2. Offer

• What is an offer?

  A proposition put by one person (offeror) to another (offerree).

  Can be made orally, or writing, or conduct. Needs to be clear, precise and capable of acceptance as it stands.
• Harvey v Facey

  Buyer asks seller if he can sell him bumper hall penn. Seller replies, lowest price is 900 pounds. Court held this was a mere statement of price and not an offer open to acceptance.
• What is an invitation to treat?

  A proposition which indicates a willingness to enter into negotiations.

  1. advertisements (partridge v crittenden)
  2. Display of goods for sale (fisher v bell)
  3. A mere statement of price (harvey v facey)
  4. Auction sales (British car auctions v wright)
• Partridge v crittenden (advertisements)

  A defendant advertized "brablefinch cocks and hens 25s each" Court held that advertisement was only an invitation to treat and not an offer. The advertisement was only the tarting point of negotiations.
• Fisher v bell (display of goods for sale)

  Shopkeeper placed a flick knife in shop window. Now guilty for offering it for sale as the display was only an invitation to treat.
• Clifton v palumbo (a mere statement of price)

  The letter is not an offer to sell but a mere indication of the price of the estate.
• British car auctions v wright (auction sales)

  Offering to sell an unsafe car failed as there was no offer to sell, only an invitation to bid.
• Tailor v laird (communication of acceptance)

  An offer of resignation from the captain was communicated to the employees. but the fact that he will help the ship back had never been communicated. They were entitled to refuse payment.

  Whoever knows about the reward and acts upon it will be liable to the money. Not someone that doesnt know.
• What are the 6 ways of terminating an offer?

  1. Revocation
  2. Acceptance of the offer
  3. Rejection of a counter offer
  4. Lapse of time
  5. Death of one of the parties
  6. Failiure of a condition precedent
• What is revocation?

  3 key principles:

  1. must be communicated to the offeree.
  2. Communication can be made by a reliable third party.
  3. Unilateral offer cannot be withdrawn while the offeree is performing.

  Case: Routledge v Grant (grant made offer to sell house, open for 6 weeks. He took out the market before acceptance. He was entitled to do so as there had been no acceptance so far.)

  Revocation must be communicated.
• DIckinson v Dodd (revocation by third party)

  It was a reliable mutual friend. Court held that revocation was valid.
• Errington v Errington & woods

  The power to revoke was lost because offerees had embarked on their fulfilment of the condition by having started to pay the mortgage installment.
• Ramsegate victoria hotel co. ltd v Montefiore (Lapse of time)

  Montefire offered to buy shares in June but company only issued in November. Court said that offer had lapsed and cant stay open indefinitely, where the value of goods/services could change rapidly.