lecture 2 Flashcards
offer and acceptance doctrine
standard way of establishing agreement
3 questions of the offer and acceptance principle
- did the parties reach agreement at all
- when did the contract come into existence
- what are the terms
why does offer and acceptance matter
an offer places offeror at risk of being legally bound. When offeree accepts it is too late for the offeror to change their mind
what makes something an offer
- objective, contextual interpretation
- principles/rules established in case law
what is not an offer
mere puffs - a boast about the product
mere request for info - “would you sell for 10”
invitations to treat
Carlill v Carbolic Smoke Ball Co.
company claimed to pay if someone got ill while using product, they claimed it was a mere puff but the advertisement seems to be a genuine offer
Pharmaceutical Society of GB v Boots
case law showing products on display in shops is an invitation to treat, not an offer
Website purchases - offer and acceptance
online shopping on website is invitation to treat not an offer, the customers order is the offer and this is accepted by the trader
exceptions to principle that ads/display do not equal an offer
automatic dispensing machines, online digital content purchases, where customer can take product and pay later, rewards (unilateral)
auctions and offer/acceptance
general rule is that auctions are mere invitations to treat, not offers. However, if the advertisement of auction promises highest bidder will be accepted no matter how low, this is offer
rules of acceptance
respond and match the offer
be communicated to offeror in appropriate manner
Felthouse v Bindley [1862] 6 LT 85
shows positive manifestation of acceptance is required not “if i hear no more”
Brogden v Metropolitan Rly Co [1887]
shows it is possible to accept offer through conduct, coal suppliers counter offer was filed by customer who then began taking delivery of coal
Hyde v Wrench
case which shows a counteroffer kills an earlier offer
Stevenson, Jacques & Co v Mclean
mere request for info versus counter offer
The last shot rule
the contract is on the terms of the party who sent the last set of terms met with no objection
limits to last shot rule
when there is no conduct that could count as acceptance
where the party is making it clear they reject terms
conversational acceptance
words of acceptance only effective if they actually come to offerors attention unless it is reasonable for the offeror to detect communication problem
postal acceptance
acceptance deemed effective as soon as placed in post, however to withdraw an offer, this must be received to take effect
instantaneous methods of communication
deemed effective when they are received
stipulating a method of communication
an offeror can require a method of acceptance be used, unless wording is clear any method “no less advantageous” is ok
revocation of offers
generally, can be revoked any time before acceptance is communicated
with unilateral - once performance is done, offer cannot be withdrawn
