Offer & Acceptance Flashcards
Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256
In unilateral contracts, performance of the terms and acceptance can occur at the same time.
Offers are defined as “sincere statements”.
The detailed language used and claim that the deposit was in a reputable bank showed it was a sincere statement and not mere puffery.
Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401
Goods on display are an invitation to treat, not an offer. The purchaser then chooses the articles and the offer is made at the pay desk where the shopkeeper can accept the offer (or deny it for any reasonable reason, e.g. out of stock).
Once the shopkeeper accepts the customer’s offer to buy, then the contract is complete.
Byrne & Co v Van Tienhoven & Co (1880) LR 5 CPD 34
A person who has accepted an offer not known to him to have been revoked, shall be in a position to act upon the footing that the offer and acceptance constitute a binding contract on both parties.
Knowledge of revocation is essential.
Dickenson v Dodds (1876) 2 Ch D 463
For a contract to be formed it must appear that the two minds were at one, at the same moment of time, that is, there was an offer continuing up to the time of acceptance. If the offer was discontinued at the time of acceptance, then the acceptance comes to nothing.
Plaintiff knew Dodds was not of the same mind
AGC (Advances) Ltd v McWhirter (1977) 1 BPR 9454
An auction is an invitation to treat. The vendor can still refuse to sell to the highest bidder. The bid is the offer.
Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council [1990] 1 WLR 1195
The invitation to submit a tender was usually no more than an offer to receive bids but in this circumstance, examining the behaviour of the parties created clear intention to create a contract and therefore the failure to consider the plaintiff’s application made them liable.
There was a duty to consider all the tenders.
Empirnall Holdings v Machon Paull (1988) 14 NSWLR 523
The conduct of the offeree may indicate that an offer has been accepted even if they have been silent in relation to accepting that offer.
R v Clarke (1927) 40 CLR 227
The intention behind the performance of the terms of the offer is important to determining acceptance and whether a binding contract was formed. The intention must have been to complete the terms with the reward specifically in mind for acceptance of the offer to occur. It is not enough to coincidentally meet the conditions and claim the reward without having intended to do so initially.
Butler Machine Tool Co Ltd v Ex-Cell-O Corp [1979] 1 All ER 965
Counteroffer kills the original offer. Terms and conditions of original offer no longer apply after counteroffer
Bressan v Squires [1974] 2 NSWLR 460
The general rule is that a contract is not completed until acceptance of the offer is actually communicated to the offeror, and a finding that a contract is completed by posting of a letter of acceptance cannot be justified unless it is to be inferred that the offeror contemplated and intended that his offer might be accepted by the doing of the act.
Exception to the general rule of responding in the same form the offer was delivered and the postal rule. If there are circumstances where expediency is specifically required (e.g. time limit, where direct delivery is required), you can respond with a different form of communication.
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft [1983] 2 AC 34
The postal rule does not apply to instantaneous forms of communication in cases where the business practices and intentions of each parties suggests so.
Electronic Transactions Act s13A is the rule
