Offer and Acceptance Flashcards
- What is an Offer?
An Offer is a statement of the terms upon which a person is prepared to be bound by a contract. It is made by the Offeror to the Offeree.
- A Bilateral Offer is…
If Relevant In Exam:
A Bilateral Offer requires both parties to do something in a very clear way, for example an offer to pay money in return for goods (Taylor v Laird).
- A Unilateral Offer is….
If Relevant In Exam:
A Unilateral Offer requires just the Offeror to do something, with no obligation on the Offeree to do anything, for example offering a reward for finding a lost cat (Carlill v Carbolic Smoke Ball).
- An Invitation to Tender is classed as a unilateral offer rather than…
If Relevant In Exam:
An Invitation to Tender is classed as A Unilateral Offer rather than An Invitation To Treat, so the lowest bid must be accepted and all tenders must be considered. (Blackpool and Fylde Aero Club v Blackpool BC).
Other examples of unilateral offers are auctions without reserves (as there is only one outcome).
- An Invitation to Treat is not an offer…
If Relevant In Exam:
An Invitation to Treat is not an Offer and so cannot be accepted. It is merely an indication that one person is willing to negotiate a contract, encouraging A Bilateral Offer from another.
Examples are: An Advertisement (Partridge v Crittenden), Goods on Display (Fisher v Bell), An Auction with a Reserve (British Car Auctions v Wright) and Giving Information in Response to a Request, for example stating the price of something (Harvey v Facey).
- An offer must be communicated…
An Offer must be communicated to the Offeree (ie. The Offeree knows about it) - Taylor v Laird.
- For An Offer to remain open…
**If Relevant In Exam: **
For An Offer to remain open until a particular date/time, the Offeree must give consideration to the Offeror, such as a deposit (Routledge v Grant).
- An Offer will most usually end with an…
An Offer will most usually end with a Rejection or an Acceptance. It can also end with a Counter-Offer (Hyde v Wrench), or through Revocation (withdrawal) - Byrne v Van Tienhoven.
It can end through a lapse of time (Ramsgate Victoria Hotel v Montefiore: ’reasonable’ / 4 months), and through death of the offeree (or offeror if the Offer is to perform a personal service (eg - cleaner).
- If An Offer ends through Revocation…
If Relevant In Exam:
If An Offer ends through Revocation, it must be communicated before Acceptance, either by the Offeror or a third party, (Dickinson v Dodds).
However, if there is a Unilateral Offer, Acceptance takes place on full performance (Errington v Errington and Woods), and so Revocation after this has commenced is not possible.
- If a party is aware that goods have been sold…
If a party is aware that goods have been sold, this also counts as Revocation.
- The Acceptance must ‘mirror the offer’…
**(After Applying, Only Discuss If There has Been A Valid Acceptance) **
a. The Acceptance must* ‘mirror the offer’* ie. reflect it exactly without modifications. It must be unconditional and communicated to the Offeror by positive conduct and not silence (Felthouse v Brindley).
b. Where Acceptance is required to be made in a certain way, it will generally be sufficient if it is made in any other way, as long as it does not disadvantage the Offeror (Manchester Diocesan Council v Commercial and General Investments)
- Acceptance can also be communitcated tthrough…
**If Relevant In Exam: **
Acceptance can also be communicated through conduct. (Brogden v Metropolitan Railway).
- An Exception under ‘the postal rule’…
**If Relevant In Exam: **
An exception is under ‘The Postal Rule’ where Acceptance is communicated at the time of posting, not when the Offeror receives it, (Adams v Lindsell, Byrne v Van Tienhoven).
It does not need to arrive, but The Postal Rule will not apply if the Offeree makes a mistake in posting (Getreid v Contimar). The Postal Rule can be excluded by the agreement of the parties.
- The Postal Rule does not apply to…
If Relevant In Exam:
The Postal Rule does not apply to Acceptance by electronic methods. Acceptance takes place when the Offeror receives it, although the law is unclear and the exact time of Acceptance depends on sound business practice and what is the reasonable expectation of the parties (Brinkibon v Stahag Stahl).
(Apply Here)
- An Offer can be accepted even if the claimant was…
If Relevant In Exam:
An Offer can be accepted even if the claimant was unaware the offer existed (Gibbons v Proctor).
(Apply Here)
