Offer and Acceptance Flashcards
How can an offer be terminated?(5)
- revocation
- rejection by other party
- lapse of time
- occurence of a stipulated event
- death
Which judge criticised the offer and acceptance rule in what case?
Lord Denning in
Gibson v Manchester City Council 1978
What did Lord Denning inGibson v Manchester City Council 1978 say in regards to his criticism of the offer and acceptance rule?
he said that ‘you should look at the correspondence as a whole’
What did Lord Wilberforce say in regards to the offer and acceptance rule in New Zealand Shipping Co Ltd?
that the ‘technical and schematic doctrine of contract’ often comes ‘at the cost of forcing facts to fit uneasily into the marked slots of offer, acceptance and consideration’
Who said that the ‘technical and schematic doctrine of contract’ often comes ‘at the cost of forcing facts to fit uneasily into the marked slots of offer, acceptance and consideration’ and in what cas?
Lord Wilberforce
New Zealand Shipping Co Ltd
What case is an example of how not all cases can be analysed into terms of offer and acceptance?
The Santanita
What happened in the case of ‘The Santanita’?
both the plaintiff and the defendant entered their Yacht in a regatta, agreeing to be bound by the sailing rules, however in breach of this they sank the plaintiffs yacht
While the parties reached agreement, Treital in The Law of Contract suggests that they did not do so by a process which can be analysed into offer and acceptance
Why does there need to be clear rules?
in order for lawyers and their clients to know where they stand and thus a general reluctance to abandon the whole rules in their entirety
Which European principle recognises that offer and acceptance is the usual model for the creation of a contract?
the Unidroit Principles of International Commercial Contracts s.2 Article 2
What is the consensus academic opinion of when an offer is made at a restaurant?
a menu amounts to an invitation to negotiate, not an offer
Why may the classical contract law model not fit with the practise of many commercial parties?
since relationships evolve rather than suddenly springing into existence and does not capture the dynamic nature f the relationship between the parties
Why are some commercial contracts rather vague?
in order for contracting parties that anticipate a long term relationship to deal with the future unanticipated problems that may arise
What are the offer and acceptance rules linked with?
the will theory of contract
When did the will theory develop?
19th century
Name 2 influential exponents of the will theory
French jurist Robert Pothier and
the German jurist Friedrich von Savigny
What did Professor Ibbetson state in regards to the Will theory?
that ‘the great merit of the Will Theory was that it had a measure of intellectual coherence that the traditional common law wholly lacked, though this coherence had been to some extent bought at the expense of common sense
Who said
that ‘the great merit of the Will Theory was that it had a measure of intellectual coherence that the traditional common law wholly lacked, though this coherence had been to some extent bought at the expense of common sense
Professor Ibbetson
What kind of contract does the adoption of the will theory pose ?
unilateral contracts
What happened in the case of Harvey v Facey?
Under ‘Has an offer been made’
the plaintiffs sent a telegraph to the defendant asking for the lowest cash price the defendant would take for it. The defendant replied to which the plaintiffs agreed to buy, and the defendant did not reply
it was held that there was no contract as the first telegraph was merely a request for information
the plaintiffs sent a telegraph to the defendant asking for the lowest cash price the defendant would take for it. The defendant replied to which the plaintiffs agreed to buy, and the defendant did not reply
it was held that there was no contract as the first telegraph was merely a request for information
What case is this in which area?
Harvey v Facey?
Under ‘Has an offer been made’
What happened in the case of Gibson v Manchester City Council?
Under ‘Has an offer been made’
the defendant city council had adopted a policy of selling council houses to its tenants. The application letter stated that it did not amount to a firm offer and invited the claimant to make a formal application. Following local elections the council moved to a Labour administration which refused to sell houses unless a binding contract was in place
HOL held that there was no contract as the council’s letter was not an offer but an invitation to treat and had not yet been accepted
the defendant city council had adopted a policy of selling council houses to its tenants. The application letter stated that it did not amount to a firm offer and invited the claimant to make a formal application. Following local elections the council moved to a Labour administration which refused to sell houses unless a binding contract was in place
HOL held that there was no contract as the council’s letter was not an offer but an invitation to treat and had not yet been accepted
What case is this under what topic?
Gibson v Manchester City Council?
Under ‘Has an offer been made’
What is the general rule to advertisements?
they are an invitation to negotiate, not an offer
What is the leading case under advertisements?
