Offer Flashcards
What forms the basis of most common relationships?
Contracts
Contract law has developed mainly through judicial precedence, especially English case law.
Define a contract.
An agreement or promise entered into with the intention of creating an obligation to do or to refrain from doing a particular thing.
What is an obligation in contract law?
A juristic/legal bond in terms of which one party has a right to performance and the other party has a duty to render that performance.
What are the essential elements of a contract?
- Offer and acceptance
- Consideration
- Intention to be legally bound
- Certainty
What is an offer?
A statement by one party of willingness to enter into a contract on stated terms, provided these terms are accepted.
What are the requirements for an offer?
- Must be definite and complete
- Must contain enough information
- Must be certain
- Must contemplate acceptance
- Must be a firm offer
True or False: An offer must be made in a particular form.
False
An offer may be made orally, in writing, or by conduct.
What is an invitation to treat?
An expression of willingness to enter into negotiations which it is hoped will lead to the conclusion of a contract.
Give an example of an invitation to treat.
Display of goods in a shop
This was established in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (1953) 1 QB 401.
What is the general rule regarding advertisements for sale?
They are invitations to treat rather than offers.
In which case was an advertisement held to be an offer?
Carlill v Carbolic Smoke Ball (1893) 1 QB 256.
What happens in an auction regarding offers?
The auctioneer makes an invitation to treat; the offer is made by the bidder.
What must happen for an offer to be accepted?
The offer must come to the knowledge of the offeree.
What are the principal methods by which an offer may be terminated?
- Revocation
- Lapse of time
- Acceptance and rejection
- Failure of a condition
- Death
Can an offer be revoked after acceptance?
No, once accepted, it cannot be revoked.
What is required for revocation of an offer to be effective?
The notice of withdrawal must be brought to the attention of the offeree.
What does lapse of time refer to in contract law?
An offer cannot be accepted after the specified time limit or after a reasonable period if no time limit is specified.
What happens if an offer is rejected?
The offer is terminated.
What does failure of a condition mean in relation to an offer?
An offer may be subject to conditions; failure to satisfy these means the offer cannot be accepted.
When does an offer terminate due to death?
Once the offeree is made aware of the offeror’s death.
True or False: An offer can still be accepted if the offeree is unaware of the offeror’s death.
True
This is illustrated in the case of Bradbury v Morgan (1862) 1 H & C 249.
