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Contract Law > Offer > Flashcards

Offer Flashcards

1
Q

Offer Definition

A

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

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2
Q

Contract Definition

A

A promise or set of promises enforceable by law

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3
Q

Specific Offer Definition

A

Made to an individual or to a specific group of people

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4
Q

General Offer Definition

A

Made to the world at large

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5
Q

Unilateral Offer Definition

A

A promise which demands an act in return

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6
Q

Bilateral Offer Definition

A

A promise which demands a promise in return

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7
Q

Collateral Offer Definition

A

A promise to enter into a minor contract in return for a promise to form a major contract

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8
Q

Offer - Advert Cases

A 
Partridge v Crittendon
Grainger & Son v Gough
Carlill v Carbolic Smokeball Co.Ltd
Lefkowitz v GMS
Esso Petroleum v Customs and Excise
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9
Q

Partridge v Crittendon - ITT

A
  • 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
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10
Q

Grainger & Son v Gough - ITT

A

-It was not an offer to sell the wine but an invitation to treat

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11
Q

Carlill v Carbolic Smokeball Co.Ltd - General Unilateral Offer (advert)

A
  • 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
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12
Q

Lefkowitz v GMS - Collateral Offer (advert)

A
  • 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
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13
Q

Esso Petroleum v Customs and Excise - Collateral Offer (advert)

A

“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
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14
Q

A letter can be…

A

A statement, invitation to treat or an offer

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15
Q

Offer - Letters cases

A

Harvey v Facey
Gibson v Manchester City Council
Storer v MCC

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16
Q

Harvey v Facey - Statement

A
  • Telegraph asking for the lowest cash price

- It was a statement, not an offer

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17
Q

Gibson v Manchester City Council - Invitation to Treat

A
  • May be prepared to sell
  • Was an Invitation to treat
  • Lacked intention to be bound
  • There were no promises to accept
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18
Q

Storer v MCC - Offer

A
  • 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…

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19
Q

Offer - Shop Cases

A

Fisher v Bell

PSGB v Boots

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20
Q

Fisher v Bell

A

-Was an offence to offer for sale

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21
Q

PSGB v Boots - Invitation to Treat

A
  • 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”

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22
Q

Offer - Auction Cases

A

Payne v Cave
Warlow v Harrison
Harris v Nickerson

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23
Q

Payne v Cave (auction)

A
  • 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
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24
Q

Warlow v Harrison

A

-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

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25
Q

Harris v Nickerson

A
  • Advert contained no promises

- Advert was to advertise an auction, it was an invitation to treat

26
Q

Offer - Tender Cases

A

Spencer v Harding
Harvella v Investments Trust of Canada
Blackpool Fylde Aero Club v Blackpool BC

27
Q

Spencer v Harding

A
  • 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
28
Q

Harvella v Investments Trust of Canada - Collateral Offer - Specific unilateral to enter into a specific bilateral

A
  • 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
29
Q

Blackpool Fylde Aero Club v Blackpool Borough Council - Specific Unilateral Offer

A

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)

30
Q

Offer - Ticket Cases

A

Thornton v Shoe Lane Parking

31
Q

Thornton v Shoe Lane Parking (ticket)

A
  • 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
32
Q

Offer - Counter Offer Cases

A

Hyde v Wrench

33
Q

Hyde v Wrench

A

-When a counter offer is made, it destroys the original offer meaning the original offer is no longer capable of acceptance

34
Q

Communication of an offer

A

“An offer must be communicated to the offeree before it can be accepted”

35
Q

Offer - Communication of an offer Reward Cases

A 
R v Clarke
Williams v Cowardine
Carlill v Carbolic Smokeball Co.Ltd
Esso Petroleum v Customs & Excise
Lefkowitz v GMS
36
Q

R v Clarke

A

Held

  • Must show reliance and consensus ad idem
  • This cased lacked reliance and consensus ad idem
37
Q

Williams v Cowardine

A
  • 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
38
Q

Carlill v Carbolic Smokeball Co.Ltd (reward)

A
  • Did not have to communicate acceptance

- Simply carry out the terms demanded as it was a general unilateral offer

39
Q

Esso Petroleum v Customs & Excise (reward)

A

Lord Simon:

The requirements for a contract is intention, consensus ad idem and reliance on the promise

40
Q

Lefkowitz v GMS (reward)

A
  • Did not have to communicate acceptance

- Simply had to meet the terms demanded

41
Q

Offer - Termination of an offer

A

An offer may be terminated by the offeror expressly or it may be terminated impliedly because of the conduct of the parties

42
Q

Offer - Termination of an offer Sections

A
  • Rejection
  • Acceptance
  • Lapse of time
  • Counter offer
  • Failure of a condition
  • Death
  • 3rd Party revocation
  • Revocation
43
Q

Rejection

A

The refusal of an offer puts an end to an offer

44
Q

Acceptance

A

“Acceptance is the final assent to the terms of an offer”

45
Q

Lapse of Time

A
  • 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
46
Q

Lapse of Time Cases

A

Ramsgate Hotel v Montiefore

Quenerduaine v Cole

47
Q

Ramsgate Hotel v Montiefore

A
  • 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
48
Q

Quenerduaine v Cole

A
  • An offer by telegram indicated an equally expedient mode of acceptance was required
  • Acceptance by post was not to be valid
49
Q

Counter offer (termination) - Hyde v Wrench

A
  • 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
50
Q

Failure of a condition case

A

Financings v Stimson

51
Q

Financings v Stimson

A
  • 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
52
Q

Death Cases

A

Reynolds v Atherton

Bradbury v Morgan

53
Q

Reynolds v Atherton

A
  • If offeree dies it is unlikely that the executors or administrators of the estate can accept on their behalf
54
Q

Bradbury v Morgan

A
  • 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
55
Q

3rd Party revocation case

A

Dickenson v Dodds

56
Q

Dickenson v Dodds

A

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
57
Q

Revocation Cases

A 
Payne v Cave
Bryne v Van Tienhoven
Errington v Errington and Woods
Daulia v Four Millbank Nominees
Shuey v USA
58
Q

Payne v Cave (Revocation)

A

An offer can be revoked anytime before acceptance takes place

59
Q

Bryne v Van Tienhoven

A
  • Revocation must be communicated

- General unilateral contracts are exceptions to this rule

60
Q

Errington v Errington and Woods

A
  • 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
61
Q

Daulia v Four Millbank Nominees

A

You must accept fully

62
Q

Shuey v USA

A
  • 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”

Contract Law (5 decks)

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