Offer Of Contract Flashcards
What is a contract
A promise or a set of promises which the law will enforce
What does a valid contract require
Offer
Acceptance
Consideration
Intention to create legal relations
Unilateral contract
Only one of the two parties has an obligation to fulfill
Bilateral contract
Both parties have an obligation to fulfill
Subheadings of offer
The words of the offer must be certain
Who can make an offer
How long does offer last
An offer or invitation to treat
Request for further information - not an offer
Offer intro
An offer is the starting point of a contract it is a statement of the terms upon which the person making the offer is willing to enter the contract an offer can be verbal or written there are two parties to an agreement offeree and offeror
Offeree
The person who the offer is made to
Offeror
The person who makes the offer
The words of an offer must be certain
It must be clear an offer is being made words and phrases such as might be prepared to or may be able to are uncertain if the words are uncertain this will not be an offer
Case for the words of the offer must be certain
Gibson v mcc
Held mcc hadn’t made an offer they suggested the purchase was possible not definite mr Gibson was unable to purchase the house
AO3 The words of an offer must be certain
P: there is an argument that this decision is fair as the council didn’t intend on being legally bound
DP: this decision upholds legal principle as d could have contracts imposed on them that they didn’t intend on entering
WDP:however often the court is unsure whether the words used are uncertain or not the issues that can arise from this is the word certain could promote judicial creativity
VWDP: as the judges apply subjective view of whether the words are certain or not may lead to inconsistency this conflicts with ROL and lawyers may not be able to advise clients on likely outcome of case
Who can make an offer
An offer can be made by anyone this includes individuals and businesses offers can be made at notice or by a machine
Case for who can make an offer
Thornton v shoe lane parking
Held: c accepted the terms of the contract by purchasing a ticket so they were bound by the terms the claim was unsuccessful
How long does an offer lasts
An offer can only be accepted whilst it’s open in some contracts the time it is opened for will be specified in some contract the court will have to decide the offer is open once it is communicated by the offeror
The courts will look at timing on a case by case basis to determine if the offer is still open
Stevenson v McLean there was a breach of contract as the contract wasn’t effectively revoked
How long does offer last case
Taylor v laird
Held: he was entitled to nothing as no offer was communicated to his employer
How long does offer last AO3
the captain was not entitled to nothing as the offer was not made to his employer they did not have a chance to reject the offer
DP: if this is allowed lots of people will be entering contracts without an offer opening floodgates for breach of contracts
WDP: however morally it could be argued that he should be entitled to wages as he did carry out the work
An offer or invitation to treat
An offer is a statement of the terms of the contract it shows the offeror is prepared to become legally bound offer can be accepted
An invitation to treat is an indication that the person is willing to negotiate a contract so you are inviting people to make you that offer an invitation to treat can’t be accepted
Things that are invitation to treat
Advertisement
Shop window display
Auction
Advertisements
Generally an advert is invitation to treat
Case for advertisement
Partridge v crittenden
Held: this was an invitation to treat not an offer the offer is made by the person responding to the advert
Carlill v carbolic smokeball
Held: adverts can be offers if the words clearly state that an offer is being made depositing money in the account was evidence that they were making an offer
Advertisement AO3
P:the law can become inconsistent and therefore conflicts with the rule of law subjective opinions will be made by judges
DP: this opens the law to judicial creativity which conflicts with parliamentary sovereignty as the judges should be applying the law not making
WDP: However judges are allowed to excessive their constitutional role making decisions which they think are correct on a case by case basis rather than applying a one for all approach
Shop window displays / on a shop shelf
Items on display in a shop window or on a shop shelf are invitation to treat rather than an offer sellers are not obliged to sell items to customers eg refusing alcohol to underage children
Case of shop window displays/ on a shop shelf
Fisher v bell
Held: this was an invitation to treat so the shop keepers wasnt guilty of an offence
AO3 shop window displays/ on a shop shelf
P:regulating the sale items uphold policy as not everyone should be able to purchase such hazardous items such as knives for example shop keepers should be able to refuse sale of such items to children
DP: therefore regulating items to keep the public safe
WDP: however there are major loopholes n the law in fisheries v bell case why was the knife in the window with a price tag shop keepers are encouraging the public to buy the knife this does not uphold public policy
Auctions
at an auction the bidder makes an offer this offer isn’t accepted until the auctioneer bangs the hammer there fire items auctioned at invitation to treat
Auction case
BCA V Wright
Held: this wasn’t an offer it was an invitation to treat so the prosecution failed
Request for further information
Not an offer
If someone asks for further details about something which is listed for sale this is not an offer this is an enquiry
Request for further information case
Harvey v facey
Held: no contract was made when facey replied he was replying to the request for information not making an offer
AO3 Request for further information
P: There is not a clear distinction between offer and an enquiry as this will be decided in a case by case basis basis this can make the law confusing and people do not know where they stand
DP:this makes contract law inaccessible for those without legal qualifications lawyers may be unable to advise their clients of the likely outcome of the case
WDP: however the fact that it is decided on a case by case basis promotes freedom of contract and individuals should be bound to contracts they did not intend on making
Invitation to treat should exist
P: respects defendants wishes when they do not have intention of forming a contract
DP: If ITT did not exist this would allow claimants to make frivolous claims when the defendant did not intend to make a contract opening floor gates to claims which no merit
WDP: Furthermore ITT protects children and vulnerable adults are able to refuse sale of prohibited items therefore upholding public policy.
Invitation to treat shouldn’t exist
P: ITT allows the d to escape liability for breach of contract by merely arguing they are not making the offer but inviting offers may be regarded as a loophole in the law
DP: this will result in unjust and absurd decisions denying the claimant access to justice
WDP: furthermore it will be decided subjectively if an offer or ITT is being made this is an example of judicial creativity
How can an offer end
Revocation - include in essay
Rejection
Lapse of time
Death
Acceptance
Revocation
You can revoke an offer at any time unless it has been accepted revocation must be communicated to end the offer
Case for revocation
Dickson v Dodds
AO3 revocation
P:The offeror can revoke the offer before it is accepted this gives parties freedom of contract this is good because it upholds legal principle DP:because the courts are not forcing individuals to not have a choice of revoking through a third party is a lack of communication between a third party and they may be in a contract they think there not in
Rejection
If an offer is rejected it will end
Rejection case
Stevenson v McLean
Lapse of time
If the offer has a time limit and the time limit ends then the offer will end after a reasonable period of time has elapsed
Lapse of time case
Ramsgate Victoria hotel
Death
Death of an offeror will only end the offer if the offeree knows the person making the offer has coded otherwise you can still accept and claim from the deceased estates
Acceptance
If you accept the offer you then have an agreement
