Offer And Acceptance

Question 1

What is an offer?

Answer 1

An offer is a statement of the terms upon which a person is prepared to be bound by a contract.

Question 2

Who is it made by + case ?

Answer 2

It is made by the offeror to the offeree, and must be communicated (TAYLOR v LAIRD).

Question 3

IF RELEVANT : What does a bilateral offer require + case ?

Answer 3

A bilateral offer requires both parties to do something .e.g. an offer to pay money for goods (TAYLOR v LAIRD).

Question 4

IF RELEVANT : What does a unilateral offer require + case ?

Answer 4

A unilateral offer requires just the offeror to do something .e.g. offering a reward for finding a lost cat (CARLILL v CARBOLIC SMOKE BALL).

Question 5

IF RELEVANT : What is an invitation to tender + case ?

Answer 5

An invitation to tender will be classed as a unilateral offer, if the lowest/best price/bid is to be accepted/all tenders are to be considered (BLACKPOOL AERO CLUB v BLACKPOOL BC)

Question 6

IF RELEVANT : What is another example of a unilateral offer ?

Answer 6

Auctions without reserves ( as there is only one outcome ) .

Question 7

IF RELEVANT : What is an invitation to treat ?

Answer 7

An invitation to treat is not an offer and so cannot be accepted. It is an indication that one person is willing to negotiate, encouraging a bilateral offer from another .

Question 8

IF RELEVANT : What are examples of invitations to treat + cases ?

Answer 8

An advertisement ( PARTRIDGE v CRITTENDEN ) , goods on display ( FISHER v BELL , PHARMACEUTICAL SOCIETY OF GB v BOOTS ) , an auction with a reserve ( BRITISH CAR AUCTIONS v WRIGHT ) and giving information in response to a request ( HARVEY v FACEY ).

Question 9

IF RELEVANT : What must be communicated + case ?

Answer 9

An offer must be communicated to the offeree i.e. offeree knows about it ( TAYLOR v LAIRD )

Question 10

IF RELEVANT : What must the offeree give for the offer to remain open + case ?

Answer 10

For an offer to remain open until a certain time/date, the offeree must give consideration to the offeror , such as a deposit ( ROUTLEDGE v GRANT )

Question 11

What can an offer end with + cases ?

Answer 11

Usually a rejection or an acceptance , a counter-offer ( HYDE v WRENCH ) , revocation ( BYRNE v VAN TIENHOVEN ) : this must be communicated before acceptance , either by offeror or a third party ( DICKINSON v DODDS ) , lapse of time ( RAMSGATE VICTORIA HOTEL v MONTEFIORE - 4 months ) , death ( BRADBURY v MORGAN ) .

Question 12

IF RELEVANT : When can unilateral offers not be revoked + case ?

Answer 12

If conduct indicates acceptance , the offer cannot be revoked if the expected conduct continues as in ERRINGTON v ERRINGTON and WOODS.

Question 13

IF RELEVANT : What also counts as revocation ?

Answer 13

If a party is aware that goods have been sold, this also counts as revocation.

Question 14

What does “ mirror the offer “ mean ?

Answer 14

The acceptance must “ mirror the offer “ i.e. reflect it exactly without modifications.

Question 15

IF RELEVANT : What must the acceptance be to the offeror + case ?

Answer 15

It must be unconditional and communicated to the offeror by positive conduct and not silence ( FELTHOUSE v BRINDLEY )

Question 16

IF RELEVANT : What happens if acceptance is not made in a certain way + cases ?

Answer 16

Where acceptance is required to be made in a certain way, it will generally be sufficient if it is made in any other way , as long as it does not disadvantage the offeror ( MANCHESTER DC v COMMERCIAL AND GENERAL , YATES v PULLEYN )

Question 17

IF RELEVANT : How else can acceptance be communicated + case ?

Answer 17

Acceptance can also be communicated through conduct ( REVEILLE v ANOTECH )

Question 18

IF RELEVANT : What is the postal rule + case ?

Answer 18

Under the postal rule , acceptance is communicated at the time of posting , not when the offeror receives it ( BYRNE v VAN TIENHOVEN ). It doesn’t need to arrive for it be effective.

Question 19

IF RELEVANT : When does the postal rule not apply + cases ?

Answer 19

The postal rule will not apply if the offeree makes a mistake in posting ( GETREID v CONTIMAR ). The rule can be excluded by the agreement of the parties ( HOLWELL SECURITIES v HUGHES ) .

Question 20

IF RELEVANT : What is the ruling for electronic methods + case ?

Answer 20

For electronic methods , acceptance takes place when the offeror receives it , although the law is unclear and the exact time of acceptance depends on sound business practice and what is the reasonable exception of the parties ( BRINKIBON v STAHAG STAHL )

Question 21

IF RELEVANT : What if the claimant is unaware of the offer + case ?

Answer 21

An offer can be accepted even if the claimant was unaware the offer existed ( GIBBONS v PROCTOR ) .