Acceptance (Offer and Agreement)
Offer
Offer - An offer is an expression of willingness to contract on specified terms, made with the intention that is to become binding as soon as
it is accepted by the person it was intended for.
Unilateral Contract - A promise (the offer) in return for an act (acceptance). An example case is Carlill v Carbolic Smoke Ball Co.
Bilateral Contract - An exchange of promises between two parties that are binding.
Contract Formation
1. Agreement - Offer and Acceptance.
2. Intention to create legal relations.
3. Consideration - A price for a promise..
An invitation to treat
1. Fisher v Bell - A display of goods in a shop is an invitation to treat.
2. Partridge v Crittendent - a normal advertisement in a newspaper is AITT.
3. Boots v Pharmaceutical Society of GB - The offer is not complete when a customer presents the goods for payment.
Termination of an offer
1. Routledge v Grant- An offer may be terminated by the offeror at any time before the acceptance
2. Mountford v Scott - Unless something has been provided in return to keep that offer open.
3. Byrne & Co v Van Tienhoven & co - Termination only takes place when communicated to the offeree.
4. The Brimnes - Communication of withdrawal of an offer by telex is only effective when it could have been read.
, 5. Dickinson v Dodds - Communication of revocation does not have to directly come from the offeror.
6. Grant v Bragg - An offer is terminated after the deadline of response has passed.
Rejection of an offer
Hyde v Wrench - A counter offer is an automatic rejection of the original offer and does not constitute acceptance as the original offer has
been voided.
Time
Ramsgate Victoria Hotel Co v Montefiore - An offer lapses after a specified amount of time or a specified condition, if no time is expressed
then a reasonable time is applied.
Auctions - With Reserve and Without Reserve
Sale of Goods Act 1979 s57(2) and British Car Auctions v Wright
● The bid is an offer which an auctioneer may accept or reject.
● A sale by auction is complete on the fall of the auctioneer's hammer.
Auctions without a reserve price - Warlow v Harrison - An auctioneer that says they will accept the offer of the highest bidder has accepted
the offer as soon as the highest offer is made. Barry v Davies
Tenders
Spencer v Harding - If an individual is invited to tender this means the individual inviting is inviting parties to make an offer.
Harvela Investments Ltd v Royal Trust Co of Canada - General rule displaced if the statement involves making an offer.
Blackpool and Fylde Aero Club v Blackpool Borough Council - Behaviour of parties can constitute an offer even when tendering.
Acceptance
, Acceptance - The unqualified expression of assent to the terms of an offer
Communication of Acceptance
Entores Ltd v Miles Far East Corp - Acceptance must be communicated to the offeror.
Felthouse v Bindley - Silence by the offeror does not constitute Acceptance.
Re Selectmove Ltd - Silence by the offeree does constitute as Acceptance.
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandel GmbH - There is a rule but it should be what could be normally accpeted. ‘ No
universal rule can cover such cases’ by Lord Wilberforce.
Postal rule - There is more risk
Adams v Lindsell - Acceptance is accepted when it was sent by post not when it reaches the offeror.
Household Fire Carriage Accident Insurance Co. Ltd V Grant - Postal rule applies even if it has not reached the offeror.
Holwell Security v Hughes - The offeror may exclude the postal rule.
If the postal rule is a part of the offerors request then no exception is included. The postal rule only applies if it was not expressed as a way
of acceptance.
1. Only applies to Acceptances.
2. Properly stamped, addressed and posted.
3. Rules must not be excluded by the offeror.
4. Reasonable that acceptance was sent by post.
Acceptance by conduct
Brogden v Metropolitan Railway - No overall contract but conduct by both parties can form a contract.
Requests for Information
Stevenson, Jaques & Co v Mclean - A request for information does not constitute an offer.
Agency
Offer
Offer - An offer is an expression of willingness to contract on specified terms, made with the intention that is to become binding as soon as
it is accepted by the person it was intended for.
Unilateral Contract - A promise (the offer) in return for an act (acceptance). An example case is Carlill v Carbolic Smoke Ball Co.
Bilateral Contract - An exchange of promises between two parties that are binding.
Contract Formation
1. Agreement - Offer and Acceptance.
2. Intention to create legal relations.
3. Consideration - A price for a promise..
An invitation to treat
1. Fisher v Bell - A display of goods in a shop is an invitation to treat.
2. Partridge v Crittendent - a normal advertisement in a newspaper is AITT.
3. Boots v Pharmaceutical Society of GB - The offer is not complete when a customer presents the goods for payment.
Termination of an offer
1. Routledge v Grant- An offer may be terminated by the offeror at any time before the acceptance
2. Mountford v Scott - Unless something has been provided in return to keep that offer open.
3. Byrne & Co v Van Tienhoven & co - Termination only takes place when communicated to the offeree.
4. The Brimnes - Communication of withdrawal of an offer by telex is only effective when it could have been read.
, 5. Dickinson v Dodds - Communication of revocation does not have to directly come from the offeror.
6. Grant v Bragg - An offer is terminated after the deadline of response has passed.
Rejection of an offer
Hyde v Wrench - A counter offer is an automatic rejection of the original offer and does not constitute acceptance as the original offer has
been voided.
Time
Ramsgate Victoria Hotel Co v Montefiore - An offer lapses after a specified amount of time or a specified condition, if no time is expressed
then a reasonable time is applied.
Auctions - With Reserve and Without Reserve
Sale of Goods Act 1979 s57(2) and British Car Auctions v Wright
● The bid is an offer which an auctioneer may accept or reject.
● A sale by auction is complete on the fall of the auctioneer's hammer.
Auctions without a reserve price - Warlow v Harrison - An auctioneer that says they will accept the offer of the highest bidder has accepted
the offer as soon as the highest offer is made. Barry v Davies
Tenders
Spencer v Harding - If an individual is invited to tender this means the individual inviting is inviting parties to make an offer.
Harvela Investments Ltd v Royal Trust Co of Canada - General rule displaced if the statement involves making an offer.
Blackpool and Fylde Aero Club v Blackpool Borough Council - Behaviour of parties can constitute an offer even when tendering.
Acceptance
, Acceptance - The unqualified expression of assent to the terms of an offer
Communication of Acceptance
Entores Ltd v Miles Far East Corp - Acceptance must be communicated to the offeror.
Felthouse v Bindley - Silence by the offeror does not constitute Acceptance.
Re Selectmove Ltd - Silence by the offeree does constitute as Acceptance.
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandel GmbH - There is a rule but it should be what could be normally accpeted. ‘ No
universal rule can cover such cases’ by Lord Wilberforce.
Postal rule - There is more risk
Adams v Lindsell - Acceptance is accepted when it was sent by post not when it reaches the offeror.
Household Fire Carriage Accident Insurance Co. Ltd V Grant - Postal rule applies even if it has not reached the offeror.
Holwell Security v Hughes - The offeror may exclude the postal rule.
If the postal rule is a part of the offerors request then no exception is included. The postal rule only applies if it was not expressed as a way
of acceptance.
1. Only applies to Acceptances.
2. Properly stamped, addressed and posted.
3. Rules must not be excluded by the offeror.
4. Reasonable that acceptance was sent by post.
Acceptance by conduct
Brogden v Metropolitan Railway - No overall contract but conduct by both parties can form a contract.
Requests for Information
Stevenson, Jaques & Co v Mclean - A request for information does not constitute an offer.
Agency
