Question:
Kate places an advertisement notice in her local shop window, ‘six classic casserole
pots for sale: each £100. Available only to the first six people who pay me this
amount by Saturday 1st January’.
Kate’s sister, Bianca, read the advertisement and wishes to buy a pot; she collects
one on Tuesday morning, 28th December, and promises to pay for it the next day.
Kate agrees.
Philip wishes to gift one pot for his wife who loves to cook. He sends Kate £100 in
the post on Wednesday, 29th December, and says that he will collect the pot on
Monday, 3rd January. The letter gets lost in the post.
In the morning of Thursday, 30th December, Charles telephones Kate and asks if he
can buy two pots for £150. Kate says she needs time to think about this and Charles
tells her to let him know by Saturday, 1st January, at 10am. On the same evening,
Kate calls Charles and leaves a message on his answering machine saying, ‘I agree,
you can have two pots for £150.’ Charles does not hear the message until Saturday
morning, 11am.
Due to poor response to the advertisement, Kate is upset and decides not sell the
remaining three pots anymore. She places an advertisement at her shop window
again stating that the pots are no longer for sale as they are going to be auctioned
st
on Friday 31 December.
Charles attends the auction and is delighted to see the pots for sale. He makes a
successful bid and buys all three for £150. He sees William, Kate’s partner, at the
auction and says “I’m so lucky! What a bargain I’ve got! I’m glad that Kate didn’t
respond to my telephone call”. William calls Kate immediately. She is furious as she
was keeping two pots for Charles at her shop. In anger she takes the remaining two
pots to a charity shop on Friday evening.
On 1st January morning, Bernard, Kate’s neighbour, met her with £100 and is very
annoyed to see the advertisement on the auction as he planned to give a pot to his
mother as a present.
Philip arrives on Monday, 3rd January to collect his pot. Kate is also upset with
Bianca because she hasn’t paid for the pot she had collected.
Advise Kate.
1
, Intro
The issues arise as to whether there is an enforceable contract between Kate and one of the
parties, who are Bianca, Philip, Charles and Bernard and the possibility of bringing the claims
of breach of contract against them. As per Lord Wilberforce in The Eurymedon1, the elements
of offer and acceptance, intention to create legal relation and consideration must take place
in creation of a valid contract. Accordingly, offer and acceptance are the components of
forming a valid contract2. Therefore, the advertisement from Kate has to be established in the
first place whether it is an invitation to treat or an offer.
Advertisement – Offer or Invitation to Treat
An offer is made by the offeror to the offeree with the specified terms and intention to be
legally bound by the contract so long as it is accepted by the offeree3. Offer can be delivered
to specific person, a group of people or the general public. In respect of the nature of contract,
it can be distinguished into 2 kinds, which are bilateral contract and unilateral contract. A
bilateral contract is a legal contract between both parties (offeror and offeree) upon the
exchange of promises conducted by both parties in the future4, whereas a unilateral contract
involves an offeror making an offer which can only be accepted by prescribed conduct, which
the offeror makes promise in response for the performance5. Other than the parties involved
in both sorts of contract, the difference between it is about the action, which acts upon the
offer, is a form of acceptance and the contract is formed at the meantime, yet bilateral
contract functions in a way of upfront promise6. The leading judgement in respect of
1
[1975] AC 154.
2
‘Offer and Acceptance: Everything You Need to Know’ (Upcounsel) <https://www.upcounsel.com/offer-and-
acceptance> accessed 20 February 2021.
3
‘Offer And Acceptance= Agreement’ (Life of A London Law Student)
<https://lifeofalondonlawstudent.com/offer-and-acceptance-agreement/> accessed 20 February 2021.
4
William Goh, ‘What is a Bilateral Contract?’ (Lawpath) <https://lawpath.com.au/blog/what-is-a-bilateral-
contract> accessed 20 February 2021.
5
Justine Mikaloff, ‘Unilateral Contract’ (LegalMatch, 20 February 2019) <https://www.legalmatch.com/law-
library/article/unilateral-contracts.html> accessed 21 February 2021.
6
‘What's the Difference Between Bilateral and Unilateral Contracts?’ (Rocket Lawyer)
<https://www.rocketlawyer.com/article/whats-the-difference-between-bilateral-and-unilateral-contracts.rl>
accessed 21 February 2021.
