Offer And Acceptance Flashcards
Definition of an offer:
Give Ewan McKendrick’s defintion
“An offer is a statement by one party of a willingness to enter into a contract on stated terms”
Contract law 7e p.33
Definition of an invitation to treat:
Give Ewan McKendrick’s definition
“An expression of willingness to enter into negotiations which, it is hoped, will lead to the conclusion of a contract at a later date”
Contract Law 7e p.33
Invitation to treat:
Give the Case Law
The Manchester City cases:
Storer v Manchester City Council (1974) “is willing”
Gibson v Manchester City Council (1978) “may be”
Invitation to treat:
Goods for sale in shops- Give the Case Law
Partridge v Crittenden (1968) - live birds
Pharmaceutical Society of GB v Boots Cash Chemist (1953)
Fisher v Bell (1961) - flick knives
Unilateral offers
leading case and its decision
Carlill v Carbolic Smoke Ball Co (1893)
The court held that:
1 - unilateral offers are valid
2a - formal acceptance not necessary
2b - an offer can be made to the whole world, those who fulfil the conditions can accept
3 - the offer was not vague and the wording was specific - thus can be judged objectively
Counter offers
Give Case law
Hyde v Wrench (1840)
Butler v Ex-Cell-O corporation (1979)
Acceptance
Give the Ewan McKendrick Definition
“An unqualified expression of assent to the terms proposed by the offeror”
Contract Law 7e p.43
Three rules on Acceptance
Give the rules
Acceptance is usually by words, but can be by conduct
Silence is never acceptance
Request for details is not acceptance
Three rules on Acceptance
Give the supporting case law:
Acceptance is usually by words, but can be by conduct Carlill v Carbolic Smoke Ball Co (1893)
Silence is never acceptance
Felthouse v Brindley (1862)
Request for details is not acceptance
Stevenson Jacques & Co v McLean (1880)
Communication of acceptance - case law
Entores v Miles
In Entores ltd v Miles Far Eastern Corporation (1955) Denning LJ suggested that the onus is on the offeror to verify, if acceptance has not yet been received
Communication of acceptance - case law
Brinkibon v Stahag Stahl
In Brinkibon v Stahag und Stahl (1983) Lord Wilberforce qualified that there is no hard fast rule, the court would resolve by assessing the intention of the parties
Define a ‘rebuttal’
A rebuttal is a defence against being held to the terms of a contract, on the basis that there was no intent to create a legal relationship.
Name the elements that must be present to create a legally binding contract
Offer
Acceptance
Consideration
Intent to create a legal relationship
Intent to create a legal relationship
Give the leading case in commercial contracts
Edwards v Skyways (1964) - ‘ex gratia’ payment defence by employer held as insufficient rebuttal
Intent to create a legal relationship
Describe the presumption in social and domestic agreements and two leading cases.
The simple rule is that agreements of this nature should not be binding and eforcable by the court.
In Balfour v Balfour (1919) man and wife were on friendly terms at the time of the agreement.
In Merritt v Merrit (1970) - the couple were separated and therefore rely less on ‘honourable understandings’
