Offers and Acceptances Flashcards
Requirement for an offer?
Must have clear and unequivocal wording (‘will’ rather than ‘may’
What are not offers?
Auctions, advertisements (but they can be unilateral offers), display of goods, price lists, price quotations, responses to queries, invitation to make offers or bids
How can offers be revoked?
- By the offeror, either by expressly informing the offeree (and revocation is effective upon their receipt), or where the offeree indirectly finds out anything from a reliable third party that would (to a reasonable person) amount to conduct intending revocation
*Offerors cannot revoke a) collateral contracts where consideration has been provided e.g. a holding deposit; or b) a unilateral offer where the offeree has already started performance - By the offeree, by a) expressly informing the offeror (effective upon their receipt), b) making a counteroffer (but note that a mere request for information is not a counteroffer), or c) where they fail to accept the offer within the specified timeframe (or a reasonable timeframe if nothing was said)
- Death of either party
- Illegality, including failure of implied terms e.g. to legal title
- Frustration
Can there be an acceptance if the offeree was never aware of the offer?
No
How can the offeree communicate their acceptance?
If there is a specified method, then they must follow it unless the method they choose is no less disadvantageous. If there is no specified method, then the method they choose only needs to be reasonable.
Acceptance can be by conduct, but only where the offeror is aware of it.
Postal Rule: that the acceptance is effective upon posting, unless a) the offer specifies that acceptance will be ‘on receipt’, b) the offeree made a mistake during posting e.g. wrong address, or c) it was not reasonable to make an acceptance by post.
Instantaneous Communications: acceptance is effective upon offeror’s receipt
Can an offeree assign their right to accept?
Never, except in agency situations.
