Offer and Acceptance

Question 1

Carlill v Carbolic Smoke Ball

Answer 1

An offer is formed where any reasonable person would believe it to be an offer

Question 2

Partridge v Crittenden

Answer 2

Advertisements are invitations to treat, not offers

Question 3

Byrne and Co v Van Tienhoven and Co

Answer 3

Revocation of an offer must be communicated

Question 4

Hyde v Wrench

Answer 4

Counter offer destroys original offer

Question 5

Stevenson, Jacques and Co v McLean

Answer 5

Invitation to treat vs counter offers…

an invitation to treat does not destroy the original offer

Question 6

Brogden v Metropolitan Railway

Answer 6

An offer can be accepted through conduct…

if new terms are set and one follows those new terms through conduct, the new contract has been accepted

Question 7

Pharmaceutical Society of Great Britain v Boots Chemist

Answer 7

Display of sales of goods are an invitation to treat not an offer to sell
(Outlined in Sales of Good Act)

Question 8

Felthouse v Bindley

Answer 8

Silence is not sufficient acceptance

Question 9

Entores v Miles Far East

Answer 9

General rule for instantaneous methods of communictaion is that acceptance is valid when communicated
(case to case basis; the intention of parties must be reviewed)

Question 10

Adams v Lindsell

Answer 10

‘Postal rule’ acceptance is valid on posting… when posting is a contemplated means of communication

Question 11

Dickinson v Dodds

Answer 11

Withdrawal must be bought to the attention of the offeree

Notification by a third party of an offers withdrawal, is just as effective as a notification of withdrawal made by the offeror himself.

Question 12

Offer =

Answer 12

Expression of willingness to contract specified terms made with the intention that it is to become binding as soon as it is accepted

Question 13

Acceptance =

Answer 13

A final, unequivocal (leaving no doubt) and unconditional (not subject to any conditions) expression of assent to the terms of an offer

Question 14

Acceptance must be…

Answer 14

communicated …

• verbally
• written
• conduct

Question 15

What does a counter offer do to the original offer?

Answer 15

Destroys it

Question 16

What is an invitation to treat?

Answer 16

A willingness to negotiate

Question 17

What is meant by an ‘objective approach’ to the question of valid contract formation?

Answer 17

An agreement between parties exists if a reasonable person could judge the acts of the parties to objectively interpret agreement
An objective approach protects the position of the offeree as they can fully understand the terns of an agreement (as a reasonable person would)

Question 18

An offer, acceptance and revocation of an offer all have to be…

Answer 18

communicated

Question 19

Objective intention in contract law?

Answer 19

Words are to be interpreted as they were reasonably understood by the man to whom they were spoken, not by the one who spoke them

Question 20

Intention to create legal relations is an intention to enter into a legally binding agreement … what factors should be considered?

Answer 20

1. Parties minds should be obvious about entering
2. If there is none, the contract will not be legally enforceable or binding
3. Without it, the parties cannot sue each other
4. Contract becomes a mere promise

Question 21

Bilateral vs Unilateral contracts:

Answer 21

In a unilateral contract, the offeree makes no promise and so is under no obligation to do anything, whereas, a bilateral contract places obligations upon and grants rights to both parties

Question 22

Termination of an offer:

Answer 22

• The offeror can terminate an offer at any time but must communicate this withdrawal (either by himself or through a third party) before the other party accepts the offer.
• If the offeree rejects the offer, or makes a counter offer, this will terminate the original offer.
• Other ways can also come about, such as lapse of time, or, death in one party, however, this is still unclear.

Question 23

Acceptance by modern communication methods:

Answer 23

Must look at the particular situation to determine that all reasonable steps have been taken to communicate acceptance.

Question 24

Acceptance by post:

Answer 24

general rule is that offer is accepted when the letter is posted, not when it reaches the offeror (only applying where the offeror contemplated that it may be posted, so this rule is less likely to apply today, with new, more modern means of communication methods). It will also not apply where the offer expressly or impliedly requires actual unequivocal communication of acceptance