OFFER Flashcards
what is an offer
An offer is communicated by the offeror to the offeree and it is a statement of terms upon which a person is prepared to be bound to by a contract
What does the case of Gibson v Manchester council demonstrate surrounding the nature of an offer
The offer must be definite in terms. Words such as ‘might be prepared to’ or ‘may be able to’ indicate uncertainty and therefore it is likely to be deemed an invitation to treat as opposed to an offer
What is an invitation to treat
an indication that a person is willing to negotiate a contract but that they are not yet ready to make a legal offer
Is an advert an offer?
NO. seen in the case of Partridge v Crittenden (prosecuted of selling birds however not an offer but instead an invitation to treat)
HOWEVER if the advert says it is an offer than this will be taken as such
What is a unilateral offer
Where there is a promise to perform an obligation with no corresponding obligation of the other party.
For example a reward for finding a dog. (if the offeree does the act then a contract is seen however they do NOT need to find the dog)
What is a bilateral offer
An offer between identified parties where both the offeror and offeree must do something for the contract
Unilateral offer case
Carlil v Carbolic smokeball = unilateral offer. The promise was an offer that could be accepted by anyone who used the smoke ball correctly and still got the flu therefore carlil was awarded damages
Are goods on a shop window or shelf an offer?
NO - they are an invitation to treat
This is because the shop keeper retains the rights to turn down selling the product to some customers for example if they are under the legal age.
Fisher v Bell - deemed an invitation to treat when displaying flick knife in shop window
Goods on a shelf remain an invitation to treat until a offeree puts them to the checkout operator where it then becomes an offer to be either accepted or declined
Are products at an auction an offer?
When the product is displayed then it is considered an invitation to treat however when the bidder bids that is then considered an offer an the auctioneer has the right to either accept or decline the offer
British car auctions v Wright
Is a request for more information an offer?
NO - as seen in Harvey v Faces
D messaged saying will you sell me a farm Lowest price
- C responded lowest price that could be accepted is £900
D trued to buy the farm for £900 however couldn’t because there was no offer
when does an offer become an offer
An offer comes into existence when it is communicated to the offeree. Communication requires the offeree to know that the offer exists.
Taylor v Laird
What happened in Taylore v Laird
C worked as a captain on a ship but quit however still needed to get home to England therefore worked as an ordinary crew member. C didn’t get paid when they made it back for the work done as an ordinary crew member. NO contract was present because the ship owner didn’t know that he was working as an ordinary crew member
What happened in the case of Stevenson v Mclean
Exact timing of the offer is crucial
D offered to sell iron and stated the offer would remain open until Monday.
At 10am C asked if they could have credit terms but NO REPLY
At 1: 34pm the offeree accepted the offer
BUT
At 1:25pm the offeror sent a message saying that the iron had been sold but it didn’t reach the offeree until 1:46pm
The query about credit was NOT a counter offer but a request for more information therefore D was sued for breach of contract as the contract began at 1:34pm
How can an offer end
- revocation
- rejection
- lapse of time
- death
- acceptance
Revocation
an offer can be revoked (withdrawn) at any time BEFORE acceptance. The offeror must communicate revocation to the offeree before it is effective
Routledge v Grant = D told C that they didn’t want to sell there house even though they gave a 6 week period where the offer was open for
- can be brought to their attention by a third party Dickinson v Dodds 1876
