Offer and acceptance

Question 1

what is an offer?

Answer 1

Willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted

Question 2

offerer

Answer 2

person making the offer

Question 3

offeree

Answer 3

the person to whom the offer has been made

Question 4

What are the conditions of an offer?

Answer 4

Must be communicated and unconditional, unambiguous
Gibson v MCC
Storer v MCC

Question 5

What is a bilateral offer?

Answer 5

made to specific person/people
require written or verbal acceptance
Gibson v MCC

Question 6

what is a unilateral offer?

Answer 6

made to people generally/the ‘whole world’
Carlill v Carbolic Smoke Ball

Question 7

When will an invitation to treat occur?

Answer 7

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

Question 8

counter offer

Answer 8

when the offeree replies to an offer by changing elements of the original offer
Hyde v wrench

Question 9

request for further information

Answer 9

contrasts counter offer
doesnt terminate the offer
stevenson v Mclean

Question 10

lapse of time

Answer 10

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

Question 11

Death

Answer 11

Offers of a personal nature will end if the offeror dies
Bradbury v Morgan

Question 12

continuing act of acceptance

Answer 12

The courts generally do not allow the offeror to withdraw the offer when the acceptance is an ongoing act.
Errington v Errington

Question 13

When can an offer be terminated?

Answer 13

counter offer
lapse of time
death
revocation

Question 14

revocation

Answer 14

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

Question 15

What is acceptance?

Answer 15

an agreement to all the terms of an offer by words or conduct

Question 16

Mirror image rule

Answer 16

Acceptance must fit the terms of the offer exactly

Question 17

prescribed acceptance

Answer 17

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

Question 18

Felthouse v bindley

Answer 18

Silence not acceptance

Question 19

When can silence be accepted?

Answer 19

an offeror can waiver the communication of acceptance via expressly or implied by nature of offer ( unilateral contracts)

Question 20

What are the methods of communication?

Answer 20

non-instantaneous (post)
instantaneous ( phone)
Battle of forms

Question 21

When may post be used by the offeree?

Answer 21

The offer was made by post
The offeror specifies acceptance can be by post
Previous dealings between the two parties has been via post

Question 22

the postal rule

Answer 22

acceptance is valid as soon as it is posted
offeror does not have to receive it
Adams v lindsell

Question 23

When does the postal rule apply?

Answer 23

the rule only applies if the post is the usual or expected means of communication
the letter has been properly addressed and stamped.

Question 24

instantaneous communication

Answer 24

phone calls
acceptance will take place once received
Entores v Miles far east corp reaffirmed in Brinkibon Stahag

Question 24

Thomas v BPE solicitors

Answer 24

inside working hours - when the offeror could, and in all circumstances would reasonably be expected to have read it

Question 25

when will the postal rule not apply?

Answer 25

when the offeror has stated (specifically or implied) that it will not apply
Holwell v Hughes

Question 26

Mondial Shipping v Astarte

Answer 26

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.

Question 27

battle of forms

Answer 27

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