Formation: Offer

Question 1

what is an offer?

Answer 1

an indication by one person to another of his willingness to enter into a contract with him on certain terms.

Question 2

how can an offer be expressed?

Answer 2

expressed or implied verbally or from actions

Question 3

does an offer have any legal significance?

Answer 3

yes as it creates in the offeree a power subsequently to create a contract by his own unilateral action

Question 4

what is an invitation to treat?

Answer 4

a general indication of ones willingness to negotiate that occurs before the offer

Question 5

how do you distinguish between an offer and an invitation to treat?

Answer 5

essential to look at the facts of the case, if it seems to be a proposal that is general and not given specifically to one individual (such as an advert) it is an invitation to treat, if more specific then is offer

Question 6

what are points of offer to consider?

Answer 6

• distinction between an offer and an invitation to treat
• presumptions regarding offers
• referential bids

Question 7

what are presumptions?

Answer 7

when intention cannot be ascertained presumptions may be invoked

Question 8

are shop displays offers or invitation to treats?

Answer 8

invitation to treat.

For example, pharmaceutical society of Great Britain v Boots Cash Chemist ltd (1953)

Question 9

are displays of services offers or invitation to treats?

Answer 9

offers

Question 10

are vending machines offers or invitation to treats?

Answer 10

offers

Question 11

are advertisements offers or invitation to treats?

Answer 11

invitation to treat. For example, Carlill v Carbolic Smoke Ball co (1893)

Question 12

are provisions of information offers?

Answer 12

no

Question 13

are auctions offers or invitation to treats?

Answer 13

invitation to treat

Question 14

are referential bids offers or invitation to treats?

Answer 14

mostly offers although not all are regarded as valid

Question 15

why must an offer be communicated?

Answer 15

so that the acceptor must do in order to make his acceptance effectual

Question 16

whats an example of an offer to the world?

Answer 16

Carlill v Carbolic Smoke Ball Company

Question 17

when and where is a contract made?

Answer 17

the answer depends on the distinction between instantaneous and postal communication

Question 18

what is instantaneous communication?

Answer 18

when parties are ace to face or using telephone and the contract is formed at that time

Question 19

when and where is a contract formed when instantaneous communication is used?

Answer 19

when: instantly, as soon as offer is met with unqualified acceptance
where: contract is made where the acceptance is received

Question 20

what are postal communications?

Answer 20

when parties use the letter postal service. A contract is made when and where the offeree posts on acceptance.

Question 21

what are electronic communications?

Answer 21

when the parties use the internet to convey a contract

Question 22

What does acceptance ‘subject to contract’ mean?

Answer 22

The phrase found in when an acceptance does not necessarily amount to a qualification.

Question 23

What is the effect of two identical offers which cross in the post?

Answer 23

Held that no contract exists. This problem arose in Tinn v Hoffman

Question 24

How might an offer terminate:

Answer 24

• acceptance
• revocation/ withdrawal
• lapse
• rejection
• counter offer
• not meeting a condition that the contract was dependent upon
• death and insanity

Question 25

How does acceptance terminate an offer?

Answer 25

An unqualified acceptance perfects the contract and ends the offer

Question 26

How can revocation/ withdrawal terminate an offer?

Answer 26

If a person who makes an offer revokes it before it has been accepted, which he is at liberty to do, negotiation is at an end

Question 27

How can an offer lapse?

Answer 27

Termination of the offer by expiry of specified time or by laps of reasonable length of time, if no time specified

Question 28

How can offer be terminated by rejection?

Answer 28

Rejection is find in its effect

Question 29

How does a counter offer terminate an offer?

Answer 29

A counter offer is a rejection but constitutes a new offer

Question 30

What is the principle of acceptance with regards to counters offers?

Answer 30

An acceptance must be unqualified: if there is any qualification then it becomes a counter offer.

Question 31

How does death and insanity impact an offer?

Answer 31

If the offer is personal to the offer or, his or hers death terminates it, otherwise the offer continues until the offered receives notice of the offers death