Offer

• when is an offer made

  -when offeror tells the offeree the conditions they're willing to agree to

  -typically spoken/written form that they've committed to the terms if the offeree accepts

  -can be directed to a specific person, group or anyone in general as long as they're aware

  • must be clear and without certainty e.g. words such as may/might- gibson v manchester city corporation
  • can't be accepted if not clearly communicated to the offeree- taylor v laird - communication of change in job is crucial
  • can be made by written document/stated verbally/machine - thornton v shoe lane parking
• who/how can make an offer

  • can be made by anyone including machine (thornton v shoe lane parking)
  • can be made to named individual (gibson v man city) or the world at large (carhill v carbolic smokeball)
• offer v invitation to treat

  -invitation to treat invites the other party to make an offer

  -not an offer, cant be accepted and not legally binding

  -simply an invitation to open negotiations
• 1. advertisments

  • generally an invitation to treat
  • advertiser can decide whether to accept/reject offer- partridge v crittenden
  • in cases where advert explicitly signifies a serious offer, it may become an offer -> carhill v carbolic smokeball

  -> usually unilateral offer
• 2. goods on display

  • display = invitation to treat
  • picking up and taking to purchase is an offer the shop owner can accept/reject

  pharmaceutical society of GB v boot cash chemists
• 3. goods on display in a shop window

  
  

  • invitation to treat, customer has to attempt to purchase and shop owner accept/reject

  fisher v bell - even with price tag its an invitation to treat
• 4. auctions

  • calls for bid is invitation
  • bid is offer
  • fall of hammer is acceptance

  british car auctions v wright
• 5. request for information

  is not an offer, just an enquiry

  harvey v facey- enquiry about lowest offer is not an offer
• how long does an offer last

  ->must be accepted in time frame

  ->once concluded, offer is invalid

  ->established when communicated to offeree who must be aware of its existence for communication to be effective (taylor v laird)

  ->exact time critical (stevenson v mclean)
• counter offer

  -> altering terms is a counter offer not acceptance

  ->terminates original offer and creates a new one

  -> if counter offer rejected, original offer unavailable for acceptance

  • can then offer new offer with original terms- hyde v wrench
  • making enquires is not a counter offer- stevenson v mclean
• how an offer ends

  1. revocation
  2. rejection
  3. lapse of time
  4. death
  5. acceptance
• 1. revocation

  -withdrawal of offer-> can be cancelled before accepted

  -offeror needs to inform offeree of withdrawal - routledge v grant

  ->implications for global offers such as carhill v carbolic smoke ball

  -can end in 3 ways

  1. setting a time limit 2. passing of reasonable time 3. publishing revocation in the same way the offer was made
• 1. revocation

  • can make separate contract to promise to sell to them only (collateral contract)
  • can be enforced if offeror refuses to sell/ sells to someone else
  • communication of an offers withdrawal doesn't have to come directly from the offeror- can be done by reliable 3rd party e.g. estate agents
  • needs to show the communication occurred and that it would be reasonable for the offeror to take it seriously - dickinson v dodds
• 2. rejection

  -> once rejected it cannot be accepted- hyde v wrench

  -> where offer is made to multiple people, rejecting one person doesnt mean rejecting everyone

  -> rejection must be communicated to the offeror before its effective
• 3. lapse of time

  -> can come to an end by lapse of time

  -> if fixed time for duration is accepted, once this expires there is no offer to accept

  • or look at reasonable time for offer to remain open- Ramsgate Victoria Hotel v Montefiore

  -> if there is substantial delay between offer and acceptance, offer may lapse and become invalid
• 4. death

  -> if offeree dies, then offer ends and estate can't accept offer on his behalf

  ->executors of estate can make a new offer

  ->acceptance still takes place until offeree learns of offeror death