Offers, Acceptance and Revocation Flashcards
What is a contract?
A contract is an agreement between two or more parties which is legally binding.
How may a contract be made?
Orally
In writing
By deed
By conduct
You need: 1. Offer 2. Acceptance 3. Intention to create legal relations 4. Consideration
What is invitation to treat?
May be seen as asking someone to make an offer
Advertisements are normally not regarded as an offer - Partridge v Crittenden (1968) - D placed an advert offering bramble finches for sale. S.6 of the Protection of Birds Act 1954 made it an offence to offer such birds for sale. He was charged and convicted of the offence but appealed against his conviction. - HELD: Conviction quashed, advert was an invitation to treat.
Can an advertisement be an offer?
Yes if there is evidence of intention.
Carlill v Carbollic Smokeball Company (1983) (CA) - £100 reward to any person who contracts influenza after using the ball 3 times daily for 2 weeks. - HELD: Advertisement constituted an offer to the world at large. Offer became a contract when it was accepted by Carlill using the smokeball.
What is a counter offer?
If the offeree changes the terms of the offer this is known as a counter offer. Cancels out the original offer.
Hyde v Wrench (1840) - D offered farm for £1000. C replied offering £950. D refused and C sought to accept £1000. D refused and C brought action. - HELD: No contract as a counter offer destroys the original.
What is acceptance?
Valid acceptance must be unconditional and communicated. Acceptance takes place when communicated (when the offeror has received acceptance).
Entores v Miles Far East Corporation (1955) (CA) - C sent offer by telex to purchase from England to Holland, D sent back telex from Holland to England accepting. - HELD: Acceptance occurs when communicated to offeree, therefore contract was made in England.
How does acceptance work with faxes and emails?
When the acceptance is received on the machine within office hours.
The Brimnes (1974) - HELD: Decided that communication of withdrawal of an offer by telex is effective when it could be read rather than when it is read.
Equally quick method of acceptance?
This is valid.
Tinn v Hoffman (1873) - D offered to sell P iron and requested reply “by return of post” - HELD: An equally expeditious method will suffice, e.g. telegram or verbal message
What is the postal rule?
The postal rule states that a letter of acceptance is effective from the moment it is posted, even if the letter is delayed, lost or never read.
Adams v Lindsell (1818) - C’s acceptance posted on day of receiving D’s offer, D sold wool to X before receiving C’s acceptance letter. - HELD: A contract was concluded as soon as acceptance was posted. D’s bound from day C posted.
Method of acceptance
If the offeror says that acceptance must be communicated in a particular way, if the offeree doesn’t use that way - acceptance is invalid.
Holwell Securities v Hughes (1974) (CA) - D wanted “notice in writing” up to 19th April, C posted letter 14th but it was lost in the post. - HELD: Acceptance would only take effect when actually received by the offeror.
Good way of displacing/ousting postal rule.
What is revocation?
To revoke the offer means to withdraw the offer.
Rule 1 of revocation?
The offeror may revoke the offer at any time before the acceptance - even if they agree to keep the offer open for a period of time.
Routledge v Grant (1828) - D offered to buy C’s house for a specific price within 6 weeks. - HELD: D was not bound to keep the offer open.
Rule 2 of revocation?
Revocation must be communicated to the offeree.
Byrne v Van Tienhoven (1880) - D posted letter to C revoking his offer but C’s acceptance telegram was sent before he received D’s letter. - HELD: There was a binding contract because revocation could only take effect on communication.
Revocation by 3rd party?
Revocation can be done by a reliable 3rd party.
Dickinson v Dodds (1876) (CA) - Dodds made an offer to sell house to Dickinson, offer open until Friday 9am. Dodds sold the house Thursday and Di’s agent told him this. Friday Di delivered his acceptance. - HELD: There was no contract, it had been revoked by the communication from the agent.
