Offer, acceptance and invitation to treat

Question 1

what does consensus in idem mean

Answer 1

• an agreement on the same thing’
• or informally known as ‘a meeting of minds’

Question 2

what creates a contract

Answer 2

the consensus

Question 3

what are the three steps to contract completion

Answer 3

1. invitation to treat (optional)
2. Offer
3. Acceptance

Question 4

what must the acceptance of the offer be to create a contract

Answer 4

must be unqualified

Question 5

what is the mirror theory

Answer 5

offer and acceptance is identical to create the consensus in idem - any variation of the offer kills the original offer

Question 6

what is bargaining

Answer 6

In bargaining the parties will haggle over terms

Question 7

in what terms is meaningful negotiation true

Answer 7

in many pre-contractual situations, like between private persons buying and selling a house, car or text book

Question 8

what is an offer

Answer 8

Indication by a person to another of his willingness to enter into a contract with him on certain terms - can be expressed or implied

Question 9

what is a contract of adhesion

Answer 9

puts the commercial company making the offer in a stronger position than the consumer who can accept or reject, but not negotiate

Question 10

when do contractual negotiations begin

Answer 10

with a general indication of one’s willingness to negotiate - invitation to treat

Question 11

facts of the case Harvey v Facey 1893

Answer 11

• Potential sale of a house in Jamaica (belonging to Facey)
• Communication through a telegraph
• No contract was concluded by the parties - Facey didn’t directly to respond to Harvey asking if he will sell him the house, Facey saying the house was £900 was information, not an offer

Question 12

what was held in Gibson v Manchester City Council 1978

Answer 12

exact wording matters, if there’s any qualification then its not a legal offer

Question 13

how to distinguish offers from invitations to treat

Answer 13

• Treat every case on its merits
• Look at exact words used by parties
• Context

Question 14

what case states that advertisements are invitations to treat

Answer 14

Patridge v Crittenden 1968

Question 15

case facts of Carlill v Carbolic Smoke Ball Co 1893

Answer 15

But, advertisements can be occasionally offers - advertisement placed by a manufacturer can be presumed to be an offer

Question 16

case that held that vending machines are treated as offers

Answer 16

Thornton v Shoelane Parking (1971)