OFFER
AN OFFER is a proposition from one party to another, or a group of people
or entire world. The person making the offer is known as the offeror and
party who offer is made to is the offeree. An offer should be definite in its
terms meaning if legally binding agreement is being made it should be
clear what’s included in the agreement.
AN INVITATION TO TREAT- is simply an invitation to make offers and
usually occurs at early stages of the negotiation. In Fisher v Bell it was
held that items in a shop shelf or on display in window are invitations to
treat. This was also seen in Pharmaceutical Society of GB V Boots
Cash Chemists. Advertisements are also invitations to treat as seen in
Partridge v Critten. However, there are some exceptions where
advertisements can be an offer as seen in Carlill v Carbolic where court
held there was a unilateral offer and promise to pay reward can be an
offer if wording shows intention to be bound. the lots available at an
auction are an invitation to treat as seen in the case of British Car
Auctions v Wright. A request for information and a reply to such a
request is not an offer as seen in Harvey v Facey.
A unliteral offer is where only one person is bound by offer.
A bilateral offer is where both parties are bound by offer.
WHO MAKES OFFER - An offer can be made by a machine as seen in
Thorton v shoe lane Parking. a reply to a request for information is not
an offer.
COMMUNCATION OF OFFER - Communication requires the offeree to know
of the existence of the offer, as in the case of Taylor v Laird
AN OFFER CAN END IN MANY WAYS.
One way it may end is through ACCEPTANCE.
It may also end through REVOCATION by the seller which must be
communicated to the offerree. In Dickson v Doods it was held this
may be communicated by a third party. it cannot be revoked if
acceptance is on-going as seen in Errington v Errington. It can
also be revoked any time before acceptance as seen in Bryne v
Van Tinhoven. In Routledge v Grant it was held it must be
specified how long offer is open and during that time it can still be
withdrawn.
It may also end through a COUNTEROFFER as original offer ends
and counteroffer becomes new offer which was seen in Hyde v
Wrench.
, It may also end through LAPSE OF TIME which may be a specific
period specified by offeror. In Ramsgate v Victoria Hotel, it was
held that original offer ended because of lapse of time as
circumstances had changed.
Lastly it may end due to DEATH. If the offeree dies, then offer end. If
the offeror dies it doesn’t always end as people who inherit the
offerors values may still sell it for price offered.
ACCEPTANCE
The offer must validly accepted by offeree and acceptance communicated
back to the offeror. It must be an unconditional agreement to all terms.
This changes offer into agreement or contract. Acceptance must mirror
the offer and be certain as seen in Hyde v Wrench. It must also not
change term of contract and must be communicated back to offeror
properly.
HOW TO ACCEPT – it must be communicated to offeror effectively, so they
know it has been accepted. Silence alone does not amount to acceptance
as seen in Felthouse v Bindley. It can be in any form including in words,
writing or positive conduct. If the oferror asks for acceptance in a
particular way then acceptance must usually be used by that method.
However, courts may waive requirement if method of acceptance was
equally effective and didn’t disadvantage offeror as seen in Yates v
Puelleyen. Auto generation by a computer on emails can be the same as
a signature as seen in Neocleous v Rees. In Wells v Devanni court
implied terms that gave business efficacy to the contract in the absence
of written terms.
WHEN DOES OFFER TAKE PLACE? – There are 3 ways of accepting an offer
Acceptance by conduct -On RI LLC v Anotech International it was
held Acceptance by conduct, because the prescribed mode of
acceptance had been waived by the original offeror.
The postal rule- is where acceptance is communicated via post. it does
not apply to offers and counter offers. The rule only applies if use of
post is reasonable, letter properly addressed and stamped, and offeree
can prove it was posted. In Adams v Lindsell it was held that contract
began on day acceptance was returned via post. Postal rule may be
, avoided if offer states there’s no contract unless the acceptance is
received as seen in Holwell v Hughes.
Electronic methods- for modern communication acceptance is only
valid if; person intends to agree and any required formal steps are
completed. In Entores v Miles Far East it was held that in the case of
instant communication acceptance must be successfully received.
Brinkibon Ltd v Stahag v Stahl it was held If message is sent
outside office hours acceptance is only effective when received by
offeror. In Thomas v BPE Solicitors it was held acceptance is
deemed received at time reasonable for offeror to check their inbox.
The Consumer Protection (distance selling) Regulations 2000
and Consumer Rights Act 2015 states if key info to consumer is
omitted there’s no contract which applies to phone, fax, internet
shopping etc. Article 11 of the Electronic Commerce (EC
Directive) Regulations 2002 states that where a buyer needs to give
consent through technological means contract formed when buyer
receives confirmation of acceptance.
INTENT TO CREATE LEGAL
RELATIONS
There is a basic requirement that both parties to a contract must intend to
form a legally binding agreement and have intention of creating legal
relations. Theres no contract when the presumption is rebutted (evidence
is shown that the there was no presumption), as seen in Jones v
Vernon’s Pools.
DOMESTIC AGREEMENTS this may be between family and friends and
there is a presumption in contract law that it is not legally binding. In
Balfour v Balfour it was held as it was a social and domestic agreement
there was a presumption against intent to be legally bound. However, In
Merrit v Merrit it was held where parties are separated there is
AN OFFER is a proposition from one party to another, or a group of people
or entire world. The person making the offer is known as the offeror and
party who offer is made to is the offeree. An offer should be definite in its
terms meaning if legally binding agreement is being made it should be
clear what’s included in the agreement.
