offer
Cards (26)
- Agreementtraditional analysis- traditionally agreement has been analysed in terms of offer and acceptance, i.e. an offer, once accepted, leads to a legally binding contract.
- offeris a statement to the effect that the person making it (the offeror) is willing to contract on the terms stated, as soon as these are accepted by the person to whom the offer is addressed (the offeree).
- offerThe existence of an offer is subject to an objective test, even if the offer is made inadvertently (unintentionally) it will be capable of acceptance providing that a reasonable person would be induced to believe that the offeror intended to make the offer.
- offer* An offer can be made in writing, by word of mouth or by conduct.* The offer can be made to an individual, a group of persons or to anyone who cares to accept it.
- Carlill v Carbolic Smoke Ball Company (1893) 1 QB 256* Offers may arise in unilateral or bilateral agreements
- legal principleTHE TERMS OF THE OFFER MUST BE CERTAIN OR IT WILL FAILWhite v Bluett (1853) 23 L.J. Ex. 36A father agreed not to make his son repay money he had borrowed, if the son promised not to keep boring him with complaints.Held: The father’s promise was too vague to be enforceable.
- legal principle 2Scammel v Ouston (1941) AC 251, All ER 14HL held: the terms used were too vague to signify any true agreement. The phrase ‘hire purchase terms’ could be used to describe many different arrangements. It left open such questions as whether payment could be made on a weekly, monthly or yearly basis; whether there would be an initial deposit; and what the interest rate would be. Therefore the parties could not be said to have made a sufficiently certain agreement to constitute a contract.
- INVITATIONS TO TREATInvitations to enter into negotiations to do business (or invitations to others to ‘make an offer’), must be distinguished from offers.
- examples of invitations to treat
- DISPLAY OF GOODS FOR SALE:
- A MERE SUPPLY OF INFORMATION
- AUCTIONS
- TENDERS
- DISPLAY OF GOODS FOR SALE
In a self service storePharmaceutical Society of GB v Boots Cash Chemists (1952) 2 QB 795, (1953) All ER 482 CACA held: The shelf display was merely an invitation to treat. The offer was made by the customer when medicines were presented at the cash desk, and was only accepted by the shop/cashier at the cash desk. Since a pharamacist was supervising at that point, no offence had been committed.He wasn’t successfully prosecuted- DISPLAY OF GOODS FOR SALE:
in a shop windowFisher v Bell (1961) QB 394B displayed flick knives in his shop window and was convicted of the criminal offence of offering such knives for sale.CA held: The display of an article (goods) at a marked price was only an invitation to treat and not an offer, so the conviction was overturned.- DISPLAY OF GOODS FOR SALE:
In an advertisement or catalogue (inc. websites)Partridge v Crittenden (1968) W.L.R. 1204A magazine advertisement stated, ‘Bramblefinch cocks and hens, 25s each’. This was a protected species, so the advertiser was charged with unlawfully offering for sale a wild bird, contrary to the Protection of Birds Act 1954.Held: His conviction was quashed on the grounds that the advertisement was not an offer but merely an invitation to treat.- 2. A MERE SUPPLY OF INFORMATIONHarvey v Facey (1893)A.C. 552,P.C.C to D telegram, ‘Will you sell us Bumper Hall Pen? Telegraph lowest cash price’. D replied, ‘Lowest price for BHP £900.’ C sent back, ‘We agree to buy BHP for £900 asked by you. Please send us your title deeds.’PC (privy council deals with countries in the common wealth then now = supreme court) held: There was no contract. D’s telegram was merely a statement of what the minimum price would be if D eventually decided to sell. It was therefore not an offer which could be accepted by the third telegram.
- Negotiation is invitiation to treat not an offer, merely giving info is invitation to treat
- What is the case name associated with the council's letter regarding the sale of a house?Gibson v Manchester City Council (1979)
- What did the council's letter state regarding the sale of the house?It stated they 'may be prepared to sell you [your council house] for £2,181'
- What action did the council tenant take after receiving the letter?The tenant asked the council to carry on with the purchase
- What was the council's decision regarding selling houses to tenants?They decided to stop selling houses to tenants
- What did G claim regarding the council's letter?G claimed the letter was an offer accepted by him
- What was the House of Lords' conclusion regarding the council's letter?The Council had not made an offer; it was merely an invitation to treat
- What did the House of Lords determine the letter represented in the context of negotiations?It was merely one step in the negotiations for a contract
- AUCTIONSAdvert for forthcoming auction amounts to a statement of intention and not an offer.
- AuctionsHarris v Nickerson (1873) L.R.8 Q.B. 286Auctioneers request for bids amounts to an invitation- the offer being made by the bidder. The bid may be revoked any time before acceptance.
- AuctionsPayne v Cave (1789) 100 E.R. 502In the case of an auction without reserve the auctioneer makes an implied collateral warranty that he will sell to the highest bidder.
- 4. TENDERSA request or advertisement for tenders (inviting parties to make offers to supply goods or services) is generally regarded as an invitation to treat, as there is no obligation to accept any of the tenders put forward.
- TENDERSTenders may be of 2 types:
- A temporary contract or employment, aren’t working in the company, but for them,
2.Invitation for tender- an ad of some kind of a good/service provideri) a definite offer - once accepted this leads to a legally binding contract.ii) a standing offer eg. to supply goods or services as and when required, contract with said company doesn’t have a fixed supply agreement, offer of acceptance at each stagein which case a new contract is formed each time an order is placed.