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
Dickinson v Dodds
Revocation - trusted third party
Dodds offered to sell a house to Dickinson. however a reliable person told Dickinson that Dodds had withdrawn his offer and this was sufficient revocation
What is a collateral contract
a separate contract that keeps an offer open or where the offeror can ONLY sell to one identifies offeree.
Rejection
Once an offer is rejected it cannot be accepted after as the rejection ENDS the offer. The rejection must be communicated before the rejection is effective.
A counter offer is rejection and ends the initial offer- likely in negotiation
Hyde v Wrench = D offered sale for 1000, C then offered 950 which was rejected, they then tried to accept the 1000. BUT the counter offer ended the initial offer
Lapse of time
if a fixed period within an offer is stated then the offer ends once the time is up. HOWEVER when there is no set time then it is deemed to be a ‘reasonable time’ - subjective.
Ramsegate v Motfiere - D was offered shares in the hotel in June, then tried to buy the shares in November however the time between the offer and acceptance was too long = lapse of time
Death
If the offeree dies then the offer ends and those dealing with his estate CANNOT accept on his behalf. but instead they can make new offers.
When an offeror dies, acceptance can still take place until the offeree learns of the offeror’s death. NOT THE CASE FOR PERSONAL PERFORMANCE
what is a unilateral offer?
An offer that is said to be ‘an offer for the world’
No recognised offeree
Action/performance is acceptance
What is a bilateral offer
An offer made between 2 or more parties whereby all parties involved are named and recognised.
What are the 3 cases demonstrating the rule that goods displayed in a shop is an invitation to treat and NOT an offer
Fisher vv Bell 1961
Partridge v Crittenden 1968
Pharmaceutical society of Great Britain v Boots Cash Chemist 1953
What are the rules for offer and acceptance at auctions
When a good is listed in an auction catalogue: Invitation to treat
A bid for a good: Offer
Banging of the Hammer: Acceptance
Creates a collateral contract
s 57 (2) Sale of Goods aCT 1979
What is the exception for goods for sale at an auction??
Where there is a reserve placed upon a good for sale meaning that acceptance cannot take place until that reserve price is surpassed
Barry v Heathcote Ball & Co 2001
Rules for tenders and contractual relations
Tenders:
Party issuing public notice: invitation to treat
Suppliers: Bidding
Party evaluating bid: acceptance/ counteroffer/ rejection
Blackpool Borough Council 1990 1 WLR 1195
What must an offer be distinguished from
- Statement of intention Fickus 1900 2 Ch 331
- Supply of information: Harvey v Facey 1893 AC 552
