Offer (Paper 3-Section B Topics 1-4) Flashcards
Define Offer
‘A statement of the terms upon which the person making the offer is willing to enter the contract.’
Define Offeree
The person who the offer is being made to.
Define Offeror
The person who makes the offer
The words of an offer must be what?
Certain
Give the held for: Gibson v MCC
MCC hadn’t made an offer as the words suggesting purchase was possible were not definite.
Who can make an offer?
Anyone including individuals and business.
Offers can be made by notice or at a machine.
Give the held of: Thornton v Shoe Lane Parking
C accepted the terms of the contract by purchasing a ticket, so was bound by the terms- the clam was unsuccessful.
How long does an offer last?
The offer is open once it is communicated so can only be accepted whilst it is open; time may be specified in some contracts.
Give the held of: Taylor v Laird
The C was entitled to nothing as no offer was communicated to the employer.
Give the held of: Stevenson v McLean
There was a breach of contract as the offer wasn’t effectively revoked.
Define an invitation to treat (ITT)
ITT is an indication that the person is willing to negotiate a contract- it cannot be accepted.
Is an advert an ITT?
Yes- unless it is obvious that an offer as indicated.
Giver the held of: Partridge v Crittenden
This was an ITT, not an offer- the offer is made by the person responding to the advert.
Give the held of: Carlill v Carbolic Smokeball Co.
The Smokeball Company made an offer and were liable as depositing money into an account in preparation for claims evidenced this.
Are shop windows an ITT?
They are an ITT - sellers are not obligated to sell items to customers e.g. alcohol.
Give the held of: Fisher v Bell
This was an ITT so the shop keeper wasn’t guilty of an offence.
True or False: Items on a shop shelf are NOT an ITT
False- they are an ITT, the customer is making the offer when they take the item to the checkouts. The hop has the ability to accept/decline the offer.
Give the held of: PSGB v Boots
Boots were not liable. The offer was made by the customer when they took the item to the till.
Are auctions an ITT?
Yes- the bidder makes an offer and this offer isn’t accepted until the auctioneer bangs the hammer.
Give the held of: BCA v Wright
This wasn’t an offer, it was an ITT so the prosecution failed.
Give the held of: Harvey v Facey
No contract was made as when replying, Facey was replying to the request of information.
How can an offer end?
Revocation
Rejection
Lapse of Time
Death
Acceptance
How can an offer end through Revocation?
An offer can be revocated at any time before acceptance. It must be communicated by the offeror or by a reliable 3rd party to the offeree for revocation to be effective (Routledge v Grant).
Give the held of: Rutledge v Grant
An effective revocation took place even though it was within the 6 week period; the offer ended so it could not be accepted.
How can an offer end through Rejection?
Once an offer is rejected it can’t be accepted by the person rejecting the offer. A counter offer is a rejection of an offer.
How can an offer end through a Lapse of Time?
Offer can come to an end once a fixed period expires there is no offer to accept.
How can an offer end through Death?
If the OFFEREE dies the offer ends and those dealing with his estate cannot accept on his behalf, however, executors/administrators can make a new offer.
If the OFFEROR dies, acceptance can still take place until there is a knowledge of the death.
How does an offer end through Acceptance?
Once an offer is accepted there is an agreement and assume the other essential features of a valid contract have been fulfilled; there is a legally binding contract.
