Offer

Question 1

Offerer

Answer 1

Makes offer

Question 2

Offeree

Answer 2

Receives offer

Question 3

Bilateral offer

Answer 3

Where Party 1 and 2 have made promises

Question 4

Unilateral offer

Answer 4

Where Party 1 has made a promise if party 2 does something, but party 2 is under no obligation to do it.

Question 5

Invitation to treat

Answer 5

Where Party 1 signals that he would like to enter negotiations with party 2, but party 1 has not yet got to the state of making an offer

Question 6

4 examples of invitations to treat

Answer 6

1. Goods on shelves in a supermarket
2. Shop window displays
3. Newspaper and magazine adverts
4. Lots at an auction

Question 7

Case for goods on a shelf being an invitation to treat.

Answer 7

Pharmaceutical Society of GB v Boots Cash Chemists (1953)

Question 8

Facts of Pharmaceutical Society of GB v Boots Cash Chemists (1953)

Answer 8

Boots prosecuted for offering medicines on a shelf without a pharmacist present, an offence under the Pharmacy and Poisons Act 1933.

Not guilty as this was ITT and pharmacist was at till (the point of offer)

Question 9

Case for shop window displays being an ITT

Answer 9

Fisher v Bell (1961)

Question 10

Facts of Fisher v Bell (1961).

Answer 10

Shopkeeper charged under the Restriction of Offensive Weapons Act 1959 after displaying a knife in shop windows.

Not guilty cause it was ITT

Question 11

Case for newspaper and magazine ads being ITT.

Answer 11

Partridge v Crittendon (1968)

Question 12

Facts of Partridge v Crittendon (1968).

Answer 12

D advertised cocks and hens. 25 shillings for each. RSPCA prosecuted him for offering wild birds for sale.
Court deemed an ad was merely and ITT

Question 13

Why are lots at an auction ITT?

Answer 13

Auctioneer makes the invitation to treat; bidders make the offer

Question 14

When might an ad be an offer?

Answer 14

When it has specifics

Question 15

Case for when an ad might be an offer.

Answer 15

Carlill v Carbolic Smoke Ball Co (1893)

Question 16

Facts of Carlill v Carbolic Smoke Ball Co (1893).

Answer 16

Company displayed an ad saying that £100 would be paid to anyone who could use their smoke ball product for 2 weeks and still contract influenza.
Mrs Carlill followed instructions and contracted influenza.
Company claimed it was ‘puff’ and therefore not a serious offer.
Court said specifics in the ad showed it was an offer.

Question 17

6 ways an offer can be terminated.

Answer 17

1. If properly withdrawn before the offer has been accepted
2. Specified time for acceptance has passed
3. A reasonable time has passed
4. Offer is rejected or a counter-offer is made
5. Death of one of the parties
6. By acceptance

Question 18

Cases for if an offer is properly withdrawn before acceptance as regards to bilateral offers.

Answer 18

Routledge v Grant (1828)
Byre v Van Tienhoven (1880)

Question 19

Facts of Routledge v Grant (1828)

Answer 19

Routledge said his house would be available for purchase for 6 weeks.
He then withdrew this offer within this period and before Grant had accepted it.

Question 20

Facts of Byrne v Van Tienhoven (1880).

Answer 20

Byrne sent a letter withdrawing his offer, but the letter arrived after Van Tienhoven had accepted the offer so there was no termination.

Question 21

Case for if the offer is properly withdrawn before acceptance as regards unilateral offers.

Answer 21

Errington v Errington (1952)

Question 22

Rule from Errington v Errington (1952) as regards unilateral offers.

Answer 22

It is unlikely that the offerer can remove a unilateral offer after the other party has started to perform the required act

Question 23

Case for a reasonable time has passed.

Answer 23

Ramsgate Victoria Hotel v Montefiore (1866)

Question 24

Facts of Ramsgate Victoria Hotel v Montefiore (1866).

Answer 24

Montefiore was offered to buy shares in a hotel and 5 months later he agreed.
As the price of shares fluctuates, the court said the offer no longer stood.

Question 25

Case for the offer is rejected or a counter-offer is made.

Answer 25

Hyde v Wrench (1840)

Question 26

Facts of Hyde v Wrench (1840).

Answer 26

D offered to sell a farm to the C for £1000.
C offered £950 which the D refused.
C then sought to accept the original offer at £1000.
D refused to sell.
Was held that no contract existed

Question 27

Generally speaking, the death of either party terminates the offer but?

Answer 27

If the offerer dies, the offerees acceptance may still be valid if he did not know the offeror was dead

Question 28

What does the case Taylor v Laid (1856) say about the communication of the offer?

Answer 28

The offeror must communicate the offer to the offeree, as the offeree cannot accept an offer of which he has no knowledge.

Question 29

Different ways of communicating an offer?

Answer 29

To one person
A class of persons
The whole world (Carbolic Smoke Ball Co)

Question 30

Which case shows that when communicating an offer, the terms of the offer cannot be vague?

Answer 30

Guthing v Lynn (1831)

Question 31

Facts of Guthing v Lynn (1831).

Answer 31

The buyer of a horse said he would pay the seller an extra £15 if the horse was “lucky”.
Offer was too vague to be enforceable.