Offer & Acceptance (2) Flashcards
What is objective theory?
When 3rd party looks into contract through a perspective, observing whether the contract has been made (not the offeror or acceptor)
What is an invitation to treat?
Prior to the actual contract being made, inviting the party to make an offer (lack in clarity regarding an intention to be bound) (e.g., advertisements, auctions)
What is the general rule for advertisements?
- Amount to mere invitations to treat
- Are not legally bound, they only “call to product” for customers
What is a unilateral contract?
- Refers to a situation where ads can be seen as an offeror
- Acceptance takes place by offeree doing the requested act
CARLILL VS CARBOLIC SMOKE BALL CO [1893] CASE: CS company claims smoke can cure influenza and if not, you can receive a £100 reward. Carlill followed instructions but influenza got worse. The company rejected her remarks, claiming it’s an ITT. How did Carlill’s lawyers respond?
The ad was not ITT due to instructions being given and being a unilateral contract. The advertisement was an offer, and no further negotiation or bargaining was intended.
LEFKOWITZ V GREAT MINNEAPOLIS SURPLUS STORE, INC CASE: Ad said many coats available, state the price with a first come first serve basis. Shop then tells Lekowitz that this was only an invitation to treat. What did his lawyers claim?
The price and first come first serve basis is already an offer. The defendant had no right to impose conditions on the contract which were not stated in the ad (previous terms were clear and definite)
Define the term ‘Acceptance’.
An unqualified expression of assent to the terms proposed by the offeror.
What are some of the requirements regarding acceptance?
- Must be communicated to offeror (until no contract made)
- Offer can be revoked only prior to, not after acceptance is communicated
- Offer on its own does not lead to contractual liability
- If offeror specifies some particular method of acceptance
- Exceptions: postal rule, prescribed mode, via third party
Is silence considered acceptance?
No, as acceptance must be communicated (takes place from the offeree themselves)
[Exception when offered indicates offer with a given date and time themselves]
An exception to real communication is the postal rule. How is it different?
Acceptance takes place when acceptor posts letter of acceptance inside the mailbox.
What are some of the issues of using the postal rule?
- What if the letter never arrives?
- What is Mia’s dressed?
- Offeror may have period of time of ignorance
- Offeror may have cancelled offer and receive acceptance after a few days later
- Is it objectively reasonable?
Give examples of when an offer is terminated.
- Revocation by offer
- Termination by counter-offer or other rejection by offeree
- Termination by lapse of time
- Failure of a condition subject to which offer was made
- Death of offeror (can be argued death doesn’t terminate an offer)
When does acceptance take place in electronic communication?
When offeror receives message of acceptance
[Lord Wilberforce argues that this can depend on various circumstances]
