Elements of a contract
• Both offer and acceptance of contract must be certain and complete
• Consideration
o A kind of promise
o E.g. promise to pay for the car and the promise to hand over the car
• Intent to create legal relations
o Legally bound
What is an offer
• "the expression to another of a willingness to be legally bound by stated terms"
(Australian Woollen Mills Pty Ltd v Commonwealth (1954) 92 CLR 424)
o Clear statement (willingness to be bound by specific terms upon acceptance),
intention (demonstrate intent to create legal relations), communication
(must be comms to offeree)
• Not always clear when offer is made
o Consider a global approach
o Would dealings show a concluded bargain reached if looked at holistically
from a sane person's view
o There may be an offer and acceptance between parties even if can't be pin-
pointed
• Once accepted, neither party can withdraw w/o potential liability
• Valid acceptance = agreement w/ terms and communication to the
offeror
• Don't need to be made in writing unless set out in legislations
o E.g. offer for land, or transfer of property
• Can be made to individuals and word at large
o E.g. unilateral contract
Who're involved
• Offeror (made the offer)
• Offeree (to whom offer is made to)
o Usually if confusing, sketch out which party said what and responses to see
who made the offer
• Individuals = a person or corporation
o Both have the same legal rights and terms
Bilateral Contract
• E.g. buying smth at the shops
• Agreement between two parties
• "Each party undertakes to the other party to do or to refrain from doing smth, and in
the event of his failure to perform his undertaking, the law provides the other party
with a remedy"
o Union Dominions Trust (Commercial) Ltd v Eagle Aircraft Services Ltd
, Unilateral Contract
• Made to a non-identifiable individual
o E.g. world at large or group of persons
• Offers made over internet are governed by traditional rules w/ respect to offer and
acceptance
• "The promisor undertakes to do or to refrain from doing smth on his part if the
promisee does or refrains from doing smth, but the promisee does not himself
undertake to do or to refrain from doing that thing"
o Union Dominions Trust (Commercial) Ltd v Eagle Aircraft Services Ltd
What is NOT an offer
• Mere puff
o Advertising slogans (best you're gonna have)
• Exaggerated and unsustainable claims
o Words are not promising
o Non-promissory statement made
• Invitation to treat
o Indication of willingness to negotiate entry into a contract
• An offer to receive offers
o E.g. shopped goods on display
• Being displayed isn't an offer. Someone picking it up and asking to buy
it is an offer
• Request for supply of info
o Exchange of info
Categorising transactions
Advertisements
• Usually invitation to treat
o Retailer doesn't need to comply with statutory requirements in the ad (so no
regulation on what they're selling) if it's not an offer
o If they exhaust stock of advertised items, they would be in breach of a
contract if it was an offer
• Some situations where they can be offers
• Internet advertisements as well: s 26 B Electronic Transactions (Queensland) Act
2001
o Follows physical ad rules UNLESS site makes it clear that customer taking
prescribed steps results in confirmation of order, the product WILL be
supplied (whether in stock or not) = an offer made and accepted
Auction
• Advertisement for auction = not binding the auctioneer to carry out auction
• With a reserve = each bid is an offer
o Offer will only bee accepted once auctioneer knocks the property down, if
not the offer isn't accepted and prior to that, the offeror can withdraw
• Without a reserve = less settled
o Contract made between auctioneer and highest bona fide bidder
• Both offer and acceptance of contract must be certain and complete
• Consideration
o A kind of promise
o E.g. promise to pay for the car and the promise to hand over the car
• Intent to create legal relations
o Legally bound
What is an offer
• "the expression to another of a willingness to be legally bound by stated terms"
(Australian Woollen Mills Pty Ltd v Commonwealth (1954) 92 CLR 424)
o Clear statement (willingness to be bound by specific terms upon acceptance),
intention (demonstrate intent to create legal relations), communication
(must be comms to offeree)
• Not always clear when offer is made
o Consider a global approach
o Would dealings show a concluded bargain reached if looked at holistically
from a sane person's view
o There may be an offer and acceptance between parties even if can't be pin-
pointed
• Once accepted, neither party can withdraw w/o potential liability
• Valid acceptance = agreement w/ terms and communication to the
offeror
• Don't need to be made in writing unless set out in legislations
o E.g. offer for land, or transfer of property
• Can be made to individuals and word at large
o E.g. unilateral contract
Who're involved
• Offeror (made the offer)
• Offeree (to whom offer is made to)
o Usually if confusing, sketch out which party said what and responses to see
who made the offer
• Individuals = a person or corporation
o Both have the same legal rights and terms
Bilateral Contract
• E.g. buying smth at the shops
• Agreement between two parties
• "Each party undertakes to the other party to do or to refrain from doing smth, and in
the event of his failure to perform his undertaking, the law provides the other party
with a remedy"
o Union Dominions Trust (Commercial) Ltd v Eagle Aircraft Services Ltd
, Unilateral Contract
• Made to a non-identifiable individual
o E.g. world at large or group of persons
• Offers made over internet are governed by traditional rules w/ respect to offer and
acceptance
• "The promisor undertakes to do or to refrain from doing smth on his part if the
promisee does or refrains from doing smth, but the promisee does not himself
undertake to do or to refrain from doing that thing"
o Union Dominions Trust (Commercial) Ltd v Eagle Aircraft Services Ltd
What is NOT an offer
• Mere puff
o Advertising slogans (best you're gonna have)
• Exaggerated and unsustainable claims
o Words are not promising
o Non-promissory statement made
• Invitation to treat
o Indication of willingness to negotiate entry into a contract
• An offer to receive offers
o E.g. shopped goods on display
• Being displayed isn't an offer. Someone picking it up and asking to buy
it is an offer
• Request for supply of info
o Exchange of info
Categorising transactions
Advertisements
• Usually invitation to treat
o Retailer doesn't need to comply with statutory requirements in the ad (so no
regulation on what they're selling) if it's not an offer
o If they exhaust stock of advertised items, they would be in breach of a
contract if it was an offer
• Some situations where they can be offers
• Internet advertisements as well: s 26 B Electronic Transactions (Queensland) Act
2001
o Follows physical ad rules UNLESS site makes it clear that customer taking
prescribed steps results in confirmation of order, the product WILL be
supplied (whether in stock or not) = an offer made and accepted
Auction
• Advertisement for auction = not binding the auctioneer to carry out auction
• With a reserve = each bid is an offer
o Offer will only bee accepted once auctioneer knocks the property down, if
not the offer isn't accepted and prior to that, the offeror can withdraw
• Without a reserve = less settled
o Contract made between auctioneer and highest bona fide bidder
