Formation Of A Contract - Offer Flashcards
What is an offer?
A statement of terms upon which the person making the offer is willing to enter the contract
Can be verbal or written
What are offeror and offeree
Offeror - person making offer
Offeree - person offer is made to
What is the first rule of offer?
- The words of the offer must be certain - must be clear an offer is being made.
Case - Gibson v MC
Held : council didn’t make an offer as words weren’t certain
What is the second rule of offer?
Who can make an offer - anyone including individuals, businesses, notices or machine.
Case - Thornton v Shoe Lane Parking
Held : offer made by machine was successful as purchasing a ticket was bound by terms
What is the third rule of offer?
- How long does an offer last? - can only be accepted when offer is open. Offer is open once communicated.
Case : Taylor v Laird
Held - entitled to nothing as no offer was communicated to employer.
What is the fourth rule of offer?
- Offer or ITT? - where you invite someone else to make you the offer
Advertisements
Case : partridge v crittenden
Held- ITT not offer as it’s responding to advert
Case : Carlill v carbolic smokeball
Held - adverts can be offers if words are clear
Shop/window display - sellers aren’t obliged to sell items to customers
Case : fisher v bell
Held- items on display will be an ITT
Auctions - bidder makes offer, auctioneer bangs hammer to accept, auctions are ITT
Case : BCA v Wright
Held- not guilty as items at auction are ITT, bidders are ones making offer.
What is the fifth rule of offer?
- Request for further information - if someone asks for further details it is an enquiry
Case : Harvey v Facey
Held- request for further information isn’t an offer
How can an offer end? (6)
- Revoke offer if communicated by person or by reliable third party.
Case : Dickinson v Dodds - Rejection
Case : Stevenson v mcclean - Lapse of time - if there’s a time limit offer ends
Case : ramsgate Victoria hotel - Death
- Acceptance
- Counter offer