Offer and Acceptance [Contract Law]

Question 1

Definition of an Offer

Answer 1

Defined by Lord Treital as ‘an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed’

Question 2

All examples of Invitations To Treat (ITT) and the main exception
(Offer)

Answer 2

• Goods displayed in a shop window (Fisher v Bell)
• Goods displayed on a shop shelf, until customer takes them to a till (Boots (The Chemist) Case)
• Simple advert (Partridge v Crittenden)
• Vague Wording in a letter (Gibson v Manchester City Council)
• An advert with an offer is a unilateral offer to the world (Carlil v The Carbolic Smokeball Company)

Question 3

Cct [Clear]

Offer

Answer 3

The offer must be clear and certain with no ambiguity (Gibson v Manchester City Council)

Question 4

cCt [Communicated]

Offer

Answer 4

The offer must be communicated, meaning if the offeree did not know of the offer, they cannot accept it after the fact (Taylor v Laird)

Question 5

Revocation [Termination]

Offer

Answer 5

If the offeror revokes an offer before it has been accepted (Routledge v Grant), and such revocation is communicated (Byre v Can Tienhoven), then the offer has been terminated.

Question 6

Death [Termination]

Offer

Answer 6

• If the offeree dies, the offer is terminated

- If the offeror dies and the offeree accepts before they know of the death, then the offer has NOT been terminated

Question 7

Lapse of Time [Termination]

Offer

Answer 7

• If an offer has a specific expiry date, then the offer will terminate after that time has elapsed
• If not, then the courts will consider whether the time that has elapsed has been ‘reasonable’ or not (Ramsgate Victoria Hotel Co v Montefiore)

Question 8

Definition of Acceptance

Answer 8

‘the unconditional assent to all terms of the offer’

Question 9

Muc [Method of Comm]

Acceptance

Answer 9

• Usually, the offeree must make their acceptance in the same way that the offeror made the offer
• However, it can be made in another way, so long as this does not inconvenience the offeror by taking longer than the way the offer was made
• If the offeror specifies a method of acceptance, then this must be followed (Yates v Pullen)

Question 10

Conduct [Method of Comm]

Acceptance

Answer 10

Acceptance may be communicated through the offeree’s conduct if the contract is a unilateral one (Carlil v Carbolic Smokeball Company)

Question 11

The Postal Rule [Methods of Comm]

Acceptance

Answer 11

When accepting by post, the PR says that acceptance becomes valid as soon as the letter is posted. So long as:

• Post was a usual, common sense mode of communication
• The letter was properly addressed and stamped
• The offeree can prove the letter was posted

Adams v Lindell

Question 12

Electronic Communication [Methods of Comm]

Acceptance

Answer 12

Acceptance becomes valid as soon as the message is received (Entores v Miles Far East Corporation)

If sent outside of normal working hours, then becomes valid as soon as those normal working hours resume (Thomas v BPE Solicitors).

Question 13

mUc [Unconditional]

Acceptance

Answer 13

The acceptance must be unconditional, meaning if the offeree tries to vary the terms of the contract, the original offer ends and therefore it cannot be accepted (Hyde v Wrench).

Requesting more information does not invalidate later acceptance (Stevenson v McLean).

Question 14

muC [Commincated]

Acceptance

Answer 14

The general rule is that communication must be expressly communicated to the offeror. If the contract is a Unilateral one, then the communication can come from the form of conduct.