Offer Flashcards
offeror
person making an offer
offeree
person to whom the offer is made
what is an offer
starting point of a contract
a statement of the terms upon which the person making the offer is willing to enter a contract
can be written or verbal
can be made to a person or to the whole world at large
must be fully communicated to the offeree
part of the negotiations
can be made by anyone
what is an invitation to treat
merely an indication if a willingness to start negotiations and is not an offer
preliminary to negotiations
types of ITT
- advertisement in newspaper/magazine (Partridge v Crittenden)
- shop window (Fisher v Bell)
- self service shop
- customer makes offer, shopkeeper decides if to sell (Pharmaceutical Society of GB v Boots) - auction
- bidders make offers, if item sold “without reserve” = unilateral offer and sold to highest bidder (Harris v Nickerson) - request for information
- request/reply not offers, just general enquiry
explain offer
- vending machine
- owner of machine makes offer, buyer accepts (Thornton v Shoe Lane) - giving information is NOT an offer (Harvey v Facey)
- can be a statement of price where an offer is also intended (Biggs v Boyd Gibbins)
- statement is not an offer is the words you use to show uncertainty as to whether there is willingness to make a contract (Gibson v Manchester CC)
explain communication of the offer
offer can’t be accepted unless the person seeking to accept it knows of its existence l
offers to the public at large: unilateral offers
- can be addressed to a gc of people/general public
- accepted when acted upon
can be accepted as long as it is communicated to the individual claiming to accept it (Carlill v Carbolic Smoke Ball)
adverts for unilateral contracts are generally treated as offers
ending an offer
an offer can only be accepted whilst it is open
can be ended:
1. lapse of time
2. revocation
3. rejection
4. counter-offer
5. death of the offeror
6. death of the offeree
ending an offer: lapse of time
(1) lapse of time
- offers made for fixed time period: offer lapses at end
- otherwise ends after reasonable time
- reasonable: depends on circumstances, eg. showed period for something perishable and long period for something large and complex (Ramsgate Victoria Hotel v Montefiore)
ending an offer: revocation
(2) revocation
- person who makes an offer can revoke (withdraw) his offer at any time before it has been accepted
- the person to whom the offer was made must receive notification of the withdrawal; at which point can no longer accept the offer
- withdrawal can occur during any period the offer is said to be open (Routledge v Grant)
- person can find out from a reliable course that an offer had been accepted - revocation can be via reliable third party (Dickinson v Dodds)
ending an offer: rejection
(3) rejection
- once an offer is rejected it can’t be accepted
- rejection of the offer must be communicated
- attempting to accept the offer after he rejects it is a new offer the other can accept
- rejection must be a clear rejection, not just a request for more information (Stevenson v McLean)
l
ending an offer: counter offer
(4) counter-offer
- rejects the original offer and created a new offer (Hyde v Wrench)
- commonly takes place during negotiations
- must be communicated to be effective
ending an offer: death of offeror
(5) death of the offeror
- if the offeree knows the offeror has died, the offer will lapse
- probably will not lapse if the offeree is unaware of the death (Bradbury v Morgan)
- fulfilled by person responsible for their affairs
- BUT lapses where an offer requires personal performance by offeror
ending an offer: death of offeree
(6) death of the offeree
- offer lapses and can’t be accepted by representatives
