Formation Of Contract Flashcards
1
Q
The offer
A
- the offer is the starting point of the contract
- the offer must be definite and not vague - Gibson v Manchester City council
- an ‘invitation to treat’ does not count as an offer e.g, adverts, goods in shop windows, lots at an auction, request for information
- advertisements - partridge v cittenden
2
Q
Who can make an offer
A
- an offer can be made by anyway, even a machine - Thornton v shoe lane parking
- an offer only lasts as long as its open and this must be communicated to the offeree - Taylor v larid
- exact timing is critical - Stevenson v McLean - where an enquiry about credit terms was not a counter offer
- an offer can end though:
- revocation
- rejection
- lapse of time
- death
- acceptance
3
Q
How can an offer end
A
- revocation - withdrawn at any time before acceptance. This must be communicated to the offeree.
- the offeree can make a separate contract with the offeror to keep it open - a collateral contract
- communication of the revocation doesn’t have to come from the offeror directly a reliable source is sufficient
- rejection - this ends the offer. Counter offers can be made, but they will be all new offers. An offer made to a group of people and rejected by one of them remains open to the others. Hyde v wrench
- lapse of time - if no time limit has been set on the offer, it will depend on the nature of the offer and what is considered reasonable
- death - offer ends if wither party dies, however the executors or administrators of his estate can make a new offer
- acceptance - once the offer has been accepted, it ends
4
Q
Acceptance of the offer
A
- must be positive and unqualified based on the terms
- acceptance must be communicated to the offeror either in writing, email, text ect
- must be a positive act of acceptance - felthouse v bindley
- of the offer is a general offer without precise instructions on how it is to be aspected, them it is still a valid acceptance
- acceptance is generally held to have taken place once it has been communicated to the offeror
- acceptance by conduct - means that a contract is valid if one party has already performed its obligations but a contract remains unsigned by one party
5
Q
Acceptance by use of the post
A
- the postal rules. If the letter of acceptance has been posted, and that was the usual or accepted means of communication, if it has been properly stamped/addressed and if the offeree can prove the letter was posted, then acceptance tales place the moment the letter is posted exception to normal rules of acceptance - Adam’s v lindsell
6
Q
Electronic methods of communication
A
- acceptance occurs when the offeror is aware of the acceptance, in other words, once the buyer has received confirmation that their acceptance has been acknowledges
7
Q
How to apply offer and acceptance rules to a problem
A
- step 1 - identify what happened in chronological order
- step 2 - identify whether event is an innovation to teat, offer, counter offer, acceptance ect
- step 3 - attach relevant authority (rules) for each event
- step 4 - apply the authority to establish when the offer is open and when it ends
- step 5 - identify when acceptance took place. If that is while the offer is open, there is a contract. If it does not, there is no contract
