Offer and acceptance Flashcards
what is an offer?
Willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted
offerer
person making the offer
offeree
the person to whom the offer has been made
What are the conditions of an offer?
Must be communicated and unconditional, unambiguous
Gibson v MCC
Storer v MCC
What is a bilateral offer?
made to specific person/people
require written or verbal acceptance
Gibson v MCC
what is a unilateral offer?
made to people generally/the ‘whole world’
Carlill v Carbolic Smoke Ball
When will an invitation to treat occur?
adverts - Partridge v Crittenden
in shop window - Fisher v Bell,
on self-serve shop shelves - Pharmaceutical Society of GB v Boots
auctions - British car auctions v Wright
counter offer
when the offeree replies to an offer by changing elements of the original offer
Hyde v wrench
request for further information
contrasts counter offer
doesnt terminate the offer
stevenson v Mclean
lapse of time
An offer can end if it was only open for a limited time
if the is no end date for the offer it will lapse after a ‘reasonable’ amount of time
Ramsgate Hotel v Montefiore
Death
Offers of a personal nature will end if the offeror dies
Bradbury v Morgan
continuing act of acceptance
The courts generally do not allow the offeror to withdraw the offer when the acceptance is an ongoing act.
Errington v Errington
When can an offer be terminated?
counter offer
lapse of time
death
revocation
revocation
must be communicated to be effective - Byrne v Van Tienhoven
can be made via a third party - Dickinson v Dodds
If consideration is given, the offer must stay open for the set time - Routledge v Grant
What is acceptance?
an agreement to all the terms of an offer by words or conduct
Mirror image rule
Acceptance must fit the terms of the offer exactly
prescribed acceptance
sometimes, the offer will states how the offeree must accept
This must ‘usually’ be complied with if there is to be a valid acceptance
can sometimes be a waiver of the requirement if there is no disadvantage to the offeror
Yates v pulleyn
Felthouse v bindley
Silence not acceptance
When can silence be accepted?
an offeror can waiver the communication of acceptance via expressly or implied by nature of offer ( unilateral contracts)
What are the methods of communication?
non-instantaneous (post)
instantaneous ( phone)
Battle of forms
When may post be used by the offeree?
The offer was made by post
The offeror specifies acceptance can be by post
Previous dealings between the two parties has been via post
the postal rule
acceptance is valid as soon as it is posted
offeror does not have to receive it
Adams v lindsell
When does the postal rule apply?
the rule only applies if the post is the usual or expected means of communication
the letter has been properly addressed and stamped.
instantaneous communication
phone calls
acceptance will take place once received
Entores v Miles far east corp reaffirmed in Brinkibon Stahag
Thomas v BPE solicitors
inside working hours - when the offeror could, and in all circumstances would reasonably be expected to have read it
when will the postal rule not apply?
when the offeror has stated (specifically or implied) that it will not apply
Holwell v Hughes
Mondial Shipping v Astarte
receipt of a contractual notice should be deemed to take place at the start of the next working day if it was received and stored outside normal working hours.
battle of forms
One business makes an offer on its standard forms
The other business/customer then accepts on its own standard form.
last shot - BRS v Crutchly
