Offer & Acceptance Flashcards
what is an offer
an expression of willingness to contract on certain terms, made with the intention that it shall be binding as soon as accepted by the person to whom it is addressed
Goods on display eg on the shelves at the supermarket: offer or invitation to treat
invitation to treat
Goods advertised [newspaper, commercial or website] Offer or invitation to treat?
Invitation to treat
Is an advert of a reward a offer or invitation to treat?
Offer
What is a bilateral contract?
A promise in return for a promise
What is a unilateral contract?
One party makes a promise (promise to pay a reward) (auction)
When is an offer accepted at an auction?
When the auctioneers gavel goes down, that is the acceptance of the last bid which was the offer.
When the auctioneer is inviting bids, is this an invitation to treat or an offer?
Invitation to treat
What is a reserve price ?
A min price agreed for which the auctioneer will not sell the property below
‘Without Reserve’ means
That the objects are being sold to whoever makes the highest bids
Damages for auctioneers not accepting the highest bids?
Loss of expectation
Q: Is a company obligated to accept any particular tender?
A: Generally, no. The invitation to submit tenders is considered an invitation to treat, and each tender is an offer to do the work.
What happens if a company promises to accept the lowest tender or to consider all conforming tenders?
A: If the company makes such a promise, it creates an offer of a unilateral contract. If the company does not comply with its promise, it may be liable for breach of an implied promise and breach of contract.
For there to be acceptance there must be:
Communication by the offeror by words or conduct
When can silence amount to acceptance?
If its coupled with conduct that signifies acceptance [if you dont hear from me by 5pm i have accepted the deal] but on its own silence cannot bind a party.
What happens if the offeree provides a ‘counter offer’ ?
This destroys the original offer and represents a new offer that the other party is free to accept or reject.
What is the postal rule?
Letter of acceptance is effective when posted even if lost
When does the postal rule apply
- reasonable to use post [date to accept wasnt nearby]
- properly addressed, stamped and posted letter
- postal rule hadnt been excluded
How can an offer be terminated?
Rejection [counter offer], Revocation [unless offeree gave something in return] , Lapse of time
Can an offer be revoked before acceptance?
Generally, an offer may be revoked (withdrawn) any time before acceptance, even if the offeror promised to keep the offer open for a certain period of time
Is there an exception to the rule that an offer can be revoked before acceptance?
es, the exception is if the offeree gave something in return for the promise to keep the offer open. For example, if the offeree paid the offeror for the privilege of having a specific period of time within which to accept, the offer must be kept open for the agreed time.
What must happen for revocation to be effective?
Communicated by the offeree
Revocation by email effective when
The email should have been read
