Introduction and Agreement - Offer Flashcards
Agreement
Agreements do not have to be in writing, signed, or in a particular form of words.
Requirements of a Valid Contract
Intention, Consideration, and Agreement are necessary for a valid contract.
Objectivity Principle
“If a person conducts themselves in a way that a reasonable person would believe they are assenting to a contract, they are bound by it, regardless of their actual intention.” - Smith v. Hughes [1871]
Definition of an Offer
“An expression of willingness to contract on specified terms made with the intention of becoming legally binding upon acceptance.” - Treitel
Distinguishing an Offer from an Invitation to Treat
An invitation to treat is the first step in negotiations, inviting other parties to make an offer. It is different from an offer.
Gibson v. Manchester City Council [1979]
Court of Appeal held there was a binding contract, while the House of Lords held there was no binding contract because the Council’s letter was not a clear offer but an Invitation to Treat.
Storer v. Manchester City Council [1974]
The Council’s statement was deemed an offer with clear and certain terms, leading to a binding contract.
Self-Service Displays - Pharmaceutical Society of Great Britain v. Boots Cash Chemist [1953]
Goods on display in a shop are considered an invitation to treat. The offer is made by the customer at the desk.
Shop Window Displays - Fisher v. Bell [1961]
A display of goods in a shop window is an invitation to treat, not an offer.
Partridge Adverts v. Cittenden [1968]
An advertisement is usually an invitation to treat, not an offer for sale, to avoid potential breach of contract if supplies are limited.
Carlil v. Carbolic Smoke Ball Co. (1893)
The advertisement was a unilateral offer because it prescribed a specified act (using the smoke balls) as acceptance, leading to a binding contract.
Lefkowitz v. Great Minneapolis Surplus Store 86 NW 2d 689 (1957)
The advertisement constituted a unilateral offer, and Mr. Lefkowitz was entitled to the coat by being the first customer to arrive at the specified time and price.
Unilateral and Bilateral Contracts
Bilateral contracts involve an exchange of promises, while unilateral contracts require performance of a specified act as acceptance.
Bilateral Contract Example
“I promise to sell a cup of coffee. You promise to pay £3.” Both parties are bound by the contract.
Unilateral Contract Example
“I will give you £10 to find my lost dog.” The contract can only be accepted by finding and returning the lost dog, not by promising to do so.
