Offer and Acceptance

Question 1

AO1 DEF (TvL)

Answer 1

An OFFER is a statement of the terms which a person is prepared to be bound by a contract. It’s made by the offeror to the offeree, and must be communicated (TAYLOR v LAIRD)

Question 2

If Rel:
AO1 BI

Answer 2

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

Question 3

If Rel:
AO1 UNI

Answer 3

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

Question 4

If Rel:
AO1 TEND

Answer 4

An invitation to tender will be classed as a unilateral offer, if the lowest price is to be accepted (BLACKPOOL AERO CLUB v BLACKPOOL BC). E.g Unilateral offers are auctions without reserves

Question 5

If Rel:
AO1 TREAT

Answer 5

An invitation to treat isn’t an offer so can’t be accepted. It’s an indication 1 person is willing to negotiate, encouraging a bilateral offer from another.
E.g. Advertisement (PARTRIDGE V CRITTENDEN)
Goods on display (FISHER v BELL, PHARMACEUTICAL SOCIETY OF GB v BOOTS)
An auction with reserve (BRITISH CAR AUCTIONS v WRIGHT)
Giving information in response to a request (HARVEY v FACEY)

Question 6

If Rel:
AO1 COMMUNICATE

Answer 6

An offer must be communicated to the offeree (TAYLOR v LAIRD)

Question 7

If Rel:
AO1 CONSIDERATION

Answer 7

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

Question 8

AO1 COUNTER OFFER

Answer 8

Counter-offer (HYDE v WRENCH)

Question 9

AO1 REVOCATION

Answer 9

Revocation (BYRNE v VAN TIENHOVEN) This must be communicated before acceptance, by offeror or 3rd party (DICKINSON v DODDS)

Question 10

AO1 TIME

Answer 10

Lapse of time (RAMSGATE VICTORIA HOTEL v MONTEFIORE - 4 MONTHS)

Question 11

AO1 DEATH

Answer 11

Death (BRADBURY v MORGAN)

Question 12

If Rel:
AO1 CONDUCT REVOKE

Answer 12

With unilateral offers, if conduct indicates acceptance, the offeree must give can’t be revoked if the expected conduct continues (ERRINGTON v ERRINGTON and WOODS)

Question 13

If Rel:
AO1 AWARE

Answer 13

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

Question 14

AO1 MIRROR

Answer 14

The ACCEPTANCE must ‘mirror the offer’

Question 15

If Rel:
AO1 POSITIVE CONDUCT

Answer 15

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

Question 16

If Rel:
AO1 DISADVANTAGE

Answer 16

Where an acceptance is required to be made in a certain way, it’ll generally be sufficient if it’s made in any other way, as long as it doesn’t disadvantage the offeror (MANCHESTER DC v COMMERCIAL and GENERAL, YATES v PULLEYN)

Question 17

If Rel:
AO1 CONDUCT

Answer 17

Acceptance can be communicated through conduct (REVIELLE v ANOTECH)

Question 18

If Rel:
AO1 POSTAL

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 but the postal rule won’t apply if the offeree makes a mistake in posting (GETREID v CONTIMAR). The postal rule can be excluded by the agreement if the parties.

Question 19

If Rel:
AO1 ELECTRONIC METHODS

Answer 19

For electronic methods, acceptance takes place when the offeror receives it. Law is unclear. Exactly time of acceptance depends on sound business practice and what’s the reasonable expectation of the parties (BRINKIBON v STAHAG STAHL)

Question 20

If Rel:
AO1 UNAWARE

Answer 20

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