Offer and Acceptance Flashcards
Define a contract.
An agreement between two parties which imposes rights and obligations which may be enforced by law.
What is an offer?
‘an offer is a willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.’
How does the court aim to look at the evidence of an agreement.
The courts must look through the eyes of a “reasonable man” which ultimately pins it to common sense.
What happens if the terms of an offer are not definite?
It is treated as an “invitation to treat” as opposed to an offer which ultimately acts as a persuasive offer with no legal meaning.
What is an offeror?
The person making the offer
What is an offeree?
The person receiving the offer
Gibson v Manchester CC
Due to the letter’s indefinite nature as well as no price being mentioned, it was treated as an invitation to treat as opposed to being an offer. Therefore, Gibson was under no obligation to sell his property.
Storer v Manchester CC
The court must look at not only the writer’s presumed intentions, but also they must look at the meanings of the words and how they portray the purpose of the contract.
What are the two types of contract?
Bilateral
Unilateral
What is a bilateral contract?
A bilateral contract is a contract that is between two parties and the offer is specific to that offeree
What is a unilateral contract?
A contract where the offer is open for anyone to claim
Carlill v Carbolic Smoke Ball
After posting the offer Mrs Carlill completed all of the terms and aimed to collect her reward but the company argued it was a “mere puff” and not intended to create legal relations. Due to all the terms being completed this was seen as an offer.
Fisher v Bell
Knife in shop window, considered invitation to treat
Pharmaceutical Society of GB v Boots Cash Chemist
Product on shelves amount to invitation to treat
Partridge v Crittenden
Advertisements cannot be offers but instead the offer occurs when someone responds to the advertisement
Lefkowitz v Great Minneapolis Surplus Store
Some advertisements can be offers when they establish a unilateral offer with definite terms such as the “first come, first serve” basis
British Car Auctions v Wright
Sold a vehicle in a unroadworthy condition, presenting an auction is an invitation to treat and the bids are offers
When is an offer terminated?
Acceptance
Refusal
Counter offer
Lapse of Time
Death
Revocation
Counter offer
The original offer is terminated and replaced with a new one with new terms - Hyde v Wrench
Request for further information
A request for further information does not terminate the original offer but merely requests information from the other party - Stevenson v Mclean
Lapse of time
When a considerable amount of time passes from the time of the offer, or if the offeror determines a time restraint, the offer will be terminated - Ramsgate v Montefiore
Death
Offers of a personal nature will end if the offeror dies. If not of a personal nature, the offeror’s estate can honour the offer - Bradbury v Morgan
Revocation
An offeror is at liberty revoke their offer at anytime prior to acceptance.
3rd party revocation
A reliable 3rd party can communicate revocation - Dickinson v Dodds
