Offer

• An offer is a clear statement of the terms by which a person is prepared to be bound by a contract. Professor Treital states that it is 'an expression of willingness to contract on certain terms made with the intention that it shall become binding as soon as it is accepted.
• The person making the offer is known as the offeror and the person receiving the offer is known as the offeree.
• There are two types of offer: the most common type are bilateral offers where each party promises to fulfil an obligation in return for something of value (Gibson v Manchester City Council). Alternatively, there are unilateral contracts. These are where there is a promise to pay exchanged for an action (Carlill v Carbolic Smokeball Company).
• On the other hand, an invitation to treat is an indication that a person is willing to negotiate a contract with another but that they are not yet willing to make a legal offer. It includes situations where the terms are not certain enough to be an offer (Gibson v Manchester City Council).
• The law has determined certain situations amount to invitations to treat rather than offers such as; adverts (Partridge v Crittenden), displays in shop windows (Fisher v Bell), goods on display on shop shelves (PSGB v Boots). Requests for information (Harvey v Facey) are also not deemed offers and simply things that go on before the contract is agreed.
• The law has established certain rules for an offer to be valid. Firstly, the terms of the offer must be certain. This means the terms must be clear and unambiguous. This is illustrated in Guthing v Lynn where the offer of paying a further £5 if the horse was 'lucky' was deemed too vague.
• Secondly, the offer must be communicated to the offeree. An offer can be made by any method, by a person or a machine (Thornton v Shoe Lane Parking), written oral or by conduct. If can be specific (made to one person or group of people) or general and not limited as to whom it is directed at. Ultimately, if an offeree does not know about an offer then they cannot accept it (Taylor v Laird)
• Finally, the offer must not have been terminated i.e come to an end. The offer must still be in existence when it is accepted. An offer can be revoked (withdrawn) at any time before acceptance (Routledge v Grant) provided withdrawal is communicated to the offeree (Byrne v Van Tienhiven) and this can be by a reliable third party (Dickinson v Dodds). However, if the offer is a unilateral one i.e acceptance is via performance of an act, the offer can't be withdrawn once the offeree has started his act (Errington v Erinngton & Woods).
• Offers can also come to an end if the offeree dies (Bradbury v Morgan), as well as the rejection of the offer. If there has bene a lapse of time and the offer has not been accepted after a reasonable time has passed then this will terminate the offer (Ramsgate v Montefiore), as well as the counter-offer being made (Hyde v Wrench) or acceptance of the offer.