Offer and Acceptance Flashcards
Definition of Offer
An offer is a statement of intent by the offeror to be legally bound by the terms of the offer if it is accepted by the offeree.
Invitation to Treat
Goods on a shop shelf
Goods in a shop window
Statements of price
Auctions
Advertisements
Explain Unilateral Offer with a case
If a person places an advertisement promising to pay in return for a course of action then he/she is bound by this promise (offeree does not have to accept the offer, only perform the required course of action) (Carlill v The Carbolic Smoke Ball).
Carlill v The Carbolic Smoke Ball applies to what offer principle?
Unilateral offer
Communicated to the offeree
An offer must be communicated to the offeree.
Taylor v Laird applies to what rule on offers?
Can be made to one person or the whole world
Explain the rule that Offer terms must be certain
If the words of the offer are too vague then the parties might not know what they are contracting for and therefore shouldn’t be bound.
Guthing v Lynn applies to what rule on offer?
Offer terms must be certain
What are the four ways a person can terminate an offer?
The offer being accepted
The offer is revoked and the revocation is communicated to the offeree before the offer has been accepted
The time of accepting the offer has lapsed (the time limit will be stated in the offer)
Reasonable time has elapsed since the making of the offer
The rules about Offer and death
Offeree dies - offer lapses
Offeror dies (and offeree doesn’t know) - offer remains open
Offeror dies (and offeree knows) - offer is terminated
Explain the rule than an acceptance must be communicated to the offeror
Acceptance of the offer must be a positive act and cannot be done through silence.
Felthouse v Bindley applies to what rule on acceptance?
Acceptance must be a positive act
Explain the exceptio to the rule that Acceptance can be in any form
However, if the offer states that acceptance must be done in a specified way then it must be done in that way for it to be valid acceptance.
Yates v Pulleyn applies to what rule on acceptance?
Excpetion to the rule that acceptance can be in any form
Explain the rule of Acceptance must be unconditional
The acceptance must be on the same terms as the offer. If the offeree tries to change some of the terms of the agreement then this will become a counter offer rather than an acceptance. A counteroffer will terminate the original offer.
