S2: Offer

Question 1

What are the key features of a legally binding contract ?

Answer 1

Offer
Acceptance
Consideration
ITCLR
Certainty

Question 2

How is an agreement formed ?

Answer 2

Using offer and Acceptance

Question 3

What are the two types of contracts?

Answer 3

Bilateral contracts are where two or more parties have obligations under the contract.
Unilateral contracts are where only one party has an obligation infer the contract.

Question 4

What is the objective approach ?

Answer 4

It’s referred to as detached objectivity. It may suggest the offeror is considered to make an offer even though he has no subjective intention to do so. This is suggested by the case of Upton -on-Severn Rural District Council v Powell [1942].

Question 5

Cases which fall under the objective approach

Answer 5

• Storer v MCC in which Lord Denning stated ‘In contracts. you don’t look into the actual intent in a man’s mind, you look at what he said and did’.
• Trentham Ltd v Archital Luxfer Ltd [1993] in which Stern LJ states ‘The governing criterion is the reasonable expectations of honest men’.

Question 6

Who can an offer be adressed to ?

Answer 6

• An indivdiual
• A specified group/persons
• To the world
  This is suggested by the case of Carlill v Carboliv Smokeball Co. [1893]

Question 7

How can an offer be communicated ?

Answer 7

Through words, orally or in writing or then implied from conduct as suggested by the case of of Taylor v Laird (1856)

Question 8

What are the two main points when it comes to offers ?

Answer 8

• They must be suffieciently specific and comprehensive to be capable of immediate acceptance
• They must be made with the intention to be bound by mere fact of acceptance.

Question 9

What is an ITT ?
Key Cases

Answer 9

A statement made during or before precontractual obligations
-Spencer v Harding (1870)
-Clifton v Palumbo (1944)

Question 10

What are the two types of ITT ? Key Cases ?

Answer 10

Displays in Shops- Patridge v Crittenden
Ads - Fisher v Bell

Question 11

Exceptions for Displays

Answer 11

The general rule may be excluded by special circumstances.
A notice at the barrier and entrance to a car park may be an offer which can be accepted by driving in- Thornton v Shoe Lane Parking

Question 12

Auctions

Answer 12

This is the bid constituting an offer which the auctioneer may accept or reject. Sales of Goods Act 1979 s57 suggests ‘ A sale by auction is complete when the auctioneer announces its completion by fall of hammer or in other customary manner and until the announcement is made, any bidder may retract his bid’.

Question 13

Auctions with and without reserve

Answer 13

Fenwick v McDonald, Fraser and Co. - An item for sale without reserve
Barry v Davies - Auctioneer must accept the bid even if it’s at the highest price for sale without reserve.

Question 14

Tenders

Answer 14

A statement that goods are to be sold by tender or services which are to be secured isn’t normally regarded as an offer to sell to the person making the highest tender as suggested by the case of Spencer v Harding.

Question 15

Cases linking to Tender

Answer 15

Harvela Investements Ltd v Royal Trust Co. of Canada Ltd - Referential bids are illegal

Question 16

Rejections

Answer 16

Offers can be rejected via conduct or words or expressed orally/ in writing. Rejection destroys the original offer and if the agreement needs to be reached in offer, it will have to go through the whole process again.

Question 17

Counter Offer

Answer 17

This is where the offeree changes terms of offer and becomes offeror. It’s referred to in Hyde v Wrench and is known as the ‘mirror principle’.

Question 18

Enquiries

Answer 18

Enquiries are known as a request for information. Enquiries can be made before or after offer has been made.

Question 19

Key case for Enquiries

Answer 19

Harvey v Facey (1893)