2. Agreement
2.1 the objective test of agreement
Court’s approach
objective approach
attaches significance to external appearances
The Hannah Blumenthal (1983)
looks at external factors and describes how the reasonable person
would have understood what was said and done
subjective point of view
aims to discover what the parts actually intended and understood
Rationale for the courts’ approach
at the time of the alleged contract, the parties themselves cannot know the
others true intentions
objective approach
enhances certainty and encourages reliance
intentions of parties are sidelined, damaging claim that contracts are
based on parties’ consent
2.2 Identifying an offer and acceptance
Dual requirements
contractual obligations arise out of voluntary agreements
2.3 Offer
one party must intend to make an offer capable of being accepted by
another
offer + acceptance = agreement
invitation + offer + acceptance = agreement
2. Agreement 1
, Gibson v Manchester CC (1979)
Using presumptions clarify intention
advertisements
Partridge v Crittenden (1968)
displays
Pharmaceutical Society of GB v Boots Cash Chemists (1953)
Fisher v Bell (1961)
invitation to treat - shop with limited stock unable to supply everybody
special circumstances = offer
clear intention to be bond by all acceptances or evidence there
would be no problem supplying all entitled to accept offer
auctions
3 parties involved: seller, auctioneer and bidding public
same rules as display of goods
British Car Auctions v Wright (1972)
with and without reserve
‘with’ - min. price that must be met before goods can be sold
‘without’ - item knocked down to highest price
seller able to withdraw item from auction if offer from highest bidder
has not yet been accepted by auctioneer
(as agent for seller)
Warlow v Harrison (1859)
tenders
seller who has a number of potential purchasers may invite them to
submit a tender
referential bids - (£100 more than the highest bidder) vs fixed bids
2.4 Rejection, counter-offers and inquiries
rejection - original offer is rejected and no longer exists
2. Agreement 2
2.1 the objective test of agreement
Court’s approach
objective approach
attaches significance to external appearances
The Hannah Blumenthal (1983)
looks at external factors and describes how the reasonable person
would have understood what was said and done
subjective point of view
aims to discover what the parts actually intended and understood
Rationale for the courts’ approach
at the time of the alleged contract, the parties themselves cannot know the
others true intentions
objective approach
enhances certainty and encourages reliance
intentions of parties are sidelined, damaging claim that contracts are
based on parties’ consent
2.2 Identifying an offer and acceptance
Dual requirements
contractual obligations arise out of voluntary agreements
2.3 Offer
one party must intend to make an offer capable of being accepted by
another
offer + acceptance = agreement
invitation + offer + acceptance = agreement
2. Agreement 1
, Gibson v Manchester CC (1979)
Using presumptions clarify intention
advertisements
Partridge v Crittenden (1968)
displays
Pharmaceutical Society of GB v Boots Cash Chemists (1953)
Fisher v Bell (1961)
invitation to treat - shop with limited stock unable to supply everybody
special circumstances = offer
clear intention to be bond by all acceptances or evidence there
would be no problem supplying all entitled to accept offer
auctions
3 parties involved: seller, auctioneer and bidding public
same rules as display of goods
British Car Auctions v Wright (1972)
with and without reserve
‘with’ - min. price that must be met before goods can be sold
‘without’ - item knocked down to highest price
seller able to withdraw item from auction if offer from highest bidder
has not yet been accepted by auctioneer
(as agent for seller)
Warlow v Harrison (1859)
tenders
seller who has a number of potential purchasers may invite them to
submit a tender
referential bids - (£100 more than the highest bidder) vs fixed bids
2.4 Rejection, counter-offers and inquiries
rejection - original offer is rejected and no longer exists
2. Agreement 2
