Offer

• Once an offer is communicated to the offered by the offeror, the offered can choose whether to accept that offer not until the offer ends
• Offer - A proposal (or promise) showing a willingness to contract on firm and definite terms
• Offeror - the person who makes the offer
• Offeree - the person to whom an offer is made
• Invitation to treat - an indication that one person is willing to negotiate a contract with another, but that they are not yet willing to make a legal offer
• Offer and invitation to treat

  The law distinguishes between an offer and an invitation to treat. Invitation to treat is not an offer and therefore it cannot be accepted to make a contract

  (Gibson v Manchester City council)
• Advertisements (Partridge v Crittenden)

  An advertisement cannot be an offer, and this is this only an invitation to treat.

  However, if there is an advertisement that contains a clear indication that there is an offer and is expected to be taken seriously. The courts might say it is an offer
• In a unilateral contract, the offeror makes a promise to exchange for an axt by another party

  EG reward offered for someone finding and returning a missing pet
• In a bilateral contract, there is an exchange of mutual promises

  EG contract to buy a loaf of bread for £1. Provide bread one party and the other to pay £1
• Bilateral contract - requires both offeror and offeree go do something. Both parties have obligations.
• Unilateral contract- an agreement to pay in exchange for performance, if the potential performer chooses to act. No obligation to perform the act
• Unilateral contract - (Carlill v Varbolic Smoke Ball)
• Goods in a shop window or on a shop shelf (Fisher v Bell)

  Goods on the shelf on in the customer's basket are an invitation to treat. Becomes an offer when customer presents them to checkout operator. Shop accepts or declines customer's offer through checkout
• Lots at an auction

  At an auction, the bidder makes the offer that the auctioner then accepts by banging his hammer. Lots available at an auction are an invitation to treat.

  (British car auctions v Wright)
• Request for information

  A request for information and a reply to such a request is not an offer. This could be a general enquiry like when an item is on display for sake and doesn't have a price on it.

  (Harvey v Facey)
• Who can make an offer?

  An offer can be made by anyone and it can be by an individual, a partnership, limited company or other organisation

  An offer made other than by an individual is made by an employee of the business of agent. Notice or machine

  (Thornton v Shoe lane)
• To whom can an offer be made?

  • A named individual, (Gibson v Manchester City council)
  • A group of people
  • The world at large, (Carlill v Carbolic smokeball)
• Communicating the offer

  An offer comes into existence when it is communicated to the offeree. Communication requires the offeree to know of the existence of the offer

  (Taylor v Laird)

  Exact timing can be crucial - (Stevenson v McLean)
• How an offer can end?

  • Revocation
  • Rejection
  • Lapse of time
  • Death
  • Acceptance
• Revocation

  An offer can be revoked (withdrawn) at any time before acceptance. The offeror must communicate the revocation to the offeree before the revocation can take effect.

  (Routledge v Grant)

  (Dickinson v Dodds)
• When there is an offer to the whole world. Offer can end in three ways:

  • Set a time limit in the offer, such as by stating the 'reward' will only be available to be paid until a particular date
  • The expiry of a reasonable time
  • Publish revocation of the offer in the same way as the original offer was made
• Rejection

  • Once an offer is rejected, this ends the offer
  • If the offer is made to more than one person, rejection by one person does not mean the other offerees can no longer accept the offer
  • The rejection must be communicated to the offeror before it takes effect as in revocation
• An offer can be rejected in two ways:

  1. Specifically responding to the offer by saying 'No'
  2. Making a counter offer: this could be, for example, a different price or delivery date. An example of rejection through counter offer occurs in (Hyde v Wrench)
• Counter offer - a response to an offer that makes a firm proposal that materially alters the terms of the offer

  Rejection through counter offer - (Hyde v Wrench)
• Lapse of time

  An offer can end by lapse of time. If a fixed period for the duration od the offer is stated, then as soon as that expires, there is no offer to accept

  The problem arises when no time is set. In this situation, the time is a reasonable time, which will obviously vary, depending on the nature of the offer

  (Ramsgate Victoria Hotel v Montefiore)
• Death

  The effect of the death of either the offeror or the offeree depends on which party died and the type of contract involved

  If the offeree dies, then the offer ends, and those dealing with his estate cannot accept on his behalf. The executors or administrators of his estate can make a new offer, as can the offeror
• Death

  When an offer dies, acceptance can still take place until the offeree learns of the offeror's death
• Acceptance

  • Acceptance must be positive and unqualified
  • If must be Acceptance of the whole offer and all the terms in it
  • There is no Acceptance if the response to the offer yes if, yes buy
  • This would be a counter offer unless it is just a request for information