Offer and acceptance

    Cards (39)

    • Trust: a contract is made between two parties to benefit a third party.
    • Offer and acceptance requires a 'mirror image rule' to be satisfied, meaning an offer is made and the acceptance matches the offer directly, resulting in a consensus ad idem- a meeting of minds.
    • An offer is a willingness to contract on certain terms with the intention it shall become legally binding.
    • There are two types of offers: unilateral, made to the whole world, and bilateral, made to only one person or group and only they can accept.
    • An offer can be express, it is in a verbal or written format, or implied from conduct or circumstances.
    • Terms of the offer must be certain.
    • An invitation to treat is an invitation to others to make or negotiate an offer.
    • Examples of invitations to treat are goods displayed or advertised, a customer agreeing to buy goods at a particular price, and auctions.
    • When the offer is accepted, the offer ends and a contract is formed.
    • If the offer is refused, the offer then ends.
    • An offer can be withdrawn using the same method in which the offer was made.
    • An offer can not be withdrawn where acceptance is an ongoing act.
    • If an offer is followed by a counter offer, the original terms of the offer are changed and therefore brings it to an end.
    • In a battle of the forms, the last offer sent will be seen as the official contract terms.
    • Requesting more information regarding the offer is not a counter offer and therefore the offer remains open.
    • An offer ends if it was only open for a limited time or the time passed between the offer an the acceptance is not reasonable.
    • If a person dies, offers of a personal nature will end, however if it is of a general nature, it does not need to end as it can still be honoured.
    • An offer ends if the main term of the offer is not fufilled or is significantly altered.
    • Agency: an agent will enter into contracts on behalf of another person, the agent can not sue or be sued.
    • The terms of acceptance must match the offer exactly- if they don’t, it is a counteroffer.
    • Special cases: jackson v horizon holidays
    • The agreement must be certain meaning one must be able to identify what both parties have agreed to.
    • Ways to avoid the rule on privity: the contracts act 1999: s1(1)- a person may enforce a term of a contract if they are explicitly stated as receiving a benefit from the contract, s1(2)- also states that the parties must intend for the term to be enforced by said third party.
    • Ignorance of an offer- there is no contract where a person preforms the acceptance but is not aware of the offer e.g.
    • Acceptance by mail is effective as soon as the letter is posted.
    • Legal intent is assumed in commercial agreements, but not in social or domestic agreements.
    • The acceptance must be communicated to be effective.
    • Instant methods of acceptance- e.g.
    • Acceptance is effective if it is through conduct.
    • Non instant methods of acceptance- e.g.
    • Privity means that only someone who is apart of the contract can claim, therefore a third party can not claim (dunlop v selfridges)
    • Lord denning explained in entores that a message has to be received to be classed as accepted
    • Consideration is something given by one party in return for something else from the other party.
    • Rules of consideration: consideration can not come from an existing duty, it must be sufficient, and it must be tangible or identifiable.
    • Consideration can not be past- if the act was done before the contract, it was not consideration.
    • To be apart of the contract, the party must be privy to the contract and provide consideration.
    • No prescribed acceptance- no method of acceptance has been stated so any reasonable method will be accepted
    • Collateral contracts: a second contract can be used to avoid the rule on privity.
    • Prescribed acceptance- the acceptance must take a certain format or else it will not be accepted (Parkinson stove co)
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