offer and acceptance Flashcards
offer
a proposal or promise showing a willingness to contract on firm and definite terms
what is a contract
A promise or set of promises which the law will enforce.
For a contract you need offer and acceptance.
An offer is usually the starting point of a contract.
Invitation to treat
an indication that one person is willing to negotiate a contract with another but is not yet willing to make a legal offer.
Request for information
– a general enquiry e.g. as to price.
A bilateral contract
both the offeror and the offeree are required to do something
A unilateral contract
an agreement to pay in exchange for a performance, if the potential performer chooses to act
rejection
the offeree refuses the offer – this ends the offer.
counter offer
a response to an offer which makes a firm proposal that materially alters the terms of the offer.
acceptance
final and unconditional agreement to all the terms of the offer.
how can offers be made
Offers can be made by a person, partnership, company, or a machine.
Thornton v Shoe Lane Parking
ways an offer can end
Rejection
Counteroffer
Lapse of time – either fixed duration of offer stated OR “a reasonable time” see Ramsgate Victoria Hotel.
Death
'’OK I’ll give you 1750’’ is an example of?
a counter offer NOT acceptance
Acceptance must be positive and unqualified i.e. not “yes but…” or “yes if…”
methods of communication (postal rule)
Postal rule (Adams v Lindsell):
1.The rule only applies if post is the usual and expected means of communication
2.The letter must be properly addressed and stamped
3.The offeree must be able to prove the letter was posted.
The effect of this is acceptance takes place the moment the letter is posted.
methods of communication (Electronic methods)
– Unlike postal rule the acceptance is only communicated when the message is opened see Entores.
Thomas and Gander v BPE - goes against this as it was sent in working hours (6pm) and the offeror could have “reasonably be expected to have read it”
See also Electronic Communication Regs 2002 – acceptance is when buyer receives confirmation of receipt and acceptance – so “Your order has been received and is now being processed” is not an acceptance.
