Offer and Acceptance
3 main elements a contract needs to be legally binding- 1.
Agreement (offer and acceptance), 2. Intention to create legal
relations & 3. Consideration
Agreement – follow the doctrine of offer and acceptance – this is
where the agreement is made.
Offer – ‘an expression of willingness to contract made with the
intention that shall become binding on the person making it as soon
as it is accepted by the person to whom it is addressed’
An expression of willingness to contract on specified terms.
Offeror -------- Offeree
The offer must be capable of being accepted – offer or invitation to
treat? (invitatio ad offerendum) Not every statement is an offer (e.g.
being interested in a car being sold)
Adverts and price list examples:
Partridge v Crittenden [1968] 1 WLR 1204 – wanted to sell a bird –
protected by government, not allowed to sell them. Definition of
‘offer’ didn’t fit with what D did.
Grainger v Gough [1868] AC 325 – English agent who supplied
catalogues to people from a wine merchant in France. Was the seller
subject to English or French taxes- where was the contract made
and what point? – catalogue was not an offer, just an invitation
Shop windows and self-service shops examples:
Fisher v bell [1961] 1 QB 394 – flick knife in window for sale which
are forbidden to offer for sale. Didn’t offer for sale with it just being
in the window – legal definition of offer means NG.
Pharmaceutical society of Great Britain v Boots cash chemists ltd –
Pharmacists at the till for drugs that can’t be bought by everyone –
is contract already concluded when the customer chooses their
goods? Not at contract as they pick it up nor is having goods in the
shelf. The offer is made when the customer brings the goods to the
till – Customer offers; shop accept = contract made.
Lasky v The economy grocery stores 65 BE 2d 305, 306) US –
Customer in supermarket got tonic water and it exploded. Any claim
under contract law? – was there a contract when he put the tonic
water down on the till – no only offer being made and no acceptance
yet.
Machines:
Thornton v Shoe Lane Parking [1971] 2 QB 163 – Customer goes to
car park, puts in money and the car is parked automatically.
Malfunction – caused damage to the car and he was injured as well
(violinist). When was the contract formed? – court held the offer was
made by the machine– binding as soon as somebody accepted it,
acceptance was the customer paying the money. (cannot take his
money back) Customer committed at the moment when the money
was put in.
3 main elements a contract needs to be legally binding- 1.
Agreement (offer and acceptance), 2. Intention to create legal
relations & 3. Consideration
Agreement – follow the doctrine of offer and acceptance – this is
where the agreement is made.
Offer – ‘an expression of willingness to contract made with the
intention that shall become binding on the person making it as soon
as it is accepted by the person to whom it is addressed’
An expression of willingness to contract on specified terms.
Offeror -------- Offeree
The offer must be capable of being accepted – offer or invitation to
treat? (invitatio ad offerendum) Not every statement is an offer (e.g.
being interested in a car being sold)
Adverts and price list examples:
Partridge v Crittenden [1968] 1 WLR 1204 – wanted to sell a bird –
protected by government, not allowed to sell them. Definition of
‘offer’ didn’t fit with what D did.
Grainger v Gough [1868] AC 325 – English agent who supplied
catalogues to people from a wine merchant in France. Was the seller
subject to English or French taxes- where was the contract made
and what point? – catalogue was not an offer, just an invitation
Shop windows and self-service shops examples:
Fisher v bell [1961] 1 QB 394 – flick knife in window for sale which
are forbidden to offer for sale. Didn’t offer for sale with it just being
in the window – legal definition of offer means NG.
Pharmaceutical society of Great Britain v Boots cash chemists ltd –
Pharmacists at the till for drugs that can’t be bought by everyone –
is contract already concluded when the customer chooses their
goods? Not at contract as they pick it up nor is having goods in the
shelf. The offer is made when the customer brings the goods to the
till – Customer offers; shop accept = contract made.
Lasky v The economy grocery stores 65 BE 2d 305, 306) US –
Customer in supermarket got tonic water and it exploded. Any claim
under contract law? – was there a contract when he put the tonic
water down on the till – no only offer being made and no acceptance
yet.
Machines:
Thornton v Shoe Lane Parking [1971] 2 QB 163 – Customer goes to
car park, puts in money and the car is parked automatically.
Malfunction – caused damage to the car and he was injured as well
(violinist). When was the contract formed? – court held the offer was
made by the machine– binding as soon as somebody accepted it,
acceptance was the customer paying the money. (cannot take his
money back) Customer committed at the moment when the money
was put in.
