Offers

Question 1

Guthing v Lynn (1831)

Answer 1

In this case, the buyer made a promise to give the seller an extra £5 for the horse ‘if the horse was lucky for me’. It was held that the phrase ‘was lucky for me’ was too vague to be enforceable as it was hard to know what the buyer meant by the word ‘lucky’.

Question 2

What case is used as an example of previous dealings and the nature of the relevant trade

Answer 2

Hillas v Arcos (1932)

Question 3

Hillas v Arcos (1932)

Answer 3

Here a contract to supply wood for one year contained an option permitting the buyer to buy more wood next year. There were no other terms. It was held this was a valid offer as the terms could be clarified by looking at the previous dealings between the parties as well as from the custom and practice of the timber trade.

Question 4

What case is used as an example of an arbitration clause?

Answer 4

Foley v Classique Coaches (1934)

Question 5

Foley v Classique Coaches (1934)

Answer 5

The price of petrol was left to be agreed ‘from time to time’. The contract was binding as there was a mechanism in place (arbitration) to solve any disputes.

Question 6

What cases are used as an example of invitations to treat?

Answer 6

Patridge v Crittenden (1968)
Fisher v Bell (1960)
Pharmaceutical Society (GB) v Boots Cash Chemists (1953)

Question 7

Patridge v Crittenden (1968)

Answer 7

The defendant put an advert in a magazine offering for sale some birds. It was an offence to sell these birds under the Wild Birds Act 1954. The defendant was found not guilty as the advert was not an offer, it was merely encouraging others to make an offer to him. The advert was an invitation to treat.

Question 8

Fisher v Bell (1960)

Answer 8

The defendant, having placed a flick knife for sale in his shop window, was accused of ‘offering for sale an offensive weapon’. It was held he was not guilty as he had not made an offer. The placing of a flick knife in a window was an invitation to treat, not an offer.

Question 9

Pharmaceutical Society (GB) v Boots Cash Chemists (1953)

Answer 9

Boots were prosecuted for selling drugs without supervision of a registered pharmacist. It was held they were not guilty as the medicines on display were just invitations to treat. The offer was made when the customer presented the goods at the till, at which a pharmacist was present, and the pharmacist could refuse the customer’s offer if need be.

Question 10

What cases are used as examples of negotiations?

Answer 10

Harvey v Facey (1893)
Gibson v Manchester City Council (1979)
Bigg v Boyd Gibbons (1971)
Carlill v Carbolic Smoke Ball Co (1893)

Question 11

Harvey v Facey (1893)

Answer 11

The case concerned the sale of land. The land was not advertised for sale, but the claimant sent a message asking the lowest price that would be accepted. The defendant replied saying the lowest cash price for Bumper Hall Pen was £900. The claimant then sought to accept this ‘offer’ and sued when the defendant refused to sell. It was held that there was no contract as the statement regarding the price was a reply to a request for information.

Question 12

Gibson v Manchester City Council (1979)

Answer 12

An existing council tenant contacted the council regarding the purchase of his council house. The council replied stating that ‘the council may be prepared to sell’ and invited a formal application. The tenant applied but his application was turned down due to a change of council policy. It was held that the council’s letter was not an offer, the offer was made by the tenant which the council rejected.

Question 13

Bigg v Boyd Gibbons (1971)

Answer 13

The parties were negotiating over the sale of a piece of land. The claimant wrote to the defendant that for a quick sale he would accept £20,000. The defendant wrote back agreeing to pay £20,000 and the claimant then wrote thanking the defendant for ‘accepting my offer’. It was accepted that a binding offer had been made.

Question 14

Carlill v Carbolic Smoke Ball Co (1893)

Answer 14

A smoke ball company advertised their smoke ball for sale stating that it could prevent influenza. They promised to pay £100 to any person who, having correctly used the smoke ball, caught influenza. They also placed the money in a local bank was taken as intention of an offer. Mrs. Carlill bought the smoke ball, used it, then caught influenza. She then claimed the £100. The company said the advert was a advertising puff but it was held that the advert was an offer. The placing of the money in a bank was taken as intention of an offer.

Question 15

What case is used as an example of counteroffers?

Answer 15

Hyde v Wrench (1840)

Question 16

Hyde v Wrench (1840)

Answer 16

The defendant offered to sell his farm for £1,000. The claimant said that he only wanted to pay £950 but then came back saying he would pay the full price. It was held that the statement to only pay £950 was a counteroffer which destroyed the original offer. The subsequent statement to pay the original price was a fresh offer.

Question 17

What case is used as an example of lapse of time?

Answer 17

Ramsgate Hotel v Montefiore (1866)

Question 18

Ramsgate Hotel v Montefiore (1866)

Answer 18

A defendant applied for shares in a company in June but did not hear back until November. It was held that no contract had been formed as the time between offer and acceptance was too long.

Question 19

What case if used as an example of revocation?

Answer 19

Dickinson v Dodds (1876)

Question 20

Dickinson v Dodds (1876)

Answer 20

Dodds made an offer to sell property to Dickinson but sold it to a third party before Dickinson had time to respond. Dickinson heard about the sale from a third party but still tried to accept the offer. The offer had been revoked so could not be accepted.