Offer And Acceptance Flashcards
Contract
A legally binding agreement between two or more parties.
Offer
. A proposal made by one party (offeror) to another (offeree) to enter into a contract.
Acceptance
An agreement to the terms of the offer, making the contract valid
Offeror
The person or party who makes the offer.
Offeree
The person or party to whom the offer is made.
Bilateral Offer
An offer involving promises exchanged between two parties.
Unilateral Offer
An offer that can be accepted by performing a specific act.
Mirror Image Rule
Acceptance must match the terms of the offer exactly.
Counteroffer
A response to an offer that changes its terms, which terminates the original offer.
Invitation to Treat
An indication that someone is willing to negotiate but not yet make a legal offer.
Termination of Offer
The end of an offer, which can happen for several reasons.
Revocation
The withdrawal of an offer by the offeror before acceptance.
Gibson v Manchester City Council
Case stating that offers must be clear and definite
Hyde v Wrench
Case where a counteroffer terminated the original offer.
Carlill v Carbolic Smoke Ball Co
Case illustrating a unilateral offer accepted by performance.
Thornton v Shoe Lane Parking
Case where a ticket machine was deemed the offer or
R v Clarke
Case where the offeree couldn’t accept because he was unaware of the offer.
Dickinson v Dodds
Case about revocation communicated by a third party.
Routledge v Grant
Case demonstrating that offers can be revoked before acceptan
Errington v Errington & Woods
Case showing that performance begins an implied obligation not to revoke
Felthouse v Bindley
Case establishing that silence cannot be acceptance.
Harvey v Facey
Case illustrating that a request for information is not an offer
Ramsgate Victoria Hotel v Montefiore
Case about the reasonable time for acceptance.
What are the 5 ways an offer can end?
R, R3, D, TL, R or C
Felthouse V bindley
Acceptance can’t be silent
Prescribed acceptance
When acceptance is asked for in a specific format e.g by post, email, text
Yates V pullyen
Shows that other methods of acceptance can be accepted aslong as it doesn’t disadvantage the offeror
Neocleous V Rees
Autogenerated signatures are seen as valid
Neocleous V Rees
Autogenerated signatures are seen as valid
Wells V devani
Courts can imply missing terms in contracts if the parties’ intentions and industry norms make the agreement clear
Wells V devani
Courts can imply missing terms in contracts if the parties’ intentions and industry norms make the agreement clear
Stevenson V Maclean
The burden of communication is with the offeree
Ways acceptance can take place normally?
Oral or written communication or performance un unilateral offers
3 way acceptance can take place we take a closer look at?
1) by conduct 2) by post 3) by electrons communication
Brogden v metropolitan rail Co
Case where acceptance was done through conduct
Reveille V anotech
. Case where acceptance was done through conduct
What is the 3 rules of the postal rule
• The letter must be properly addressed and
stamped.
• The offeree must be able to prove it was posted. • post is the usual method of communication
When does acceptance occur when it comes to post?
When the letter is posted not when is received
Adam’s V lidsell
Acceptance occurs when the letter is posted
Hentron v Fraser
Using post as acceptance is valid if reasonable under the circumstances
For electronic communication when does acceptance take place
When the message has been received rather than sent
Thomas V bpe solicitors
Confrimed acceptance is sent outside business hours it will happen once business hours resume
