Formation of a contract: Offer Flashcards
Unilateral Contract
Only one of the two parties has an obligation to fullfill
Bilateral Contract
Both parties have an obligation to fullfill
What is an offer?
The starting point of a contract, it is the statement upon which the person making the offer is willing to enter the contract.
Can be verbal or written
Offeror
Person making the offer
Offeree
Person who offer is made to
What kind of words might be uncertain
Words/phrases like ‘might be prepared’ are uncertain
What will happen if the words are uncertain
Won’t be an offer
Gibson v MCC
Facts: Council said they might be prepared to sell him the house, he sent application but was unsuccessful.
Held: MCC didn’t make offer, they suggested pruchase was possible, not definite, Mr Gibson was unable to purhcase house
Certain AO3
P - Fair as council didn’t intend on being legally bound
DP - Upholds legal principle as defendants could have contracts imposed on them that they didn’t intend to enter
WDP - However, courts are often unsure on what is ‘certain’ or not, promotes judicial creativity
Who can make offer?
Offer can be made by anyone, including individuals, businesses or machine
Thornton v Shoe Lane Parking
Facts: Claimant sued park fro injury, one of their terms was that they weren’t liable for any injuries
Held: Claimant accepted terms when he purchased ticket so claim was unsuccessful
How long does offer last?
Only accepted whilst it’s open, in some contracts, time it is open will be specified, for courts to decide
When is offer open?
When it’s communicated
Taylor v Laird
Facts: Captain of ship resigned, worked as a crew member on the way back, claimed wages of a crew member upon his return
Held: Entitled to nothing as no offer was communicated to his employer
Open AO3
P - He shouldn’t have been entitled to wages as employer wasn’t aware, shouldn’t be bound to pay for agreements they didn’t know about
DP - Promotes communication between parties in advance if they want to be paid for work done
WDP - However, still worked so should be paid for work done, employer not out of pocket as cheaper wages
What is an invitation to treat?
An indication that the person is willing to negotiate a contract
Can an invitation to treat be accepted?
Nope
Adverts
Are generally an invitation to treat
Partridge v Crittenden
Facts: Offer put up to sell birds, D charged with offering for sale wild birds, which is an offence
Held: Was an ITT, offer is made by person responding to ad
Carlill v Carbolic Smokeball Co
Facts: Company said if they used it properly and still got the flu, company claimed it was an ITT
Held: Company made offer and were liable, depositing money into bank account in preparation for claims evidenced this
Ad AO3
P - Adverts vary, sometimes they’re an offer and sometimes they’re an ITT, confusing for lay people
DP - Hard for lawyers to advise clients on the likely outcome of their case as they vary
WDP - However, allows judges flexibility to reach best outcomes using professional judgements
Shop Window Displays
They’re an ITT, sellers are not obliged to sell items to customers
Fisher v Bell
Facts: Knife on display with price tage attached, was a criminal offence to offer a knife for sale
Held: Was an ITT so shop keeper wasn’t guilty of offence
Shop Window Display AO3
P - Ensures shop workers can decline sales to protect the public
DP - Also protects the person attempting to purchase the item which could cause them harm
WDP - However, this rule isn’t know by many lay people and could cause conflict and upset in stores
Items on a Shop Shel
They’re an ITT, when customer takes item to checkout, customer is making offer, shop can accept or decline it
PSGB v Boots
Facts: Boots has items on shelf which couldn’t be sold without pharmacist present, customers able to pick up item and take it to till, prosecuted for offering medicine for sale
Held: Boots weren’t liable, offer made by customer when they took item to till
Auctions
Bidder makes offer, offer isn’t accepted until auctioneer bangs hammer.
They’re an ITT
BCA v Wright
Facts: Auctioneers were prosecuted for offering unfit vehicles for sale
Held: Wasn’t an offer, was an ITT, prosecution failed
Request for further information
Not an offer, is an enquiry
Harvey v Facey
Facts: Farm, lowest price to sell for £900
Held: No contract made, when Facey replied, he was replying to request for info
Further info AO3
P - Not for lay people, confusing concept
DP - Makes contract law inaccessible for those without legal qualifications/advice
WDP - However, promotes freedom of contract and individuals shouldn’t be bound to contracts they’re unaware of.
