offer and acceptance B2

Question 1

privity of contract and case

Answer 1

generally, only parties to a contract are bound to it. means third parties cannot bring court action to enforce a contract.
(dunlop pneumatic tyre co v selfridge)

Question 2

exceptions to privity of contract rule

Answer 2

1) third party expressly identified by name
2) contract states third party can enforce the contract
3) contract confers a benefit to him/her (such as gift)
= comes from section 1 of the contracts act 1999

Question 3

invitation to treat definition

Answer 3

mere request to make an offer and open up negotioations

Question 4

invitation to treat examples

Answer 4

1)goods in a shop - (pharmaceutical society of GB v boots cash chemist)
2)goods on display in shop window - (fisher v bell)
3)request for tenders
4)statement of price - (harvey v facey)
5)auctions - (british car auctions v wright)
6)advertisements - (partridge v crittenden)
- unilateral offer - (carlill v carbolic smoke ball ltd)

Question 5

rules of offer

Answer 5

• offer must be communicated to the offeree
• offer can be made to one person or the whole world (taylor v laird)
• terms of the offer must be certain (guthing v lynn)

Question 6

termination of offer

Answer 6

-offer is revoked and communicated to the offeree
-time for acceptance lapses (specific)
-reasonable time has passed
-one of the contracting parties dies

Question 7

rules of acceptance

Answer 7

1) acceptance must be communicated to the offeree (felthouse v bridley)
2) acceptance can be in any form - unless offer states it must be in specific way (yates v pulleyn)
3) acceptance must be unconditional - not a counter offer (hyde v wrench)
4) enquiries do not count as rejection

Question 8

problems with communicating acceptance - postal rule

Answer 8

(adams v lindsell) or (household fire insurance v grant)
however, can be voided if contract makes clear there is no contract until letter is actually received.

Question 9

modern methods of acceptance

Answer 9

when accepting offer via email, fax, text etc. courts should have regard for parties intentions, sound business practice and judgement
- if received during office hours, contract is accepted there and then
- if received out of office hours, contract will be formed once office is reopened