Offer Flashcards
Offer Definition
An expression of willingness to contract on certain terms with the intention (actual or apparent) that it should become binding as soon as it is accepted
Contract Definition
A promise or set of promises enforceable by law
Specific Offer Definition
Made to an individual or to a specific group of people
General Offer Definition
Made to the world at large
Unilateral Offer Definition
A promise which demands an act in return
Bilateral Offer Definition
A promise which demands a promise in return
Collateral Offer Definition
A promise to enter into a minor contract in return for a promise to form a major contract
Offer - Advert Cases
Partridge v Crittendon Grainger & Son v Gough Carlill v Carbolic Smokeball Co.Ltd Lefkowitz v GMS Esso Petroleum v Customs and Excise
Partridge v Crittendon - ITT
- It is an offence to “offer” to sell
- Placed advert offering bramble finches for sale
- S.6 of protection of birds act made it an offence to offer such birds for sale
- Literal rule applied - was an invitation to treat
Grainger & Son v Gough - ITT
-It was not an offer to sell the wine but an invitation to treat
Carlill v Carbolic Smokeball Co.Ltd - General Unilateral Offer (advert)
- Reward = £100 for catching influenza after using ball 3 times daily for 2 weeks
- £1000 deposited in the bank to “show our sincerity in the matter”
- It was an offer to the whole world
- Did not have to notify acceptance but merely perform demands
- Business and commercial matter therefore presumed binding
Lefkowitz v GMS - Collateral Offer (advert)
- Promise to give fur coat in exchange for £1
- Terms = to be one of the first three in the queue on a certain date and time
- Store could not discriminate on gender and had to sell to Mr Lefkowitz
- Business and commercial matter therefore presumed binding
Esso Petroleum v Customs and Excise - Collateral Offer (advert)
“Firstly he is accepting the offer of a coin if he buys 4 gallons of petrol. Secondly he himself is offering to buy 4 gallons of petrol, this offer is accepted by the filling of his tank”
- Must be in reliance of the advert to accept
- Business and commercial matter therefore presumed binding
A letter can be…
A statement, invitation to treat or an offer
Offer - Letters cases
Harvey v Facey
Gibson v Manchester City Council
Storer v MCC
Harvey v Facey - Statement
- Telegraph asking for the lowest cash price
- It was a statement, not an offer
Gibson v Manchester City Council - Invitation to Treat
- May be prepared to sell
- Was an Invitation to treat
- Lacked intention to be bound
- There were no promises to accept
Storer v MCC - Offer
- Letter saying - “If you sign the agreement and send it to me, I will send you the agreement signed on behalf of the council
- Letter was a Collateral Offer - specific unilateral and specific bilateral
- There was intention to be bound
Denning - “A man cannot get out of a contract by saying “i did not intend to contract” if by his words he has done so…
Offer - Shop Cases
Fisher v Bell
PSGB v Boots
Fisher v Bell
-Was an offence to offer for sale
PSGB v Boots - Invitation to Treat
- Goods on shop shelves are invitations to treat not offers
- Products sold must be supervised by the pharmacist (Pharmacy & Poisons Act 1933)
- Shopkeepers must have the right to refuse to sell
Lord Goddard - “Ordinary principles of common sense must be applied here”
Offer - Auction Cases
Payne v Cave
Warlow v Harrison
Harris v Nickerson
Payne v Cave (auction)
- Auctioneer invites offer
- Customer makes offer
- Offer is accepted by the fall of the hammer and a contract is made
- Withdrawal of an offer must be made before acceptance
Warlow v Harrison
-The horse was an invitation to treat and was a collateral offer
General - Offer to the world
Unilateral - Promise in exchange for the act of being the highest bidder
Specific - Offer made by the highest bidder
Bilateral - For the auctioneer to form a contract with the highest bidder
Harris v Nickerson
- Advert contained no promises
- Advert was to advertise an auction, it was an invitation to treat
Offer - Tender Cases
Spencer v Harding
Harvella v Investments Trust of Canada
Blackpool Fylde Aero Club v Blackpool BC
Spencer v Harding
- Advert to buy stocks
- Advert amounted to an invitation to treat
- The tender was an offer
- No promise to accept the highest bidder therefore could refuse to accept the claimants offer
Harvella v Investments Trust of Canada - Collateral Offer - Specific unilateral to enter into a specific bilateral
- Request for tenders was an offer capable of acceptance
- Minor contract was to promise to accept the highest bidder - inducement to sell shares
- Referential bids are invalid
- The whole purpose of a contract is to reach an agreed bargain
Blackpool Fylde Aero Club v Blackpool Borough Council - Specific Unilateral Offer
Specific - To 7 parties to consider their tenders
Unilateral - Must submit tender before 12 noon on 17th march
