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Paper 3: The Nature of Law and The Law of Contract
Formation
Offer
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Cards (9)
Unilateral contract - Only
one
of the
two
parties has an obligation to fulfil
Bilateral contract -
Both
parties have an obligation to fulfil
Offer: Statement of
terms
upon which the person making the offer is willing to
enter
the contract
Can be verbal or
written
1. Words of the offer must be
certain
It must be
clear
an offer is being made - words such as
'might
be' or
'may
be able to' are
uncertain
and therefore cannot be an offer (
Gibson
v
MCC
)
2.
Who
can make an offer
An offer can be made by
anyone
- this includes individuals and
businesses
Offers can be made by
notice
or at a machine -
Thornton
v
Shoe Lane
Parking
3. How
long
an offer lasts
Offers can only be accepted when they are
open
- some contracts specify the
amount of time
the offer will be open for
The offer is open once it is
communicated
by the offeror -
Taylor
v
Laird
The courts will look at timing on a
case-by-case
basis if the offer is still open -
Stevenson
v McLean
4. Invitation to
Treat
ITT is an indication that the person is willing to
negotiate
a contract, so you are
inviting
people to make you the
offer
- these cannot be
accepted
Adverts are an ITT -
Partridge
v
Crittenden
Adverts can be an offer in a
unilateral
contract (these are usually a
reward
for doing something) -
Carlill
v
Carbolic
Smokeball Co
Items on display in a shop
window
or on a shop
shelf
are an ITT, sellers are not obligated to sell items to customers
- Fish
er v
Bell
Auctions are an ITT -
BCA
v
Wright
Request for further
information
This is not an offer as it is an
enquiry
-
Harvey
v
Facey
How an offer can end
Revocation: You can
revoke
an offer at any time unless it has been
accepted
, this must occur before
acceptance
-
Routledge
v
Grant
Rejection: If an offer is rejected, it will
end
-
Stevenson
v
McClean
Lapse of
time
: If the offer has a time limit, then the offer will end at the end of this
period
- Ramsgate
Victoria Hotel
Death: Death of the
offeror
will only end the offer if the offeree
knows
the person making the offer has died
Acceptance: If the offer has been
accepted
, there is an agreement