Offer And Acceptance Flashcards
Offer
Clear intent to form a contract with specific terms.
Formation
Acceptance
Unconditional agreement to those exact terms, when one party accepts an offer made by the other party.
Consensus ad idem
“agreement to the same thing” It is a fundamental principle in contract law that ensures both parties to a contract have a mutual understanding of the agreement’s terms and intentions. Without it there is no valid contract because the parties are not aligned on what the y are agreeing to
Martin Smith v Williams (1998)
Invitation to treat
An invitation for others to make, not a binding offer. Examples: Carlill v Carbolic smoke Co. (1893): an advertisement can be an offer if there’s clear intent to be bound, fisher V Bell ( 1961): displaying a product in a shop is an invitation to treat, not an offer.
Counter- offers
Rejects the original offer and creates a new one. The original offer cannot be acceptedafterword. Example: Hyde v wrench (1840): a counter-offer terminated the original offer.
Communication of acceptance
Acceptance must be communicated to the offeror. Silence is not acceptance. Example: felthouse v. Bindley (1862): silence cannot be considered as acceptance.
Postal rule
Acceptance by post is effective when posted, not when received. Example: Adam’s V Lindsey (1818): acceptance was valid once the letter was posted, even if it arrived late.
Revocation of offers
Offers can be revoked before acceptance, put the revocation must be communicated. Example: Dickinson v Dodds (1876): revocation can be communicated through a reliable third party.
Auction and tenders
In an auction, the bid is an offer, and acceptance occurs when the hammer falls.in tenders, the invitation to tender is an invitation to treat, and each bid is an offer. Example: blackpool & fylde aero club v blackpool BC (1990): failing to consider a valid tender breached an implied term.
Bilateral contract
One promise in exchange for another promise. Both parties make mutually dependent promises.it one party breaches their promise, the other party is typically relived of their obligations to fulfill their part of the contract. Example: you promise to mow someone’s lawn, and they promise to pay $so. Both sides agree to do something in exchange for the other.
Unilateral contract
One promise in exchange for the performance of a requested act. One side makes a promise, but the other side only acts if they choose. Example: more about action than promise if there is an awardof $ 100 for a missing dog and I walk past l am not bound to the contract but as soon as1 take action to go accept the action of the requested performance I an now in a unilateral contract.
Consensus ad idem
Agreement of the minds, refers to both parties in a contract agreeing on the same thing, in the same way, at the same time. It’s a basis requirement for a valid contract because it shows that both sides understand and accept the terms. Example: you want to buy a car from someone for 5,000 you both agree that the car is a specific model, year, and condition, and the seller agrees to sell it to you.
Advertisements (bilateral)
Invitation to treat-generally seen as invitations for customers to make offers. If ads were considered offers it would be obligated to sell to everyone who responded. Example: Partridge v Crittenden (1968) - ad in a magazine for birds for sale.
