Offer, revocation & acceptance

Question 1

What is an Offer

Answer 1

A statement expressing willingness to enter into a legally binding contract

Question 2

Invitation to treat

Answer 2

A statement that invites others to make an offer, but is not an offer itself. It’s the pre contractual stage

Question 3

Adverts

Answer 3

Generally considered invitations to treat (Partridge v Crittenden) unless there is a promise to pay a reward and the wording shows an intention to be bound eg Carlill v Carbolic smoke ball

Question 4

Supermarket shelves

Answer 4

Generally considered invitations to treat, Fisher v Bell

Question 5

Auctions

Answer 5

The bidder makes the offer, and it is only accepted when the hammer falls, British car auctions v Wright

Question 6

Statement of price

Answer 6

Not considered an offer; it is a statement of the price, Harvey v Facey

Question 7

Communication of offer

Answer 7

The offer must be effectively communicated to the offeree, Taylor v Laird

Question 8

What must the terms be for an offer?

Answer 8

The terms of the offer must be clear and definite, Guthing v Lynn

Question 9

Revocation of Offer

Answer 9

The offer can be revoked until accepted, Routledge v Grant, and the revocation must be effectively communicated, Byrne v Van Tienhoven

Question 10

Revocation via Third Party

Answer 10

The offer can be revoked by a third party, as long as it is effectively communicated

Question 11

Lapse of Time

Answer 11

The offer ends if not accepted within a reasonable time, Ramsgate v Montefiori

Question 12

Death of Offeror

Answer 12

The offer ends if the offeror dies and the offeree learns of the death, unless it relates to a personal service

Question 13

How should an acceptance be communicated

Answer 13

The acceptance must be effectively communicated, Felthouse v Bindley

Question 14

Counter offer

Answer 14

Acceptance must be unconditional. Any attempt to change the terms of the offer results in a counter offer, Hyde v Wrench

Question 15

Acceptance by Conduct

Answer 15

Acceptance can be demonstrated through conduct before the contract has been agreed upon, Revellie v Anotech

Question 16

Acceptance via post

Answer 16

Acceptance via post follows the postal rules and requires proper stamping and proof of posting. Once letter is posted the acceptance takes place, Adams v Lindsell

Question 17

Acceptance via Electronic Communication

Answer 17

Acceptance via electronic methods occurs when the offeree is aware of the acceptance

Question 18

A promise not to revoke

Answer 18

A promise not to revoke an offer is not binding or revoking acceptance in general requires the offereee has not provided consideration, Dickinson v Dodds

Question 19

Detriment

Answer 19

If offeror requires a particular manner of acceptance it must usually be complied with for valid acceptance however if acceptance still done in a different mode then might be okay spending on circumstances. Case example Yates v Pulleyn.