Theme 2 PT 1 Continued Flashcards
CATALOUGE MARKETING:
1) Agreement to supply goods &
services, not in person (telephone/postal order), where consumer did not have an opportunity to inspect good/service before
conclusion of contract.
2) Disclosure of certain info: Suppliers
name, license or registration number,
physical address, refund policy etc
General Rule For Advertisements:
1) One may make an offer to the public at large and then conclude a contract with specific members of the public who respond to the offer.
2) Advertisements, auctions, rewards.
General Rule for Advertised
1) An advertisement constitutes merely an invitation to do business rather than an offer
2) Whether a particular statement constitutes an offer depends on what
the intention behind the statement was OR the impression reasonably created by it in the mind of the person to whom it was directed.
Crawley v Rex
1) CPA: S 30(1) prohibits bait marketing – supplier cannot advertise goods & services as being available at a specified price in manner which would mislead or deceive.
2) If the supplier places a limit on the
availability of goods, it must make those goods or services to the extent of the expressed limit.
Pharmaceutical Society of Great Britain v Boots Cash Chemists
1) The customer makes an offer to purchase by presenting the articles which she wishes to purchase for payment.
2) Therefore, the shopkeeper makes an invitation to do business and the customer makes an offer to purchase.
3) The business then accepts the offer.
4) Offer accepted= Consensus/agreement.
Offers to the Public:
1) ADVERTISEMENTS
2) Call for tenders
3) Promise of reward
4) Auctions
Call for tenders
1) An invitation to the public to submit a tender for work to be done is not an offer that is open to acceptance by the highest
bidder.
2) Call for tenders are an invitation to the public to make offers.
Promise of reward
Bloom v American Swiss Watch Co
1) The court held that the offer had not been accepted by the first person who supplied information to the police because he had at the time been unaware of the offer.
2) Bloom gave the information BEFORE he became aware of
the notice
Who makes the offer? The
auctioneer or the bidder?
1) To answer this, it is
imperative to distinguish
between a simple auction
and an auction subject to
conditions (with or without
reserve).
SIMPLE AUCTION:
1) Bidder makes an offer to the
auctioneer
2) S 45(3) CPA: Affirms this, sale by auction is considered to be complete when the hammer falls until this is done, a bid may be
retracted
AUCTIONS ATTACHED TO CONDITIONS:
1) With reserve
2) Without reserve
With reserve:
1) Reserve price is set, the thing is
sold to the highest bidder
2) Provided the offer (bid) is higher than the reserve price.
3) Bidder makes the offer, S 45(5) & S 45(4) of the CPA.
TERMINATION OF AN OFFER
1) REJECTION
2) DEATH
Without reserve:
1) Article will be knocked down
to the highest bidder. In this instance, the
auctioneer is considered to be making an offer to the sell to the highest bidder.
TYPES OF REJECTION
1) Express
2) Implied
Implied rejection
1) If offeree makes a counter offer
DEATH:
1) Either offeror or offeree.
2) Generally offer not legally binding
NB: if offeror promised not
to withdraw offer (option) then it is binding on the deceased estate
PASSAGE OF PRESCRIBED REASONABLE TIME:
1)Offer not open indefinitely.
2) If time prescribed without acceptance – offer lapses on expiration of time stipulated.
2) If no time indicated for acceptance – offer terminates after reasonable period
REVOCATION:
1) Offer may be withdrawn at any time before acceptance, except if it is subject to an option.
2) Takes effect only once communicated to the offeree.
3) If offeree accept before becoming aware of a revocation = valid binding contract
LOSS OF LEGAL CAPACITY TO ACT:
1) Offeror/Offeree.
ACCEPTANCE OF OFFER:
1) Once offer is accepted, a contract comes into being and the offer
is terminated
