Offer Flashcards
What is an offer?
A promise one party makes for another party’s performance
What is the general rule for offer?
That it’s not really an offer until received by the offeree
What are some of the requirements of an offer?
-must be definite and complete
-must be certain enough for the offeree to accept or reject
What do you call an invitation for another party to make an offer as an indication that a party is open to negotiation?
An invitation to treat
What are some the examples of invitation to treat?
-display of goods in shop
-advertisement for sale
-auctions
-tenders
What are some of the statements that may appear to be offers but aren’t?
-invitation to treat
-supply of or request for information
-declaration of intention
Why is a display of goods in shop considered an invitation to treat and not an offer?
Because the seller is inviting customers to make an offer to purchase goods
Why is advertisement for sale considered an invitation to treat and not an offer?
-because the seller is inviting potential customers to make an offer to pay for the advertised price
What is the multi-acceptance principle? And how is it connected to advertisement for sale?
-this is a principle that states that if an advertisement for sale is an offer then many can accept that offer all at once which will cause problems if there’s limited amount of goods
What is one exception to advertisement for sale as an invitation to treat?
Advertisement from the manufacturer which makes it an offer now
What are tenders under invitation to treat and isn’t it considered an offer instead?
-this is where an individual seeks for specific goods or services and advertises the need for them
- you are inviting a seller to make their offer on the specific good or service
Why is an auction considered an invitation to treat and not an offer?
Because the auctioneer is inviting bidders to make offers on the items put for auction
What are some of the ways an offer can be terminated?
-revocation
-death
-time lapse
-acceptance and rejection
