Offer Flashcards
Features of a valid contract
1 - offer
2 - Acceptance
3 - Intention to create legal relations
4 - consideration
1 - Offer
- express willingness to contract made with the intention that it shall become binding
- must be sufficiently specific and comprehensive to be capable of immediate acceptance
2 - acceptance
- turns a specific and comprehensive offer made with the intention to be bound into agreement
- final and unqualified expression of assent to the terms of an offer
- communicated to offeror
3 - intention to create legal relations
- must intend to enter legally and enforceable agreement, under which all rights and liabilities can be enforced
4 - Consideration
- element of value in contract which supports agreement between both parties
Objective approach
- courts adopt position to look at all external factors form the position of the reasonable person - not what they think but what they said or did
- courts want to be obective to prevent parties from claiming they didnt mean something
- allow bussiness certianty and reliance
Invitation to treat
- statement indicating that the maker is willing to make offers
- not made on the ground that it shall become legally binding
Invitation to treat - cases
1 - Partridge v Crittenden (1968)
2 - Fisher v Bell (1961)
3 - Pharmaceutical society of GB v Boots Cash Chemist
Partridge v Crittenden (1968) - ITT
D ad for sale of Bramblefinch cocks and hens, stating that the price was to be 25 shillings for each. Under the Protection of Birds Act 1954, it was unlawful to offer for sale any wild live bird -> established that advertisement is ITT and not an offer, unless it is clear from the language used that it is intended as an offer
FIscher v Bell -
Fisher v Bell (1961) - ITT
D was shopkeeper displayed in his shop window a flick knife accompanied by a price ticket displayed just behind it. He was charged with offering for sale a flick knife, contrary to s. 1 (1) of the Restriction of Offensive Weapons Act 1959 -> display of the knife was not an offer of sale but merely an invitation to treat
3 - Pharmaceutical society of GB v Boots Cash Chemist
-all price labels on shelves /displays are ITT until brought to the till where it becomes an offer
Invitations to tender (ITTEND)
- tendering - choosing a company to supply goods or do a job nu asking several companies to make offers
- exceptions: when a party specifically binds themself by expression of intention e.g., to highest or lowest offer
ITTEND - Cases
1 - Harvela Investments Ltd v Royal Trust Co. of Canada (CI) Ltd [1982] 2 All ER 966
2 - Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council [1990] 3 All ER 25
ITTEND -Harvela Investments Ltd v Royal Trust Co. of Canada (CI) Ltd [1982] 2 All ER 966
-D held shares in company. and they invited the claimant and the second Dt to make an offer to purchase shares by sealed tender, in this invitation they bound themselves to accept the highest offer. C made bid for a fixed sum; the second D made bid for a fixed sum or alternatively for ‘$101,000 in excess of any other offer’, whichever was to be higher. The first D accepted the bid made by the second D, despite the fact that the fixed sum which they offered was lower than that offered by the claimant ->referential bid was invalid, and as such, the first defendant was bound to accept the claimant’s offer
ITTEND - Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council [1990] 3 All ER 25
-D were a local authority that managed the local airport, C were allowed to operate casual flights out of the airport, when up for renewal and the tender invitation was released to the C and other companies - The tender had a clause stating that tenders would not be considered if they missed the time and date deadline stipulated. - the court held that where particular rules or stipulations are included as part of an invitation to tender, then the recipients of the tenders must abide by them.
