Offer Flashcards
What is an offer?
An expression of willingness to contract on specified terms
What is an offer not?
An invitation to treat
What are examples of invitations to treat?
Shop display/self service
Advertisements
Statements of price
Auctions
Pharmaceutical Society of Great Britain v Boots
Self service/shop displays being an invitation to treat
What happened in the case of Pharmaceutical Society of Great Britain v Boots?
C moved the format of the shop to self service so purchasers would pick up their own medicine
Charged under S18 of the Drugs and poisons act which states that drugs should be dispensed by a pharmacist
Outcome of Pharmaceutical Society of Great Britain v Boots?
The court held the had not token the law as the purchaser made the offer when they present the medicine at the cash desk
Whilst it is on display it is an invitation to treat
Acceptance is made my cashier
Partridge v Crittenden
Advertisements are an invitation to treat
What happened in the case of Partridge v Crittenden?
D advertised birds in a newspaper. He was prosecuted under the Protection of Birds act for ‘offering the sale’ of birds
What was the outcome of Partridge v Crittenden?
His conviction was quashed on appeal because they declared it was an expression of willingness to receive offers. Not an actual offer, therefore it’s an invitation to treat
Exception related to advertisements…
If an advert is unilateral offer then it is considered an offer not an invitation to treat
Carlill v Carblic Smoke Company
Unilateral offers within advertisements are offers not invitations to treat
What happened in Carlill v Carblic Smoke Company?
D advertised that if anyone could use the smoke ball in accordance with their rules and still get influenza they would get £100.
C did this, when he tried to claim the money D said it was a ‘mere puff’
Outcome of Carlill v Carblic Smoke Company…
The court held that a unilateral offer could be made to the world and due to this nature it waives the need for communication of acceptance
If someone accepts it and fulfils contract D must too
British car auctions v Wright
Auctions being an invitation to treat
What happened in the case of British car auctions v Wright?
D was prosecuted for offering a car ‘unworthy of the road’
What was the outcome of British car auctions v Wright?
The prosecution failed. The court held each bid is an offer. The offer is not made my the auctioneer. Acceptance is when he puts down the hammer. The lot price is an invitation to treat - ‘willingness to accept offers’
Harvey v Facey
Statement of price is an invitation to treat not an offer
What happened in Harvey v Facey?
They were discussing a pen for sale. Facey responded to a telegram saying ‘the lowest price is £900’
Harvey claimed he accepted this price then went to sue when Facey would not sell it
What was the outcome of Harvey v Facey?
Court held that stating the lowest price they would accept is an invitation to treat not an offer. Therefore Facey could not have breached the contract
When does an offer end?
Accepted/rejected Revocation Time lapse Conditions aren't fulfilled Withdrawal Death Counter offer
Hyde v Wrench
Counter offer
What happened in Hyde v Wrench?
D offered to sell C a farm for £1000
C offered £950
Wrench rejected and sold to a third party
Hyde tried to accept the first offer and then sued for breach of contract for selling
What was the outcome of Hyde v Wrench?
The £950 offer by Hyde was a counter offer. This cancelled out the original offer, the roles reversed and Hyde became the offeror.
Byrne v Van Tienhaven
Revocation
What is revocation?
When the offer is withdrawn before it is accepted, however it’s withdrawal must be communicated
What happened in Byrne v Van Tienhaven?
D sent a letter making an offer regarding tin plates.
A few days later, he sent a letter withdrawing the offer.
C received the first letter and accepted immediately.
Didn’t receive the second letter for another 8 days.
What was the outcome of Byrne v Van Tienhaven?
The withdrawal of the offer was not communicated properly. The offer was still in place this a contract was formed
Check in book what it says about this and postal rule
Explain lapse of time..
There may be a time limit attached to an offer stating when it must be accepted by
or
The courts may feel an unreasonable amount of time has been left until acceptance so the offer has been terminated
Ramsgate Victoria Hotel v Montefiore
Termination of an offer and lapse of time
What happened in the case of Ramsgate Victoria Hotel v Montefiore?
D offered to buy shares of the hotel in June. C did not release them until November.
C said there had been a breach of contract as they would no longer buy shares
Outcome of Ramsgate Victoria Hotel v Montefiore…
The court held the lapse of time depends on the intention of the parties and nature of subject matter
e.g if it was perishable or likely to fluctuate (like with stocks) then the lapse of time would be shorter
C’s claim failed
Example of an unfulfilled condition terminating offer…
A job offer made upon a reference or CRB check
What happens if offeror/offeree dies?
If the contract doesn’t involve personal services representatives can carry out the agreement
