Offer and Acceptance Flashcards
what are the 4 key elements of a valid contract
- Offer
- Acceptance
- Consideration
- Legal Intent
what are the two types of contract
- Bilateral, when two people promise something
2. Unilateral, when one person makes a promise on the condition that the other party performs an act of some sort
who are the people involved in a contract
offeror= person making the contract offeree= person receiving the offer
what are the five situations that might look like an offer but actually aren’t (INSAT)
Invitations to treat Negotiations Statements of price Auctions Tenders (INSAT)
what is an invitation to treat
they are not offers but invitations for someone to make an offer
what are the two scenarios that are always an invitation to treat
goods displayed in a shop window, self service displays
what is a case for invitations to treat in a shop window
Fisher, flick knives for displayed in a shop window however under the Offences weapons acts 1959 they were illegal. However it was an invitation to treat not an offer for sale therefore the shopkeeper was not guilty
what is the case for invitations to treat involving self service displays
Boots, certain medicines could only be sold by a registered pharmacist. Boots had these medicines on self service display, no pharmacist was present. However this was not illegal because the courts decided that the offer was made at the till (where there was a pharmacist), not at the shelf.
what are two more invitation to treat scenarios
Adverts in magazines or newspapers, wording in letters can be ITT and not an actual offer
what is a case for adverts in a magazine
Partridge. it was an offence to sell wild birds. an advert offering wild birds for 25 shillings each was not an offer but an invitation for someone to go to the advertiser and make an offer. This is different from reward adverts which would be a unilateral offer.
what is a case demonstrating the difference between adverts and reward offers.
Thee carbolic smokeballs company. The company advertised smokeballs that would prevent influenza in one part of the advert (this part would be an ITT). In the other part of the advert the company offered a £100 reward to anybody whom is not cured by the smokeballs (this part would be an offer). this case proved that you could have offers to the world.
what is the case involving wording in letters being ITT
Gibson. gibson was sent a letter by thee council inviting him to apply to buy his council house. he completed the application and sent it in. The council changed their policy and were no longer willing to sell the house. gibson sued for breach of contract. He was not succesful because there was no contract. The councils letter was an ITT and his application form was the offer. the offer was therefore not accepted because the council changed their policy.
what are the rules around negotiations
counter-offers will undo the original offer
what is case for statements of price
Harvey, h wanted to buy f’s farm.. h asked what the lowest price would be. F answered £900, this was not an offer but merely a statement of price therefore could not be accepted by H.
what is the case explaining the rules for auctions
Payne, the bid is the offer,, the hammer falling is the acceptance. the bid can be withdrawn at any point until the hammer falls
what is a case for adverts for auctions
harris. harris saw an advert for a furniture auction and travelled there. when he arrived the furniture had been withdrawn from the auction. he sued for breach of contract. he was unsuccessful because adverts for auctions are always invitations to treat
what is an auction with reserve
an auction where if the bidding does not reach a certain price then the owner will withdraw, even if the hammer falls by accident there will not be a contract.
what is an auction with reserve
an auction where if the bidding does not reach a certain price then the owner will withdraw, even if the hammer falls by accident there will not be a contract.
what is an auction without reserve
there is no minimum sale price. the call for bid is the offer and the bid is the acceptance
what is a case for auctions without reserve
Barry. There was an auction without reserve where the highest bid was extremely low. Auctioner refused the sale and sold the items for a higher price elsewhere. he was sued for breach off contract. Barry was successful because the courts said that the auctioneer was in a contract with mr barry to sell the item for the highest bid.
what is a tender
a tender is when one party needs some work doing or goods delivered. Companies send their ‘bids’’ his is the offer. The party then chooses which tender to go with, this is the acceptance.
how long can an offer last for
an offer can only be accepted when it is open. once it had ended it can no longer be accepted. an offer commences when it is communicated to the offeree.
what is a a case for offers being communicated
Taylor. Taylorr was employed as captain of a ship. during a voyage he took on the role of a crew member as weell. he sought to be paid for this alternative role. his employer did not have to pay him because there had been no contract because claimant had not communicated the offer
what is a case that shows how important timing can be in a contract
stevenson. D offered to sell an iron to C, saying that sale could only be made within a short timeframe. C immediately responded asking if he could pay in installments rather than at once. D did not respond to this enquiry and pursued an alternative buyer. Without a response, c accepted original offer. when d refused to recognise contract c sued them. c was successful because contract had been formed
what are the three rules for an offer to be valid
- offer must be certain
- offer must be communicated
- offer must not have been terminated
what is a case for the terms of an offer being certain
Guthing. Offer to buy a horse for a certain amount. added this term ‘if the horse is lucky i will give you an extra £5’. This extra offer was too vague and therefore could not be valid. an offer that has uncertain terms will not b a valid offer
how can an uncertain offer be made certain
it can be clarified
what are the five ways an offer can be clarified (TIPCO)
Trade useage Implied by statute Previous dealings Contract Officious bystander rule
what is a case for the offer having to be communicated (unilateral)
Williams. Brother of deceased offers £20 for information. C didnt give information when she was initially questioned but did after she was beaten by the murderer. Although her motive might have been to satisfy her own interests, this was irrelevant, she was allowed the £20 reward.
what is a case that contrasts williams
Clarke. clarke was a prisoner who gave evidence on the condition that he would receive a reward. The crown refused to give him the reward. courts held that one cannot accept an offer that they do not know about or they have forgotten about.
what five things can ‘terminate’ an offer
- revocation
- counter offer
- death
- lape of time
- rejection
what are the four rules of revocation
- must be revoked before acceptance has taken place
- the offeror must communicate the revocation to the offeree before acceptance
- a third party can revoke an offer on the behalf of the offeror given that they are a reliable source
- for unilateral offers, the offer cannot be withdrawn once the offeror has started the required act
what is a case for revocation before acceptance
grant. goffers house for sale, saying it would remain open for 6 weeks. when g told r that he no longer wished to sell, this was a valid revocation so r could not accept offer even though it was in the 6 weeks.
what is a case for a third party revoking offer
dodds. when a reliable person known to both parties revoked dodd’s offer to sell house, this was valid.
what is the case for unilateral contracts withdrawal
errington. father bought a house for son, house was put solely in fathers name. when father had died, mother inherited house. dad had promised son could have house as long as he payed mortgaged payments. son had already started this act so the contract could not be revoked.
what is the case for revocation by counter offer.
Hyde.. d offered to sell farm for £1000. c made counter offer of £950 which d refused. c then sought to buy for the original offer of 1000. d refused to sell and c brought action for specific performance. there was no contract, counter offer revoked original offer
what are the rules on revoking by death
- if offeree dies (person receiving) offer automatically lapses
- if offeror dies and offeree is not aware of death and has accepted, offeror may still be bound (unless contract requires the personal service of the offeror)
how does rejection revocation work
offeree simply says no
what is a case for revocation by lapse of time
Ramsgate victoria hotel. d offered to purchase shares in claimants company at a certain price. 6 months later claimant agreed by which time the value of the shares had fallen. d had not withdrawn offer but refused to go through with sale. courts said the offer was no longer open due to the nature o the matter the contracted offer had lapsed.
what are the rules for communication of unilateral offers
if offeree is not aware of award, they are not entitles to it
what are the rules for communication of unilateral offers
if offeree is not aware of award, they are not entitles to it
