O And A Flashcards
When does contract being
When there’s an offer and acceptance
What is an invitation to treat, offer and acceptance
ITT- an invitation for a party to make an offer
Offer- a statement of terms upon which a person is prepared to be bound
Acceptance- unconditional assent to all terms of the offer
ITT
ON DISPLAY IN SHOP - the customer does not make the offer until they take the goods to the till. Acceptance cannot be once an item taken off the shelf as the customer would breach the contract if they change their mind (pharmaceutical society v boots)
DISPLAY IN A WINDOW - cannot be offer as may be display item only or may be legal restriction on who can buy. The shop keeper must have freedom to contract with who they want (fisher v bell)
ADVERTISEMENTS - not general offer it is ITT (partridge v crittenden)
LOTS AT AUCTION - ITT. Bidder then makes offer, auctioneer accepts by banging hammer (car auctions v wright)
Types of offer
Bilateral- both parties promise something to eachother
Unilateral- one party makes promise, offeree required to perform action in order to accept
Collateral offer - offerer can make a seperate offer with the offeror to keep it open, or only sell to him
Rules of offer 1
Terms must be certain (Gibson v Manchester)
Must be communicated to offeree (Taylor v laird)
Can be made to one person or the whole world (carbolic smoke ball co)
Can be made by notice or machine (Thornton v shoe lane parking)
Request for info is not an offer (Harvey v facey)
Rules of offer 2
Offer can be revoked at any point before acceptance (routledge v grant)
Can be done through third party if reliable ( Dickinson v Dodd)
Withdrawn must be communicated before effective (Byrne v tienhoven)
Unilateral cannot be revoked if other party started the performance (etherington v ehterington)
Offer terminated by
Being accepted or withdrawn before the acceptance
If the offer had fixed time to remain open, ends when specific time has elapsed
If no fixed time then ends when reasonable time is given (ramsgate v montefiore)
Counter offer destroys original offer - Hyde v wrench
Offeror dies
Rules of acceptance
Positive acceptance of all the terms in the offer. Must be communicated to the offeror, silence is not acceptance (felthouse v bindley)
Acceptance can be in any form writing, words or implied conduct (Yates v pulleyn) (reveille v anotech)
Ways of accepting an offer
Conduct- a unilateral contract requires this (Carlill) In buisness, accpetance by conduct may take place before contract is formally agreed (Reville v anotech)
Post - Postal rule
Ways of accepting
Conduct- unilateral offer requires this. In business acceptance by conduct can happen before contract is fully agreed (reveille v anotech)
Post- postal rule- the post is the accepted method of communication, the letter is properly addressed and stamped, offered can prove the letter was posted.
If followed, acceptance can take effect as soon as it’s posted, not when it’s received (adams v lindsell)
Rule applies even if letter is never received (fire insurance v grant)
Electronic means- it is effective one the offeror knows about it (entores miles far east). out of hours messages are only effective once office is reopened (brinkibon) (Thomas v bpe)
Distance selling -
Consumer protection reg 2000 if key info is omitted then contract not formed despite acceptance
Article 11 ECD regs 2002 acceptance valid at dispatch
Consumer contracts reg 2013 consumer can revoke offer after acceptance for up to 14 days in distance selling agreements
