Offer & Acceptance

Question 1

What is an offer?

Answer 1

A promise showing a willingness to contract if accepted an enforceable contract exists

Question 2

Who is the offeror?

Answer 2

Person making the offer

Question 3

Who is the offeree?

Answer 3

The person whom offer is made to

Question 4

What must an offer be? Case to prove this ?

Answer 4

Clear + definite in it’s terms

- Gibson : “might be prepared to” is an invitation to treat NOT and offer

Question 5

What is an invitation to treat?

Answer 5

An indication that a person is willing to negotiate a contract but is not yet making an offer

Question 6

Examples of invitation to treat (3) and their cases (5)

Answer 6

1. Advertisement :
   - Carlill: unilateral offer
   - Partridge: invitation to treat
2. Lots at an auction :
   - BCA v Wright: invitation to treat
3. Goods in a shop window :
   - Fisher v Bell: display = invitation to treat
   - Boots: backs up fisher

Question 7

What is a request for information?

Answer 7

Not an offer or acceptance

- Harvey v Facey: enquiry = question

Question 8

Who can make an offer?

Answer 8

Anybody. Including employees on behalf of the company - Thornton

Question 9

Who can the offer be made to? (3)

Answer 9

Anyone:

• named individual: Gibson
• group of people: Hoover
• world at large: Carbolic smoke ball

Question 10

When does an offer start?

Answer 10

When it is communicated to the offeree - Taylor v Laird

Question 11

When does an offer end? (5)

Answer 11

• revocation
• rejection
• death
• lapse of time
• acceptance

Question 12

How is revocation used?

Answer 12

Offeror must communicate revocation - Routledge v Grant

Question 13

Ways to revoke (4)

Answer 13

1. Time limit
2. Expiry of reasonable time - Stevenson v McLean
3. Publishing same way offer was made
4. Doesn’t have to be the offeror that communicated but a ‘reliable person’ - Dickinson v Dodds

Question 14

How can you reject an offer? (3)

Answer 14

1. Rejection: must be communicated to offeror
2. Enquiry: response to question
3. Counter offer: a rejection of original offer by offeree who proposes a new offer with altered terms - Hyde v Wrench (can no longer accept original offer)

Question 15

What happens if someone dies?

Answer 15

• If offeree dies: offer cannot be accepted but a counter offer could be made
• If offeror dies: offer can still be accepted by executors unless it was for a personal service

Question 16

How does a lapse of time end the offer?

Answer 16

Must be a reasonable time - Ramsgate v Victoria hotel

Question 17

How does an acceptance end the offer?

Answer 17

There is now a legally binding contract offer is over

Question 18

What is acceptance?

Answer 18

A final & unconditional agreement to all the terms of the offer

Question 19

How do you accept an offer? Examples of acceptance (3)

Answer 19

Can be in any form as-long as communicated to offeror
1. Cannot be accepted by silence- Felthouse v Bindley

2. Offeror may specify method for acceptance - Yates
3. Normal means of communication eg. Text, email, letter, phone

Question 20

When does acceptance start? (3)

Answer 20

1. Acceptance by conduct
2. Acceptance by post
3. Acceptance by electronic communication

Question 21

What is acceptance by conduct? Cases (2)

Answer 21

If either party starts to perform the contract they have accepted

1. Carbolic smoke ball
2. Reveille v Anotech

Question 22

What/ how is acceptance by post?

Answer 22

Must follow postal rules

Question 23

What are the postal rules? (3)

Answer 23

1. Rules only apply if post is the usual of expected means of communication
2. Letter must be properly addressed and stamped
3. The offeree must be able to prove the letter was posted

IF RULES APPLY ACCEPTANCE TAKES PLACE THE MOMENT THE LETTER IS PROPERLY POSTED- Adams

Question 24

What / how is acceptance by electronic communication?

Answer 24

Acceptance occurs when offeror is aware - Thomas v Gander