Offer and Acceptance

Question 1

Offer

Answer 1

An offer is a statement made by one party, the offeror, which sets out the terms that they agreed to be bound by
Sometimes an offer is only made after an invitation to treat this is a passive conversation which invites another person to make an offer

Question 2

Acceptance

Answer 2

No contract is formed until an offer has been accepted. There must be a valid offer to enable a valid acceptance

Question 3

Offer - an invitation to treat

Answer 3

An indication that one person is willing to negotiate a contract with another, but he or she is not yet willing to make a legal offer

Question 4

Goods on display - invitation to treat not an offer

Answer 4

Simply picking up an item would not be seen as making an acceptance
Display of goods is an invitation to treat
Pharmaceutical society v boots chemist

Question 5

Goods or service advertised in the media

Answer 5

Advertisement is not an offer but an invitation to treat to buy what is advertised
Partridge v critter den

Question 6

Partridge v crittenden

Answer 6

Advertising wild birds
Invitation to treat nit an offer

Question 7

Unilateral offer

Answer 7

Where reward will be laid
Where the claim in the advert is relied upon
Carlill v carbolic smoke ball

Question 8

Carlill v carbolic smoke ball

Answer 8

Bought a medical product that promised to stop flu
Unilateral offer so she was able to sue for breach of contract

Question 9

Offer and counteroffer

Answer 9

If an offered decides they would like to change the terms of an offer
Counteroffer ends the original offer and becomes a new offer
Counteroffer can be accepted or rejected
Hyde v wrench

Question 10

Communication of offers

Answer 10

An offered cannot accept an offer that has not been communicated to them clearly it would be Impossible to accept an offer if the offered has no knowledge of it
Taylor v lair

Question 11

Acceptance

Answer 11

o For a contract to be formed the offer must be accepted by the offeree and that acceptance communicated back to the offeror. This changes an offer into an agreement.

Question 12

Acceptance must:

Answer 12

Mirror the offer
Not change the terms of an offer
Be communicated properly back to the offeror

Question 13

Acceptance must be unconditional

Answer 13

Making enquires about the offer may not amount to a counteroffer and therefore may not be taken as rejecting the original offer
Stevenson v ,McLean

Question 14

Stevenson v McLean

Answer 14

o M offered to sell S some iron and S agreed the price and quantity. So asked for four months of credit instead of paying cash. Hearing nothing from M, s sent a letter of acceptance

Question 15

Communication of acceptance

Answer 15

Must be communicated back to the offeror
Only the offered can make the acceptance
“Silence” doesn’t amount to acceptance

Question 16

Adams v lindsell

Answer 16

o D wrote to c offering wool and asked for acceptance via post. D letter was incorrectly addressed and was late. C accepted the offer but as had already sold to someone else because of the delay. Court that the contract was valid as soon as it was sent.