Offer and Acceptance

Question 1

Define a contract.

Answer 1

An agreement between two parties which imposes rights and obligations which may be enforced by law.

Question 2

What is an offer?

Answer 2

‘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.’

Question 3

How does the court aim to look at the evidence of an agreement.

Answer 3

The courts must look through the eyes of a “reasonable man” which ultimately pins it to common sense.

Question 4

What happens if the terms of an offer are not definite?

Answer 4

It is treated as an “invitation to treat” as opposed to an offer which ultimately acts as a persuasive offer with no legal meaning.

Question 5

What is an offeror?

Answer 5

The person making the offer

Question 6

What is an offeree?

Answer 6

The person receiving the offer

Question 7

Gibson v Manchester CC

Answer 7

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.

Question 8

Storer v Manchester CC

Answer 8

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.

Question 9

What are the two types of contract?

Answer 9

Bilateral

Unilateral

Question 10

What is a bilateral contract?

Answer 10

A bilateral contract is a contract that is between two parties and the offer is specific to that offeree

Question 11

What is a unilateral contract?

Answer 11

A contract where the offer is open for anyone to claim

Question 12

Carlill v Carbolic Smoke Ball

Answer 12

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.

Question 13

Fisher v Bell

Answer 13

Knife in shop window, considered invitation to treat

Question 14

Pharmaceutical Society of GB v Boots Cash Chemist

Answer 14

Product on shelves amount to invitation to treat

Question 15

Partridge v Crittenden

Answer 15

Advertisements cannot be offers but instead the offer occurs when someone responds to the advertisement

Question 16

Lefkowitz v Great Minneapolis Surplus Store

Answer 16

Some advertisements can be offers when they establish a unilateral offer with definite terms such as the “first come, first serve” basis

Question 17

British Car Auctions v Wright

Answer 17

Sold a vehicle in a unroadworthy condition, presenting an auction is an invitation to treat and the bids are offers

Question 18

When is an offer terminated?

Answer 18

Acceptance
Refusal
Counter offer
Lapse of Time
Death
Revocation

Question 19

Counter offer

Answer 19

The original offer is terminated and replaced with a new one with new terms - Hyde v Wrench

Question 20

Request for further information

Answer 20

A request for further information does not terminate the original offer but merely requests information from the other party - Stevenson v Mclean

Question 21

Lapse of time

Answer 21

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

Question 22

Death

Answer 22

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

Question 23

Revocation

Answer 23

An offeror is at liberty revoke their offer at anytime prior to acceptance.

Question 24

3rd party revocation

Answer 24

A reliable 3rd party can communicate revocation - Dickinson v Dodds