Offer Flashcards
Provide an introduction for an offer.
- Starting point of contract.
- Proposition from 1 or more persons to another person or persons.
State + explain the first point of an offer, distinction between offer + invitation to treat.
Always applicable
* Must be a legally recognised offer, if other person is to accept it.
* Invitation To Treat (ITT): 1 person is inviting you to make an offer. Not recognised by law as an offer- cannot be accepted to make contract.
Invitations To Treat:
Articles Or Displays:
* Fisher v Bell: items displayed in a shop are only an ITT, even though there’s a price marked.
* Contents of basket become offer when customer presents it to checkout operator/self-scanning machine. Shops then accepts or declines.
Advertisements:
* Partridge v Crittenden: adverts offering items for sale are usually ITT, + are therefore not an offer.
Exceptions To Advertisements Being ITT:
* Carlill v Carbolic Smoke Ball: reward posters- offers to pay reward if person seeing poster does what is set out in poster.
Auctions:
* Auctioneer asking for bids isn’t making an offer- only an ITT.
* Payne v Cave: can be withdrawn at any time before it’s accepted.
* Offer is generally accepted in auction when auction dry says sold/bangs hammer down.
State + explain the second point of an offer, general request for information.
Not always applicable.
* Request for information + reply to such isn’t an offer- no legal implication.
* Harvey v Facey: can ask for more information before deciding to make/accept offer.
State + explain the third point of an offer, elements needing to be proven to establish an offer.
Always applicable.
Terms Of Offer Must Be Certain:
* Offer must be definite in its terms.
* Gibson v Manchester City Council: if terms are uncertain, likely an ITT rather than an offer.
Communication Of Offer:
* Can be communicated by any method (e.g. verbally, written, conduct (actions))
Who Can Make An Offer?
* Offeror
* Offer can be made by anyone (person, organisation, partnership, e.t.c.)
* Thornton v Shoe Lane Parking: can be made through a notice/machine.
To Whom Can An Offer Be Made?
* Offeree
* Gibson v Manchester City Council: one specific named individual.
* Carlill v Carbolic Smoke Ball: whole world.
Group of people.
Offer Must Be Communicated Before It’s Effective:
* Person accepting offer must know about offer when he does that conduct.
Offers Communicated By Post:
Communicated when delivered.
How Can An Offer End?
Revocation Of Offer:
* Payne v Cane: person making offer can revoke at any time before accepted.
* Byrne v Van Tienhoven: however, offeree must know offer has been revoked.
* Carlill v Carbolic Smoke Ball: implications where there’s an offer to whole world. Offer can end in 3 ways:
1) Setting time limit in offer
2) Expiry of reasonable time
3) Publishing revocation of offer in same way as original offer was made
* Communication of revocation doesn’t have to be from offeror directly, if person communicating revocation is reliable.
Rejection +/Or Counter Offer:
* Offer will cease when rejected.
* Cannot be accepted by person rejecting offer- as rejection ends offer.
* Rejection must be communicated to offeror before it takes effect.
Counter-Offer:
* Offer ceases to exist if offeree makes counter-offer.
* Hyde v Wrench: counter-offer has same effect as rejection, as it puts an end to original offer.
Lapse Of Time:
* If fixed period for duration of offer is stated, as soon as that expires there’s no offer.
* If offeror doesn’t set time limit, offer remains open for reasonable time.
* Ramsgate Victoria Hotel: reasonable time depends on type of offer (e.g. value, longer lasting items).
Death:
* If offeree dies, offer ends.
* If offeror dies, acceptance still takes place until offeree learns of offeror’s death.
*Acceptance:**
* Once offers been accepted, there’s an agreement- legally binding contract.
