Offer and acceptance Flashcards
What are the requirements for an offer to be valid?
1) Must be made with serious intention of creating a binding and legal contract
2) Must be complete and clear
3) Must still be in existence at the time that it is accepted
What does serious intention include and what are the exemptions
Serious intention depends on the wording, circumstances and how a reasonable person would interpret it. This excludes offers made in jest, social arrangements and advertising.
What does it mean for an offer to be complete and clear
it means that the offer contains the essential terms that an unconditional acceptance can bring about a binding contract. this includes things such as price, subject etc
In what ways can an offer no longer be in existence at the time it was accepted
revocation
lapse of offer
rejection
What does revocation entail
Withdrawl of the offer by the offerer. This can occur anytime prior to acceptance but not after acceptance as then it is a breach
What does a lapse of offer mean
It means that the offer has not been accepted in reasonable time, not accepted by due date, death of offeror/offeree or the contract is no longer valid
What does rejection entail
An express rejection and a rejection with counter offer
What are the requirements for an acceptance to be valid
1) acceptance must be made by particular persons to whom the offer was addressed
2) Must be made knowingly
3) must be clear and conditional
4) Must be communicated in prescribed manner
5) It must be made before the offer comes to an end
In which ways can an acceptance be communicated
Information theory
expedition theory
reception theory
When is information theory accepted
Acceptance only valid and contract formed once communicated to offeror.
When is expedition theory accepted
Makes an offer by/authorizes acceptance by post. Acceptance takes place and contract concluded at time and place where letter of acceptance is posted
When is reception theory accepted?
Falls under the electronic communications and transactions act 2002. Contract concluded at time and place where acceptance received by offerer. Electronic message received by offeror when and where the complete data message enters his information system and is capable of being retrieved and processed by him.
What does a cooling off period mean and how does it relate in the ECT and CPA act
The cooling period refers to the period in where a consumer can cancel the contract without a valid reason and it will not be a breach. In ECT it is 7 days and can receive a refund, with a levy, within 30 days. In CPA it is 5 days
What about reservations for restaurants or other bookings
section 17 CPA; right to cancel reservation without it being a breach. This is subject to reasonable cancellation fee and does not apply to special orders
