Offer and Acceptance Flashcards
What is a contract
Set of promises enforced by the law
What are the four requirements of a contract
- offer
- acceptance
- consideration
- intention
What is the difference between the offeror and the offeree
Offeror - makes the offer
Offeree - party receiving the offer
What is ITT
Invitation to Treat - sign that the person is open to doing business - not contract forming
-ex for sale sign
What is a standard form contract
prepared by offeror, including terms favorable to the offeror that can not be changed by the offeree, must be accepted or rejected “take it or leave it”.
Ex: movie tickets, software agreements
If the offeree proves they did not have knowledge of the term …
If the offeree proves they did not have knowledge of the term, the offeror must show on an objective basis that it took reasonable precautions to bring notice of the term to the offeree.
The best way for the offeror to prove they brought the term to the attention of the offeree
Written document signed by offeree
Written notice specifying the terms
Public notice which is in plain sight
Lapse occurs on the earliest of
- When the offeree fails to accept within specified time period
- When the offeree fails to accept within a reasonable time, if there is no specified time period
- When either party (offeror or offeree) dies or becomes incompetent prior to acceptance.
What is Revocation
an offeror can revoke or withdraw an offer any time prior to acceptance
- Needs to be communicated
- The offeree needs to be aware that the offeror can no longer complete the deal, and therefore the offer is revoked
What is a counter offer
rejection of the original offer, and a subsequent offer to purchase on different terms
Once a counter offer is made, the original offer is gone
What must acceptance be
Acceptance must be certain and unconditional - Positive act
What is a unilateral Contract
Acceptance by conduct
-If the offer implies acceptance can be completed by conduct. The offeree need not communicate their acceptance
-The offer cannot be revoked, where a person in the process of completing the conduct
Ex: Carlill v Carbolic Smoke Ball Co
What is the 4 part test to Offer and Acceptance
- Who made the offer
- When was it communicated
- Who accepted the offer
- When was it accepted
