when can someone withdraw their offer?
Until acceptance. Uncommunicated withdrawal is not valid. Lapse of a ‘reasonable time’ can terminate offer.
In unilateral contracts, performing the condition is considered acceptance (conduct). But how much do they have to go?
Walk to York analogy! We can only require full performance if there is an implied obligation on offeror not to prevent completion.
What conditions are needed for acceptance?
Conduct/Communication, Knowledge of reward
Acceptance by conduct?
In unilateral, performance of stated condition is acceptance, in bilateral, if they start performing terms, no communication necessary.
Acceptance by silence?
The offeror cannot decide that silence = acceptance but offeree can.
Can contract limit types of acceptance?
Yes, court will assume practicality and efficiency were in mind of offeror.
The Postal Rule
Efficiency, practicality, certainty and common sense balanced against fairness. Acceptance is binding as soon as letter is posted, whether offeror receives it or not.
Countermanding (withdrawal of acceptance)
Postal rule would dictate that this is anticipatory breach of contract, but held that if a phone call or other method reached before, then can be valid.
