Offer & Acceptance Flashcards
To make an offer, and offeror must make a what?
- A clear and unequivocal statement that he will regard himself as legally bound to perform his promise if the other party accepts his offer.
What is not an offer? (3)
- Invitation to Treat
- Supply of Information
- Statement of Intention
Invitation of Treat: Example?
- Goods on a store shelf in not an offer, takes place at the till.
- We can return it otherwise
Supply of Information: Example?
- This is how much it is worth, if you make an offer, I may accept it.
Statement of Intention: Example?
- Parties sometimes communicate that they intend to do something.
- the communication is not intended to be binding
- There is no offer
Goods on display in a shop are what kind of offer?
- Not an Offer
- They are an invitation to treat
Are Advertisements offers?
- Generally no
- Invitation to Treat
Advertisement case law? (1)
Partridge v Crittenden
Partridge v Crittenden (1968)
- Hens and cocks for sale in advertisement
- they were protected birds, making it illegal to offer to sell them
Held: - Not guilty
- It was not an offer
- Invitation to treat
Is supplying information an offer?
- No
- Supply of information
Is a Statement of Intention an offer?
- No
- the communication is not intended to be binding, thus there is no offer
What is a Bilateral Contract?
- They are contracts where there is an outstanding obligation on either side
What is a Unilateral Contract?
- A contract where only one party has an obligation from the outset
- ex: Missing cat reward, no obligation to accept, only to pay
Carlill v Carbolic Smoke Ball Co. (1893) (Issue)
- Unilateral Contracts
Carlill v Carbolic Smoke Ball Co. (1893) (facts)
- Carlill purchased a smoke ball to get rid of the flu
- Carlill used it according to the directions
- D offered a reward to anyone that was still sick after using it for so long (£100)
- Carlill sought the reward
Held: - It was a unilateral offer
- Carlill fulfilled the terms and accepted it
Termination of an offer?
- Unless acceptance happens, there is no contract
- Acceptance must occur in order for the contract to be binding
- Offer is still open if these do not happen
Methods of Terminating a Contract? (4)
- Revocation
- Rejection
- Expiry
- Lapse
Termination By Revocation?
- Must be communicated to the Offeree or an intermediary
- Offeree must actually receive the revocation
- Cannot accept if revoked
What if the offeree is not aware of the revocation and accepts the offer?
- revocation is no good
- there is a binding contract
- Offeree must actually receive the revocation
What if the offeree began the act of acceptance for a unilateral offer?
- Cannot be revoked
- Once acceptance has started, cannot revoke the offer
Rejection?
- Offer may be rejected by the offeree
- Expressively or by counter-offer
- If there is a condition in the offer that is not fulfilled, the offer terminates
How can an offeree reject an offer? (2)
- Expressively
- Counter-offer
What happens if a condition in the offer is not fulfilled?
- Offer terminates
Lapse & Death
- Offer may lapse for want of acceptance
- Offeror dies, offer may lapse
Acceptance
- Must be communicated
- There is no contract until offer is accepted
- Revocation cannot take place after offer is accepted
Exception to acceptance? (3)
- Postal Acceptance Rule
- Prescribed mode
- Via Third Party
Acceptance in response?
- Must be in response to the offer
Knowledge of Acceptance?
- Knowledge of the offer is required
- Not sufficient that the wishes of the parties simply coincide through accident
Communication of acceptance?
- Acceptance must be communicated to the offeror
- Offer cannot be accepted by silence
Exception to the need for communication?
case?
- Where the offeror has waived the requirement for communication
- Carlill v Carbolic Smoke Ball Co.
Postal Acceptance Rule?
- Acceptance by post takes effect where and when letter is posted (Dispatch Rule)
- Exception to rule that acceptance must be communicated
- Risk of rule falls on offeror
- Only applies if reasonable for offer to be accepted by post
Telegraph Acceptance Rule
- Where it is reasonable to use telegraph
- Acceptance takes place when the acceptance is handed to the person authorised to take telegraphs
Telexes and telephones?
- Postal rule does not apply to these
- They are a form a instantaneous communication
- Not an exception