Formation of a contract: Offer

Question 1

Unilateral Contract

Answer 1

Only one of the two parties has an obligation to fullfill

Question 2

Bilateral Contract

Answer 2

Both parties have an obligation to fullfill

Question 3

What is an offer?

Answer 3

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

Question 4

Offeror

Answer 4

Person making the offer

Question 5

Offeree

Answer 5

Person who offer is made to

Question 6

What kind of words might be uncertain

Answer 6

Words/phrases like ‘might be prepared’ are uncertain

Question 7

What will happen if the words are uncertain

Answer 7

Won’t be an offer

Question 8

Gibson v MCC

Answer 8

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

Question 9

Certain AO3

Answer 9

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

Question 10

Who can make offer?

Answer 10

Offer can be made by anyone, including individuals, businesses or machine

Question 11

Thornton v Shoe Lane Parking

Answer 11

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

Question 12

How long does offer last?

Answer 12

Only accepted whilst it’s open, in some contracts, time it is open will be specified, for courts to decide

Question 13

When is offer open?

Answer 13

When it’s communicated

Question 14

Taylor v Laird

Answer 14

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

Question 15

Open AO3

Answer 15

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

Question 16

What is an invitation to treat?

Answer 16

An indication that the person is willing to negotiate a contract

Question 17

Can an invitation to treat be accepted?

Answer 17

Nope

Question 18

Adverts

Answer 18

Are generally an invitation to treat

Question 19

Partridge v Crittenden

Answer 19

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

Question 20

Carlill v Carbolic Smokeball Co

Answer 20

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

Question 21

Ad AO3

Answer 21

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

Question 22

Shop Window Displays

Answer 22

They’re an ITT, sellers are not obliged to sell items to customers

Question 23

Fisher v Bell

Answer 23

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

Question 24

Shop Window Display AO3

Answer 24

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

Question 25

Items on a Shop Shel

Answer 25

They’re an ITT, when customer takes item to checkout, customer is making offer, shop can accept or decline it

Question 26

PSGB v Boots

Answer 26

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

Question 27

Auctions

Answer 27

Bidder makes offer, offer isn’t accepted until auctioneer bangs hammer.
They’re an ITT

Question 28

BCA v Wright

Answer 28

Facts: Auctioneers were prosecuted for offering unfit vehicles for sale
Held: Wasn’t an offer, was an ITT, prosecution failed

Question 29

Request for further information

Answer 29

Not an offer, is an enquiry

Question 30

Harvey v Facey

Answer 30

Facts: Farm, lowest price to sell for £900
Held: No contract made, when Facey replied, he was replying to request for info

Question 31

Further info AO3

Answer 31

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.