AN INVITATION TO TREAT- is simply an invitation to make offers and
usually occurs at early stages of the negotiation. In Fisher v Bell it was
held that items in a shop shelf or on display in window are invitations to
treat. This was also seen in Pharmaceutical Society of GB V Boots
Cash Chemists. Advertisements are also invitations to treat as seen in
Partridge v Critten. However, there are some exceptions where
advertisements can be an offer as seen in Carlill v Carbolic where court
held there was a unilateral offer and promise to pay reward can be an
offer if wording shows intention to be bound. the lots available at an
auction are an invitation to treat as seen in the case of British Car
Auctions v Wright. A request for information and a reply to such a
request is not an offer as seen in Harvey v Facey.
A unliteral offer is where only one person is bound by offer.
A bilateral offer is where both parties are bound by offer.
WHO MAKES OFFER - An offer can be made by a machine as seen in
Thorton v shoe lane Parking. a reply to a request for information is not
an offer.
COMMUNCATION OF OFFER - Communication requires the offeree to know
of the existence of the offer, as in the case of Taylor v Laird
AN OFFER CAN END IN MANY WAYS.
One way it may end is through ACCEPTANCE.
It may also end through REVOCATION by the seller which must be
communicated to the offerree. In Dickson v Doods it was held this
may be communicated by a third party. it cannot be revoked if
acceptance is on-going as seen in Errington v Errington. It can
also be revoked any time before acceptance as seen in Bryne v
Van Tinhoven. In Routledge v Grant it was held it must be
specified how long offer is open and during that time it can still be
withdrawn.
It may also end through a COUNTEROFFER as original offer ends
and counteroffer becomes new offer which was seen in Hyde v
Wrench.
, It may also end through LAPSE OF TIME which may be a specific
period specified by offeror. In Ramsgate v Victoria Hotel, it was
held that original offer ended because of lapse of time as
circumstances had changed.
Lastly it may end due to DEATH. If the offeree dies, then offer end. If
the offeror dies it doesn’t always end as people who inherit the
offerors values may still sell it for price offered.
ACCEPTANCE
The offer must validly accepted by offeree and acceptance communicated
back to the offeror. It must be an unconditional agreement to all terms.
This changes offer into agreement or contract. Acceptance must mirror
the offer and be certain as seen in Hyde v Wrench. It must also not
change term of contract and must be communicated back to offeror
properly.
HOW TO ACCEPT – it must be communicated to offeror effectively, so they
know it has been accepted. Silence alone does not amount to acceptance
as seen in Felthouse v Bindley. It can be in any form including in words,
writing or positive conduct. If the oferror asks for acceptance in a
particular way then acceptance must usually be used by that method.
However, courts may waive requirement if method of acceptance was
equally effective and didn’t disadvantage offeror as seen in Yates v
Puelleyen. Auto generation by a computer on emails can be the same as
a signature as seen in Neocleous v Rees. In Wells v Devanni court
implied terms that gave business efficacy to the contract in the absence
of written terms.
WHEN DOES OFFER TAKE PLACE? – There are 3 ways of accepting an offer
Acceptance by conduct -On RI LLC v Anotech International it was
held Acceptance by conduct, because the prescribed mode of
acceptance had been waived by the original offeror.
The postal rule- is where acceptance is communicated via post. it does
not apply to offers and counter offers. The rule only applies if use of
post is reasonable, letter properly addressed and stamped, and offeree
can prove it was posted. In Adams v Lindsell it was held that contract
began on day acceptance was returned via post. Postal rule may be
, avoided if offer states there’s no contract unless the acceptance is
received as seen in Holwell v Hughes.
Electronic methods- for modern communication acceptance is only
valid if; person intends to agree and any required formal steps are
completed. In Entores v Miles Far East it was held that in the case of
instant communication acceptance must be successfully received.
Brinkibon Ltd v Stahag v Stahl it was held If message is sent
outside office hours acceptance is only effective when received by
offeror. In Thomas v BPE Solicitors it was held acceptance is
deemed received at time reasonable for offeror to check their inbox.
The Consumer Protection (distance selling) Regulations 2000
and Consumer Rights Act 2015 states if key info to consumer is
omitted there’s no contract which applies to phone, fax, internet
shopping etc. Article 11 of the Electronic Commerce (EC
Directive) Regulations 2002 states that where a buyer needs to give
consent through technological means contract formed when buyer
receives confirmation of acceptance.
INTENT TO CREATE LEGAL
RELATIONS
There is a basic requirement that both parties to a contract must intend to
form a legally binding agreement and have intention of creating legal
relations. Theres no contract when the presumption is rebutted (evidence
is shown that the there was no presumption), as seen in Jones v
Vernon’s Pools.
DOMESTIC AGREEMENTS this may be between family and friends and
there is a presumption in contract law that it is not legally binding. In
Balfour v Balfour it was held as it was a social and domestic agreement
there was a presumption against intent to be legally bound. However, In
Merrit v Merrit it was held where parties are separated there is
