Offer & Acceptance - Paper 3 Flashcards
What is the definition of a contract?
A legally binding agreement between two or more parties which is enforceable in court
What are the two types of contract?
Unilateral and Bilateral
What is a unilateral contract?
An agreement to pay in exchange for performance, if the potential performer chooses to act
What is a bilateral contract?
A contract which requires both parties to do something as they both have obligations
What are the four essential elements needed for a contract?
1) Offer
2) Acceptance
3) Consideration
4) Intention to Create Legal Relations
What is the definition of an Offer?
It is a statement of the terms upon which the person making the offer is willing to enter the contract, the terms by which you are prepared to be bound
What is the difference between an offeror and offeree?
An offeror is the person who makes the offer
An offeree is the person to whom the offer is made
What is the ruling from Gibson v Manchester City Council?
An offer must be fully communicated and certain
Which case held that a request for information and a reply to that request is not an offer?
Harvey v Facey
What is an Invitation to Treat (ITT)?
It is not an offer, it is simply an indication of a willingness to start negotiations, you are inviting the other person to make you the offer to accept or reject
What are the three types of ITT?
1) Items on display in a shop
2) Auctions
3) Adverts (in newspapers/online)
What was the decision in Fisher v Bell?
Items on display in a shop are not an offer but an ITT
What was the ruling from BCA v Wright?
An auctioneer makes an ITT and the bidders make offers
Which case established that adverts are an ITT and not an offer?
Partridge v Crittenden
Adverts will be an ITT, unless?
1) The wording of the advert makes it clear that it was intended to be an offer
2) An advert in a unilateral contract can be an offer
3) Adverts to a specific group of people is an offer
What are the five ways an offer can end?
1) Revocation
2) Rejection
3) Counter Offer
4) Lapse of Time
5) Death
What was the ruling from Dickinson v Dodds?
An offer can be withdrawn any time before acceptance, but this must be communicated to the offeree, even by a third party
Which case held there must be a clear rejection that is communicated to the offeree for an offer to end?
Stevenson v McLean
What was the decision in Hyde v Wrench?
A counter offer acts as a rejection of the original offer and creates a new offer to be accepted or rejected
Which case established that an offer will end after a lapse of time?
Ramsgate Victoria Hotel v Montefiore
What happens if the offeror dies?
Acceptance can still take place until the offeree learns of the death. If the offeree dies, then the offer dies
What is the definition of Acceptance?
An agreement to all the terms of the offer, and is valid as soon as it is communicated
What was the ruling in Felthouse v Bindley?
Acceptance can be in any form except silence
Which case established the postal rule?
Adams v Lindsell
What is the postal rule?
Acceptance takes effect at the moment of posting
What was the decision in Entores v Miles Far East?
If the communication arrives out of office hours, it will be communicated at the start of the next working day
