Offer and Acceptance Flashcards
What is an offer in contract law?
A proposal or promise showing willingness to enter into a contract on firm and definite terms. The offer must be definite, avoiding vague terms such as ‘might’ or ‘may.’
Case: Gibson v Manchester City Council
What is the difference between an offer and an invitation to treat?
An offer shows willingness to enter into a contract, while an invitation to treat shows willingness to negotiate but not to make a legal offer.
Case: Partridge v Crittenden
What is an invitation to treat in advertisements?
Advertisements are generally considered invitations to treat, not offers. They invite potential buyers to negotiate.
Case: Partridge v Crittenden
What is a unilateral contract?
A contract where one party makes a promise, and the other party accepts by performing a specific action.
Case: Carlill v Carbolic Smoke Ball Co.
Example of a unilateral contract:
Sarah promises $100 to anyone who finds and returns her lost dog. The promise is only binding if someone performs the action.
What is a bilateral contract?
A contract where both parties exchange promises to do something.
Example: John promises to sell his bike to Mary for $200, and Mary promises to pay.
Are goods in a shop window an offer?
No, goods in a shop window are an invitation to treat. The seller is not obligated to sell to anyone.
Case: Fisher v Bell
Are bids at an auction an contract?
No, bids at an auction are offers made by the bidder, which the auctioneer can accept.
Case: British Car Auctions v Wright
What is a request for information?
Asking about the terms or price of a product is not an offer but a request for information.
Case: Harvey v Facey
Who can make an offer?
An offer can be made by an individual, partnership, company, or other organization.
Case: Thornton v Shoe Lane Parking
How long does an offer last?
An offer lasts until it is revoked, rejected, countered, lapses, or the offeror/offeree dies. The offeree must know of the offer for it to be valid.
Case: Taylor v Laird
How can an offer end through revocation?
An offer can be withdrawn anytime before acceptance, but the revocation must be communicated to the offeree.
Case: Routledge v Grant
How does rejection end an offer?
Once an offer is rejected, it cannot be accepted. Rejection must be communicated to the offeror.
Case: Hyde v Wrench
How does a counteroffer affect an offer?
A counteroffer is a rejection of the original offer and ends it.
Case: Hyde v Wrench
How does lapse of time end an offer?
An offer can lapse after the specified time or a ‘reasonable time’ if no time is stated.
Case: Ramsgate Victoria Hotel v Montefiore
What happens to an offer if the offeree dies?
If the offeree dies, the offer ends, and their estate cannot accept the offer.
What happens to an offer if the offeror dies?
Acceptance can still take place until the offeree learns of the offeror’s death, unless the contract involves personal services.
What are the requirements for acceptance in contract law?
Acceptance must be positive, unqualified, and agree to all terms of the offer.
Can acceptance be done through silence?
No, acceptance cannot be done through silence.
Case: Felthouse v Bindley
What is acceptance by conduct?
Acceptance occurs through actions that show agreement, even if no words are exchanged.
Case: Reveille Independent LLC v Anotech International UK
Example of acceptance by conduct:
Ordering a coffee at a café. The barista making the coffee shows acceptance, and the customer agrees to pay by taking the coffee.
What is the postal rule for acceptance?
Acceptance is valid when the letter is posted, not when it is received.
Case: Adams v Lindsell
What are the conditions for the postal rule to apply?
- Post must be a usual/expected means of communication.
- Letter must be properly addressed and stamped.
- Offeree must prove the letter was posted.
When does acceptance occur via electronic communication?
Acceptance occurs when the offeror is aware of it, not when the message is sent.
Case: Entores v Miles Far East
