Offer Content Flashcards
What is an offer?
An expression of willingness to enter into a contract.
What are the 3 ingredients of a valid offer?
- It must be communicated by the offeror to the offeree.
- The offeror must have the intention to be bound by his offer.
- The offer must be specific, definite or complete.
What is the exception to the rule that an offer must be specific, definite and complete?
In offers where the specific terms are yet to be agreed or drawn up, the general terms of an offer may suffice.
Explain the objective principle, vis a vis intention to be bound by an offer.
The objective principle is a principle which states that the offeror need not expressly state that he wishes to be bound by his offer.
provided that a reasonable man believes that the offeror conducted himself in a manner in which he was assenting to the terms proposed by himself to the other party, and based this belief the other party entered into a contract with him, the offeror is bound by his offer.
What is an invitation to treat?
It is an expression of willingness to enter into negotiations that will likely culminate in a contract.
Name 3 characteristics of Invitations to treat.
- They are not definite or specific.
eg. request for information. - They cannot be accepted.
- The invitation to treat, is not meant to be binding. on the person who has made it.
List 6 examples of invitations to treat.
- Advertisements
- Auction Sales
- Invitation for tenders
- Goods displayed in shop windows / catalogs
- Declaration of Intentions
- Requests / Supply for information.
Acronym: AAID GR
What is an advertisement?
A notice or announcement in a public media forum, promoting a product/ service or publicizing an event or job vacancy.
What is an auction sale?
A process of buying or selling goods / services via a competitive biding system in which the auctioneer sells the bid to the highest or lowest bidder.
What is an invitation to tender?
A process for generating competing offers from potential suppliers or contractors who are looking to obtain an award of business activity in works, supply or service contracts.
What is a declaration of intention?
It’s a document giving details of what a person or group hopes to do or achieve.
What is meant by request or supply of information vis a vis invitation to treat? Explain with an example.
If I am selling my laptop, at say k5,000 and then someone asks me how much am selling it for, and I tell them the price, that does not amount to an offer, it’s merely an invitation treat.
Also, if that same person says i’d rather buy it at k3,000, that is also not an offer but an invitation to treat.
List 4 exceptions exist when it comes to invitations to treat.
- In unilateral contracts, an advertisement is an offer.
- Tenders specifically worded in a way that they can be construed with an intent to be binding, are offers.
- Auction sales without reserve are offers.
- If the supply of information intends an offer, it will be construed as such.
What is a unilateral contract?
It’s a contract in which the offeror promises to fulfill a promise based on the performance or occurrence of a specified act.
What is an auction sale without reserve?
It an auction sale in which the goods being sold have no minimum price set. The auctioneer in such cases makes an implied undertaking to make a sale to the highest bona fide bidder.
