Offer and Acceptance

Question 1

What is an offer? What is a key case of this?

Answer 1

• An offer is a proposal showing a willingness to contract on firm and definite terms
• This is legally binding
• This is seen in (Storer v Manchester City Council)

Question 2

What is an invitation to treat? What is a key case of this?

Answer 2

• An indication that one person is willing to negotiate a contract with another, but not willing to make a legal offer
• This is not legally binding
• This is seen in (Gibson v Manchester City Council)

Question 3

What are scenarios where the outcome is presumed?

Answer 3

1. Advertisements
2. Goods in a shop window
3. Lots at an auction
4. Request for information

Question 4

What are key cases of the presumed scenarios?

Answer 4

1. Advertisements = Partridge v Crittenden
2. Goods in a shop window = Fisher v Bell and Pharmaceutical Society of GB v Boots Cash Chemists
3. Lots at an auction = British Car Auctions v Wright
4. Request for information = Harvey v Facey

Question 5

What is the exception to the rules of presumptions? What is a key case of this?

Answer 5

1. Advertisements = In unilateral contracts it will be an offer compared to bilateral contracts which will be seen as an invitation to treat
   - This is seen in Carlill v Carbolic Smoke Ball Co

Question 6

What is a unilateral and bilateral contract?

Answer 6

1. A unilateral contract = One party pays for performance however they are not obligated to act
2. A bilateral contract = Both parties have an obligation to do something

Question 7

Who is able to make an offer?

Answer 7

• Offers can be made by anyone to anyone such as an individual or large group of people
• Offers can only be made by a notice. This is seen in (Thornton v Shoe Lane Parking)

Question 8

When can an offer be accepted? What is a key case of this?

Answer 8

• An offer can be accepted when the offer is still open
• It is essential to establish when an offer starts and ends
• The offer starts when it is communicated to the offeree meaning they must know of the existence of the offer
• The offer can only be accepted when it is still open
• This is seen in (Stevenson v Mclean), (Taylor v Laird) and (Williams v Cawardine)

Question 9

What are the ways that an offer can end?

Answer 9

1. Revocation
2. Rejection
3. Lapse of time
4. Death
5. Acceptance
6. Counter offer

Question 10

What is revocation? What is a key case of this?

Answer 10

• An offer is withdrawn by the offerer
• An offer can be revoked any time before acceptance takes place however it must be communicated effectively
• This is seen in (Byrne v Van Teinhoven), (Dickinson v Dodds), (Routledge v Grant) and (Errington v Errington)

Question 11

What is rejection? What is a key case of this?

Answer 11

• An offer is terminated when the offeree communicates the rejection to the offeror
• It cannot be accepted after the prior offer was rejected
• This is seen in (Hyde v Wrench) , a counter offer terminates the original offer therefore rejection of the offer means that they cannot accept the prior offer

Question 12

What is lapse of time? What is a key case of this?

Answer 12

• An offer cannot be accepted after an unreasonable delay
• As seen in (Ramsgate Victoria Hotel v Montefiore) an offer will lapse if it is open for a specific length and has expired
• Normally, there is no time limit but a reasonable time

Question 13

What is death? What is a key case of this?

Answer 13

• The death of the offeror or the offeree will cause a termination of the contract
• If a man who makes an offer dies, the offer cannot be accepted after he is dead. This was seen in (Dickinson v Dodds)

Question 14

What is acceptance? What is a key case of this?

Answer 14

• Once the offer was accepted by the offeree, the contract is formed and the offer is brought to the end. This can either by orally, written or by conduct

Question 15

What is a counter offer? What is a key case of this?

Answer 15

• Any attempt to introduce new terms will act as a counter offer
• An enquiry is not a counter offer but a request for more information. This is not an offer

Question 16

What does not amount to acceptance? What is a key case of this?

Answer 16

• In (Felthouse v Bindley) the court refuses to impose an obligation on the offeree to reject the offer
• Silence does not amount to acceptance

Question 17

What is the Postal Rule? What is the key case of the postal rule?

Answer 17

1. The rules only apply to acceptance letters
2. The rules only apply if post is usual or expected means of communication
3. The letter must be addressed and properly stamped
   - Acceptance takes place at the moment is properly posted. This is not when the offeror recieves the letter
   - This is seen in (Adams v Lindsell) and (Byrne v Van Teinhoven)

Question 18

What is the rule for electronic methods of acceptance? What is the key cases of this?

Answer 18

• Acceptance occurs via electron methods when the offeror is aware of the acceptance. If this is verbal, both parties must have heard it
• If it is sent within working hours, it is assumed they will have read it and is therefore valid
• (Entore v Miles), (Thomas and Gander v BPE Solicitors) and (Mondial Shipping v Astarte Shipping)