Offers Flashcards
What is an offer?
An intimation, by words or conduct, of a willingness to enter into a legally binding contract, and which in its terms expressly or impliedly indicates that it is to become binding on the offeror as soon as it has been accepted by an act, forbearance or return promise on the part of the person to whom it was addressed.’
Willingness to enter into a legally binding contract –> indiction of intention
Does not require further detailed negotiation
Has an offer been made?
Objective assessment needed to be made
EXAMPLE –> Moran v University College Salford (No 2) The Times, 23rd Nov 1993 –> Moran was a mature student and applying to University and was rejected by 5 of the 6 unis he applied to but got an unconditional offer from Salford Uni in which he accepted –> however when he moved to uni it came out that they were actually supposed to reject Moran rather than accidentally giving him an unconditional offer –> subjective intention was to reject him but objective intention was to give him a place according to a reasonable person as he got the offer
Invitation to treat
If there is no intention to be bound upon acceptance such statements are known as invitations to treat
E.G. ‘would you like to buy my car? = invitation to treat
HOWEVER ‘Blue Ford Focus for sale, 1.8l, 20,000 miles, 2012 reg, will sell to highest bid received 1st October’ = offer
Distinguishing offers and invitations to treat - 1
Is there no requirement for further negotiation?
Harvey v Facey [1893] AC 552 (statement of ‘lowest price’ not an offer) –> because there is more negotiation needed
Owen v Tunison 131 Me 42, 158 A 926 (1932) (‘It would not be possible for me to sell unless I was to receive $16,000 cash’ – not an offer) –> not the same as saying ‘I WILL SELL’
Distinguishing offers and invitations to treat - 2
Does the language clearly show intention to be bound?
Gibson v Manchester City Council [1979] 1 WLR 294; Storer v Manchester City Council [1974] 3 All ER 824 –> (‘May be prepared to sell…’ vs ‘If you sign the agreement and return it to me I will send you the Agreement signed on behalf of the corporation…’)
Lefkowitz v Great Minneapolis Surplus Store 251 Minn. 188, 86 NW 3d 689 (1957) –> (‘Saturday 9 AM Sharp/3 Brand New/Fur Coats/Worth $100/First Come/First Served/$1 Each’) –> offer made because language is clear
Carlill v Carbolic Smoke Ball Co. [1892] EWCA Civ 1
Was Ms Carlill entitled to £100 when she caught the ‘flu after using the smoke ball?
CSBC place ad in Pall Mall Gazette: £100 paid to anyone who uses the smoke ball as directed for two weeks and catches influenza or a cold
£1000 deposited at the Alliance Bank ‘to show our sincerity in the matter’
Was Ms Carlill entitled to £100 when she caught the ‘flu after using the smoke ball? –> YES because, intention to create contract was made because wording was clear and no requirement to negotiate as all she had to do was catch flu which she did and then would be entitled to £100
