Offer and Acceptance Flashcards
What is the definition of an offer?
It is the starting point of a contract, it is a statement made by the offeror of the terms of the offer to the offeree.
Who can make an offer and what must the offer be?
An offer can be made by anyone including individuals and businesses.
Gibson v Manchester Council - An offer must be definitive in its terms. Phrases such as might be prepared to do not amount to an offer.
What are the two types of offer?
Bilateral - Promise made by both parties.
Unilateral - Obligation only on the offeror.
What is an invitation to treat?
The law works to differentiate the two, An invitation to treat is an indication that one person is willing to negotiate a contract but not make a legal offer.
Invitation to Treat: Advertisement?
Partridge v Crittenden, Generally an advertisement is not an offer it is an invitation to treat.
Exception - Carlill v Carbolic Smoke Ball - There is an exception in unilateral contracts.
Invitation to Treat: Shop Window?
Fisher v Bell - Goods in a shop window or shelf is an invitation to treat.
Invitation to Treat: Lots at an auction?
British Car Auctions v Wright - Lots at an auction are an invitation to treat. The bidder has to make a bid which the auctioneer accepts.
Invitation to Treat: Request for Information?
Harvey v Facey - A request for Information is an invitation to treat not an offer.
Length of an Offer?
Stevenson v MacLean - An offer can only be accepted whilst it is open, an offer comes into existence when it is communicated by the offeree.
Ending an offer - Revocation: Communicated?
Byrne v Van Tiehoven - Must be properly communicated to the offeree and cannot be withdrawn without warning.
Ending an offer - Revocation: Any time?
Routledge v Grant - An offer can be revoked by the offeror any time before acceptance.
Ending an offer - Revocation: Third Party?
Dickinson v Dodds - The Revocation can come from the offeror or a reliable third party, there is not definition for reliable party.
Ending an offer - Rejection?
Hyde v Wrench - Once an offer is rejected it cannot be accepted by the person wanting to accept the offer, the rejection ends the offer.
A counter offer also ends the original offer.
Ending an offer - Lapse in Time?
Ramsgate v Montefoire - If a fixed period of duration is stated the offer will end after this time, if there is not a fixed period the courts will decide upon a reasonable time.
What are the two other methods of ending an offer?
Death and Acceptance.
Acceptance Definition?
Acceptance must be positive and accept the whole offer, it can be accepted in any format.
In order to accept the offeree must:
1) Mirror the Offer.
2) Not change the terms of the offer.
3) Be communicated properly back to the offeror.
Felthouse v Bindley - Silence is not a format of acceptance.
Acceptance by Conduct?
Carlill v Carbolic Smoke Ball - Once the conduct required in the offer is done then the contract has been accepted.
Acceptance by Post: Rules?
Adams v Lindsel - As soon as a letter is in the post box then this amounts to the acceptance of the offer.
Acceptance by Post: Not delivered?
Household Insurance v Grant - If the letter is lost an never delivered this does not effect the validity of acceptance.
Acceptance by Post - Exceptions: Normal?
Henthorn v Fraser - The Postal rule only takes effect where it would be the normal way of working between the parties.
Acceptance by Post - Exceptions: Excluded?
Holwell Securities v Hughes - That it will not take effect if it has been excluded by the parties.
Acceptance by Post - Exceptions: Mistake in Posting?
Getreid v Contimar - It will not take place when there is a mistake in posting, it is the fault of the offeree.
Electronic Methods of Communication: Aware?
Lord Denning in Entores v Miles Far East - Held that acceptance only happens when offeror is aware of acceptance.
Electronic Methods of Communication: Out of hours?
Brinkibon v Stahag - Out of hours communication from the offeree are only accepted once the offer is reopened. Courts adopted sound business practice rule.
Electronic Methods of Communication: Notice of Acceptance?
Article 11 of the Electronic Commerce Regulations 2002 - Acceptance only happens when the buyer has received notice from the seller/provider of acceptance.
