Offer and acceptance

• Offer 


  A statement of willingness by offeree to enter a legally binding agreement
• Offeror


  The party that makes the offer
• Offeree


  The party to whom the offer is made to
• Offer must be communicated

  Taylor v Laird
• An invitation to treat is not an offer

  Carlill v Carbolic Smoke

  • Advertisement
  • Goods displayed in shops
  • Auctions
• Valid Acceptance

  1. Positive - offeree must declare their acceptance via act, words or conduct (not by omission or silence)
  2. Unconditional - must be complete and unequivocal meaning no alterations (counter offer)
  3. Communicated - must be communicated in some manner
• Acceptance by post


  Acceptance is effective and enforceable at the time of posting however:

  • The rule only applies if the post is the expected method of communication
  • The letter must be properly addressed and stamped
  • The offeree must provide proof of postage