-Council failed to consider the bid even though the terms were met
-Offer to contract by tender comes from the bidder (Spencer v Harding)
Offer - Ticket Cases
Thornton v Shoe Lane Parking
Thornton v Shoe Lane Parking (ticket)
- Machine itself constituted as the offer
- Acceptance was the putting of money into the machine
- Therefore the clause excluding liability for personal injury was not incorporated into the contract
Offer - Counter Offer Cases
Hyde v Wrench
Hyde v Wrench
-When a counter offer is made, it destroys the original offer meaning the original offer is no longer capable of acceptance
Communication of an offer
“An offer must be communicated to the offeree before it can be accepted”
Offer - Communication of an offer Reward Cases
R v Clarke Williams v Cowardine Carlill v Carbolic Smokeball Co.Ltd Esso Petroleum v Customs & Excise Lefkowitz v GMS
R v Clarke
Held
- Must show reliance and consensus ad idem
- This cased lacked reliance and consensus ad idem
Williams v Cowardine
- There can be a contract with any person who carries out the necessary conditions in an advertisement
- All that was necessary to fulfil the contract was that she knew of the reward before giving the information (even if her only motive to give the information was for the reward)
- Motive does not matter
Carlill v Carbolic Smokeball Co.Ltd (reward)
- Did not have to communicate acceptance
- Simply carry out the terms demanded as it was a general unilateral offer
Esso Petroleum v Customs & Excise (reward)
Lord Simon:
The requirements for a contract is intention, consensus ad idem and reliance on the promise
Lefkowitz v GMS (reward)
- Did not have to communicate acceptance
- Simply had to meet the terms demanded
Offer - Termination of an offer
An offer may be terminated by the offeror expressly or it may be terminated impliedly because of the conduct of the parties
Offer - Termination of an offer Sections
- Rejection
- Acceptance
- Lapse of time
- Counter offer
- Failure of a condition
- Death
- 3rd Party revocation
- Revocation
Rejection
The refusal of an offer puts an end to an offer
Acceptance
“Acceptance is the final assent to the terms of an offer”
Lapse of Time
- An offeror is entitled to stipulate the length of time for which the offer will remain open
- An offer can expire after the passage of a reasonable time
Lapse of Time Cases
Ramsgate Hotel v Montiefore
Quenerduaine v Cole
Ramsgate Hotel v Montiefore
- Could not accept offer for shares as offer had lapsed
- Applied for shares on 8th June but none was allocated until 23rd November
- Acceptence must take place within a reasonable time as shares are highly volatile
- Delay from June to November was unreasonable
Quenerduaine v Cole
- An offer by telegram indicated an equally expedient mode of acceptance was required
- Acceptance by post was not to be valid
Counter offer (termination) - Hyde v Wrench
- Counter offer reject an destroy original offers therefor one cannot accept original offer after making a counter offer as the original offer no longer exists
Failure of a condition case
Financings v Stimson
Financings v Stimson
- Decided to buy a car but upon returning the car had been stolen and badly damaged
- An implied condition in the offer that the car would be in the same condition until the time of acceptance
Death Cases
Reynolds v Atherton
Bradbury v Morgan
Reynolds v Atherton
- If offeree dies it is unlikely that the executors or administrators of the estate can accept on their behalf
Bradbury v Morgan
- The death of the offeror terminates the offer if noticed to the offeree
- If offeree accepts without such knowledge of the death of the offeror then a contract may be formed
3rd Party revocation case
Dickenson v Dodds
Dickenson v Dodds
Lord Justice James:
- The plaintiff knew Dodds was no longer minded to sell
- “As plainly and clearly as if Dodds had told him in so many words, I withdraw my offer”
- Offer was effectively revoked as friend was a reliable source of revocation
- If a deposit had been placed the offeror could not have revoked
Revocation Cases
Payne v Cave Bryne v Van Tienhoven Errington v Errington and Woods Daulia v Four Millbank Nominees Shuey v USA
Payne v Cave (Revocation)
An offer can be revoked anytime before acceptance takes place
Bryne v Van Tienhoven
- Revocation must be communicated
- General unilateral contracts are exceptions to this rule
Errington v Errington and Woods
- Wife was entitled to the house as the father made a unilateral offer before he died
- Wife continued to perform acceptance by paying mortgage payments
- Unilateral offers - Acceptance takes place only on full performance, cannot revoke offer once acceptance has started
Daulia v Four Millbank Nominees
You must accept fully
Shuey v USA
- Should revoke an offer in the same way it was made - USA law
- No English law on the matter
- Richards - “Should take reasonable steps to notify revocation”