2
Kate places an advertisement notice in her local shop window, ‘six classic casserole
pots for sale: each £100. Available only to the first six people who pay me this
amount by Saturday 1st January’.
Kate’s sister, Bianca, read the advertisement and wishes to buy a pot; she collects
one on Tuesday morning, 28th December, and promises to pay for it the next day.
Kate agrees.
Philip wishes to gift one pot for his wife who loves to cook. He sends Kate £100 in
the post on Wednesday, 29th December, and says that he will collect the pot on
Monday, 3rd January. The letter gets lost in the post.
In the morning of Thursday, 30th December, Charles telephones Kate and asks if he
can buy two pots for £150. Kate says she needs time to think about this and Charles
tells her to let him know by Saturday, 1st January, at 10am. On the same evening,
Kate calls Charles and leaves a message on his answering machine saying, ‘I agree,
you can have two pots for £150.’ Charles does not hear the message until Saturday
morning, 11am.
Due to poor response to the advertisement, Kate is upset and decides not sell the
remaining three pots anymore. She places an advertisement at her shop window
again stating that the pots are no longer for sale as they are going to be auctioned
st
on Friday 31 December.
Charles attends the auction and is delighted to see the pots for sale. He makes a
successful bid and buys all three for £150. He sees William, Kate’s partner, at the
auction and says “I’m so lucky! What a bargain I’ve got! I’m glad that Kate didn’t
respond to my telephone call”. William calls Kate immediately. She is furious as she
was keeping two pots for Charles at her shop. In anger she takes the remaining two
pots to a charity shop on Friday evening.
On 1st January morning, Bernard, Kate’s neighbour, met her with £100 and is very
annoyed to see the advertisement on the auction as he planned to give a pot to his
mother as a present.
Philip arrives on Monday, 3rd January to collect his pot. Kate is also upset with
Bianca because she hasn’t paid for the pot she had collected.
Advise Kate.
1
, Intro
The issues arise as to whether there is an enforceable contract between Kate and one of the
parties, who are Bianca, Philip, Charles and Bernard and the possibility of bringing the claims
of breach of contract against them. As per Lord Wilberforce in The Eurymedon1, the elements
of offer and acceptance, intention to create legal relation and consideration must take place
in creation of a valid contract. Accordingly, offer and acceptance are the components of
forming a valid contract2. Therefore, the advertisement from Kate has to be established in the
first place whether it is an invitation to treat or an offer.
Advertisement – Offer or Invitation to Treat
An offer is made by the offeror to the offeree with the specified terms and intention to be
legally bound by the contract so long as it is accepted by the offeree3. Offer can be delivered
to specific person, a group of people or the general public. In respect of the nature of contract,
it can be distinguished into 2 kinds, which are bilateral contract and unilateral contract. A
bilateral contract is a legal contract between both parties (offeror and offeree) upon the
exchange of promises conducted by both parties in the future4, whereas a unilateral contract
involves an offeror making an offer which can only be accepted by prescribed conduct, which
the offeror makes promise in response for the performance5. Other than the parties involved
in both sorts of contract, the difference between it is about the action, which acts upon the
offer, is a form of acceptance and the contract is formed at the meantime, yet bilateral
contract functions in a way of upfront promise6. The leading judgement in respect of
1
[1975] AC 154.
2
‘Offer and Acceptance: Everything You Need to Know’ (Upcounsel) <https://www.upcounsel.com/offer-and-
acceptance> accessed 20 February 2021.
3
‘Offer And Acceptance= Agreement’ (Life of A London Law Student)
<https://lifeofalondonlawstudent.com/offer-and-acceptance-agreement/> accessed 20 February 2021.
4
William Goh, ‘What is a Bilateral Contract?’ (Lawpath) <https://lawpath.com.au/blog/what-is-a-bilateral-
contract> accessed 20 February 2021.
5
Justine Mikaloff, ‘Unilateral Contract’ (LegalMatch, 20 February 2019) <https://www.legalmatch.com/law-
library/article/unilateral-contracts.html> accessed 21 February 2021.
6
‘What's the Difference Between Bilateral and Unilateral Contracts?’ (Rocket Lawyer)
<https://www.rocketlawyer.com/article/whats-the-difference-between-bilateral-and-unilateral-contracts.rl>
accessed 21 February 2021.
2
