Week 2, offers Flashcards
offer defenition
an expression of the terms under which a person is prepared to enter into a contract with another person, and be bound by their acceptance on those terms
What is agreement based on
voluntary assumption of rights and obligations
What test is used to determine whether an agreement has been made
An objective test (reasonable persons assessment of facts)
What does an offer require
A firm promise, definite or ascertainable terms, can be accepted as they stand, made to specific individual, class of individual or the public, invites an exchange, indicates a willingness by the offerer to be legally bound
Distinguishing offers from other conduct
Mere puff, supply of information, quotes, invitations to treat
Why do offers must be communicated?
The offeree must be aware of the terms of the offer, and must accept the offer in reliance on the offer
cross-offers
when two parties forward offers to one another at the same time, and in the same or substantially the same terms. two different offers but no acceptance, so no contract.
What can the offeror do?
Wait for the offeree’s response, revoke the offer
When can offers be revoked
any time before acceptance, however, the offerer must make it aware to the offeree that it is being revoked, or they may hear from a ‘reliable source.’
Prevention from withdrawing offer
If there is a seperate contract to keep it open, such as if the offeree has paid to keep it open OR if the promise to keep it open was made by deed.
Revocation with unilateral contracts
offer can be revoked at any time prior to acceptance, however, the offeree may seek an award of damages or injunction if it causes them detriment
what can the offeree do?
Reject it
Make a counter offer
Ask for more information or clarification
Do nothing
Accept the offer in its full terms
Counter offer
A counter offer then nullifies the previous offer, and if the offeree accepts the previous offer, there will be no contract
objectivity requires
looking at intention from a standpoint of a reasonable person and disregarding ‘uncommunicated subjective motives or intentions’ : Ermogenous v Greek Orthodox Community (2002) at [25].
