Offer & Acceptance Flashcards
What is an offer?
A promise showing a willingness to contract if accepted an enforceable contract exists
Who is the offeror?
Person making the offer
Who is the offeree?
The person whom offer is made to
What must an offer be? Case to prove this ?
Clear + definite in it’s terms
- Gibson : “might be prepared to” is an invitation to treat NOT and offer
What is an invitation to treat?
An indication that a person is willing to negotiate a contract but is not yet making an offer
Examples of invitation to treat (3) and their cases (5)
- Advertisement :
- Carlill: unilateral offer
- Partridge: invitation to treat - Lots at an auction :
- BCA v Wright: invitation to treat - Goods in a shop window :
- Fisher v Bell: display = invitation to treat
- Boots: backs up fisher
What is a request for information?
Not an offer or acceptance
- Harvey v Facey: enquiry = question
Who can make an offer?
Anybody. Including employees on behalf of the company - Thornton
Who can the offer be made to? (3)
Anyone:
- named individual: Gibson
- group of people: Hoover
- world at large: Carbolic smoke ball
When does an offer start?
When it is communicated to the offeree - Taylor v Laird
When does an offer end? (5)
- revocation
- rejection
- death
- lapse of time
- acceptance
How is revocation used?
Offeror must communicate revocation - Routledge v Grant
Ways to revoke (4)
- Time limit
- Expiry of reasonable time - Stevenson v McLean
- Publishing same way offer was made
- Doesn’t have to be the offeror that communicated but a ‘reliable person’ - Dickinson v Dodds
How can you reject an offer? (3)
- Rejection: must be communicated to offeror
- Enquiry: response to question
- 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)
What happens if someone dies?
- 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
How does a lapse of time end the offer?
Must be a reasonable time - Ramsgate v Victoria hotel
How does an acceptance end the offer?
There is now a legally binding contract offer is over
What is acceptance?
A final & unconditional agreement to all the terms of the offer
How do you accept an offer? Examples of acceptance (3)
Can be in any form as-long as communicated to offeror
1. Cannot be accepted by silence- Felthouse v Bindley
- Offeror may specify method for acceptance - Yates
- Normal means of communication eg. Text, email, letter, phone
When does acceptance start? (3)
- Acceptance by conduct
- Acceptance by post
- Acceptance by electronic communication
What is acceptance by conduct? Cases (2)
If either party starts to perform the contract they have accepted
- Carbolic smoke ball
- Reveille v Anotech
What/ how is acceptance by post?
Must follow postal rules
What are the postal rules? (3)
- Rules only apply if post is the usual of expected means of communication
- Letter must be properly addressed and stamped
- 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
What / how is acceptance by electronic communication?
Acceptance occurs when offeror is aware - Thomas v Gander