Partridge v Crittendon
What happened int eh case of Partridge of Crittendon?
advertisements
Facts: D advertised the sale of wild birds which was unlawful to offer under the Protection of Birds Act 1954
Held: Court held the advertisement was not an offer but an invitation to treat, not guilty. The legislation chose the phrase “offer for sale” and to adopt a different understanding would be to usurp their function as parliament
Facts: D advertised the sale of wild birds which was unlawful to offer under the Protection of Birds Act 1954
Held: Court held the advertisement was not an offer but an invitation to treat, not guilty. The legislation chose the phrase “offer for sale” and to adopt a different understanding would be to usurp their function as parliament
What case is this under what area?
Partridge of Crittendon?
advertisements
in what case did the HOL state that both reasonableness and objective intention are key to distinguishing between an offer and an invitation to treat?
Grainger and Son after the claimant tried to state that the defendant made an offer in the case of a price-list distributed by the merchant
What happened int eh case of grainger and son under advertsiesmrtns?
he claimant tried to state that the defendant made an offer in the case of a price-list distributed by the merchant
What Act makes provisions for a range of offences which may be committed by a trader who provides misleading information of various types to consumers
Consumer Protection from Unfair Trading Regulations 2008
What case proves that The conclusion that an advertisement is an invitation to negotiate is however not an invariable one
Carlill v Carbolic Smoke Ball Company 1893 - unilateral contract
What happened in the case fo Carlill v Carbolic Smoke Ball Company 1893 under advertisements?
Facts: Company sold a product claiming that if it did not cure influenza it would pay £100 to its buyers. The company was sued when this did not work but argued that the ad was not to be taken seriously as a legally binding offer but merely an invitation to treat, a gimmick
Held: it would appear to the reasonable man that the company made a serious, unilateral offer to the entire world. The performance of the company’s conditions is the acceptance of this offer
What did Bowen LJ say in regards to the extravagance of the promise made in Carlil v Carbolic Smoke Ball Company?
‘the extravagance of the promises is no reason in law why he should not be bound by them”
Which judge said ‘the extravagance of the promises is no reason in law why he should not be bound by them” in Carlil v Carbolic Smoke Ball Company?
Bowen LJ
What did Professor Simpson say about the importance of Carlil ?
that ‘it is historical; it was the vehicle whereby a new legal doctrine was introduced into the law of contract
Which case is generally cited as authority for the existence of the doctrines of intention to create legal relations?
Balfour v Balfour
What case upheld the COA decision in Carlil?
Bowerman v Association of British Travel Agents
What happened in the case of Bowerman, and the judegemtn of it
the plaintiffs booked a holiday but before it began the tour operator became insolvent and displayed in the premises that they would be reimbursed.
It was held by Hobhouse LJ that the defendants arguments in the present case had no greater validity than those advanced in Carlil.
the plaintiffs booked a holiday but before it began the tour operator became insolvent and displayed in the premises that they would be reimbursed.
It was held by Hobhouse LJ that the defendants arguments in the present case had no greater validity than those advanced in Carlil.
What case is this?
Bowerman
advertisements
What were the two key issues in Carlil?
1) the identifiaction of the acceptance
2) the communcationof the acceptance
ON which two grounds did the COA reject the defendants appeal in Carlil that there was no consideration and thus no contract?
1) the benefit that the defendants gained as a result of the use of the smoke ball in response to the advertisements
2) the use of the smoke ball three times a day constituted a detriment to the claimant
What is the general rule in relation to the display of goods for sale in a shop?
that the display constitutes an invitation to negotiate and not an offer. the leading case is:
Pharmaceutical Society of GB v Boots Cash Chemists 1953
What is the leading case for the displays of goods for sale in a shop?
Pharmaceutical Society of GB v Boots Cash Chemists 1953
Pharmaceutical Society of GB v Boots Cash Chemists 1953
under what topic is this the leading case?
- has an offer been made
display of goods for sale in a shop window
What happened in the case of Pharmaceutical Society of GB v Boots Cash Chemists 1953?
Facts: Pharamacy and Poisons Act 1933 requires the supervision of a registered pharmacist for the sale of any item on the poisons list
Held:D was not in breach of the act as the display of goods on shelves was not an offer accepted once the customer selected the item but only when payment was taken