Offer and Acceptance

Subdecks (1)

Cards (51)

  • An Agreement
    The acceptance of the terms of an offer.
  • An Offer
    A clear and firm proposal of terms to form an agreement.
  • Acceptance
    The offeree agreeing to all the terms proposed by the offeror. The terms agreed must mirror one another.

    Acceptance ends the offer, there is now an agreement.
  • Gibson v MCC [1979]

    A proposal of terms must be clear and firm to constitute an offer.
    Invitations to treat are not legally binding offers.
  • Adverts constitute Invitations to Treat (ITT)
    1. Goods in shop windows
    2. Goods on display in the shop
    3. Ads in writing
  • Fisher v Bell [1961]

    Goods in shop windows are invitations to treat.
  • PSGB v Boots [1953]

    Goods on display in the shop are invitations to treat.
  • Partridge v Crittenden [1968]

    Written adverts are invitations to treat.
  • Why is it sensible to make the buyer the offeror?
    • Limited Stock
    • Right of refusal
    • Prevents prohibited contracts
  • Carlill v Carbolic Smoke Ball [1893]

    Where an advert is so unequivocally clear the court may treat it as an offer.
  • Harvey v Facey [1893]

    An exchange of information is not an offer.
  • Limited Stock
    If a seller was the offeror and had limited stock, he'd be in breach of an agreement when he is unable to sell to multiple buyers. It's sensible that a seller is the offeree.
  • Right of Refusal
    It's fair to allow the seller to not sell a product to you. It's sensible that the seller is the offeree.
  • Prohibited Contracts
    If goods on shelf were offers a seller would have to sell alcohol and tobacco to underage people. It's sensible that the seller is the offeree.
  • What is a bilateral contract?

    A two-way obligation
    Both parties are obliged to perform their side of the contract.
  • What is a unilateral contract?

    A one-way contract, also called open offers or offers to the world
    Fulfilled by the offeree's performance
    No one forced to take on the contract
  • Where a proposal is not clear and firm it will be considered an invitation to treat.
  • Ways an offer can end:
    1. Acceptance
    2. Rejection
    3. Death
    4. Counter Offer
    5. Lapse of Time
    6. Revocation
  • Rejection
    Offer ceases to exist and cannot be accepted later.
  • Death
    Offer ends when the offeror dies.
    If the offeree is unaware of the death, the offer can still be accepted.
  • Counter offer
    When the offeree wants to change a term of the offer.
    Ends the original offer and a new offer is made.
    Original offer cannot be accepted unless both parties agree.
  • Hyde v Wrench [1840]

    Counter offers end original offers and put forward new offers.
  • Lapse of Time
    Offers that are time limited must be accepted before they expire.
    If not specified, an offer ends after a reasonable period of time.
  • Ramsgate Hotel v Montefiore [1866]

    Lapse of time ends an offer.
  • Routledge v Grant [1828]

    Offers can be revoked even if open for set time.
    Revocation must be communicated before it is accepted.
  • Dickenson v Dodds [1876]

    Communication of revocation can come from a reliable third party.
  • Ways acceptances can be made:
    • In Writing
    • Verbally
    • By conduct
  • General rule on acceptance

    There is no acceptance until it is communicated.
    Communication = valid when received by offeror.
  • Yates v Pulleyn
    The offeree is obliged to communicate in the method requested by the offeror.
    If no method is requested, any reasonable method can be used.
  • Felthouse v Bindley [1863]

    Silence or inaction is not valid communication.
    There has to be positive, consented acceptance, unless the contract is unilateral
  • Adams v Lindsell [1818]

    Acceptance by post is communicated as soon as the letter is put into the postbox.
    • Must be stamped and addressed correctly
    • Sending letters must be usual method of communication.
  • Byrne v Van Tienhoven [1880]

    Revocation by post must be communicated before acceptance made.
  • Holwell Securities v Hughes [1974]

    If offeror requires notice in writing, the letter must be received and therefore the postal rule does not apply.
  • Entores v Miles Far East Corp [1955]

    Acceptance communicated on receipt for instantaneous communication.
  • Brinkibon v Stahag Stahl [1983]

    Messages of acceptance left during business hours are effective once received.
    It does not matter if they have been read or listened to.
  • If a message is sent outside business hours, acceptance is communicated when office hours resume, unless communication is regular.
  • A contract
    A legally binding agreement
  • Offeror
    A person making an offer
  • Offeree
    A person receiving an offer
  • In most cases the buyer is treated as the offeror