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Paper 3 LAW
Offer, ITT, acceptance
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Offer
A statement of the terms upon which the person making the offer is willing to enter into a
contract
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Offeror
The person making the offer
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Offeree
The person to whom the offer is
made
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Invitation to treat (ITT)
An indication of a
willingness to start negotiations
,
not an offer
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Examples of
ITT
Advertisement
in a newspaper or magazine
Goods
in a shop window
Self
service shop
Auctions
Giving of information
Uncertain
terms
Requesting
information
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Examples of offers
Vending machines
Advertisements
containing a clear indication that it is an offer
Reward
cases
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An offer
cannot
be accepted unless the person who is seeking to accept it knows of its
existence
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Unilateral
contracts are generally treated as
offers
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Ways an offer can end
Lapse
of time
Revocation
Rejection
Counter-offer
Death
of offeror or offeree
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Acceptance
The
final
expression of
agreement
to the terms of an offer
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Acceptance must usually be
communicated
to the
person
making the offer
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Acceptance has to be
positive
and
unqualified
</b>
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Methods of acceptance
Conduct
Communication by post
Communication by electronic
/
instantaneous means
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If an offeror states that their offer must be accepted in a particular way, then only
acceptance
by that method or an equally effective one will be
binding
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Where a specified method of
acceptance
has been included for the offeree's own benefit, the offeree is
not obliged
to accept in that way
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Acceptance by post takes place when a correctly
stamped
and
addressed
letter is posted
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Acceptance by electronic/instantaneous communication takes effect when it is
received
by the offeror, not when it is
sent
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