Offer and acceptance

• What are the three ways an offer can come to an end?

  Rejection, lapse, and revocation
• What happens to an offer once it is rejected?

  It cannot be accepted unless the offeror makes the same offer again
• When does a rejection take effect?

  When it is actually communicated to the offeror
• What is a counter-offer?

  An attempt to accept an offer on new terms, which rejects the original offer
• What case established that a counter-offer rejects the original offer?

  Hyde v Wrench (1840)
• What happens when a counter-offer is accepted?

  The terms of the counter-offer become the terms of the contract
• What can cause difficulties in offer acceptance?

  When the offeror's standard terms differ from the offeree's standard terms
• How can one distinguish between a counter-offer and a request for information?

  A request for information does not reject the original offer
• What was the outcome of Stevenson, Jacques & Co. v McLean (1880)?

  The court held that the claimant's response was a request for information, not a counter-offer
• What are the two ways an offer may lapse?

  By passage of time or by the death of one of the parties
• When does an offer lapse due to passage of time?

  When acceptance is not made within the period prescribed by the offeror or within a reasonable time
• What happens to an offer if the offeror dies?

  If the offeree knows of the offeror's death, the offer lapses; if not, it may not
• What happens to an offer if the offeree dies?

  The offer lapses and cannot be accepted by the offeree's representatives
• Can an offeror revoke their offer after acceptance?

  No, an offer cannot be revoked after a valid acceptance
• When is revocation of an offer effective?

  Only upon actual notice reaching the offeree
• What happens when revocation is communicated by post?

  It takes effect from the moment it is received by the offeree
• How can revocation be communicated indirectly?

  Through words or conduct showing a clear intention to revoke
• What is a potential issue with indirect communication of revocation?

  The offeree may not know if the information from the third party is reliable
• When can an offeror revoke a unilateral offer?

  At any time prior to the completion of the required act
• What is an exception to the revocation of a unilateral offer?

  If the offeree has partly performed the obligation and is willing to complete it
• What case illustrates the exception to revocation in unilateral contracts?

  Errington v Errington & Woods [1952]
• What happens when a unilateral offer is made to the whole world?

  The offeror may have no knowledge of who is responding to the offer
• How can revocation be effective in unilateral offers made to the whole world?

  If the offeror takes reasonable steps to bring the revocation to the attention of potential offerees
• What are the key points regarding the termination of an offer?

  • An offer can end by rejection, lapse, or revocation.
  • Rejection takes effect when communicated; a counter-offer rejects the original offer.
  • An offer lapses if not accepted within a specified or reasonable time, or upon the death of a party.
  • An offer can be revoked at any time before acceptance.
  • In unilateral contracts, the offeror may not revoke once the offeree has started performing the act.