Contract Law
Offer and acceptance
When is there an agreement? Freedom to contract, certainty (Arnold V Britton 2015- traditional
approach to interpret the words used, Modern approach allows for some judicial intervention),
objectivity (RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH& Co. - a contract for a packaging
machine was made however when the dispute arose that the equipment used was not in the
contract the payment stopped and only 70% of payment was made overall)
Traditional approach- Clarke V Earl of Dunraven and Mount-Earl, The satanita 1897 (yacht club race
was agreed with the individual entrance and the club; two entrances had a company together and
one of the boats sank), Trentham Ltd v Archital Luxfor Ltd 1993 where it was held that the work
done to provide aluminium windows and doors was ineffective and the binding subcontracts had
been concluded for the window works’. Preferable Approach in Tekdata interconnections Ltd v
Amphenol 2009- T bought parts from A who both had terms and conditions, T accused A of sending
a faulty order however A had already stated in their terms and conditions that they would never be
liable for mistakes which was accepted by T on receiving these terms.
Offer- An offer is a proposition put by one party made with the intention to be bound by its terms as
soon as it is accepted by the party to whom it is addressed.
Identifying an offer- intention to be bound, if not it may be viewed as an invitation to treat. The
theoretical distinction (Gibson v Manchester city council 1979- tenant received letter indicating that
someone MAY want to buy the council house to which the council objected , Storer V Manchester
city council 1974)
E.G Partridge V Crittenden 1968 (Advertisement is not an offer but an invitation to treat, the person
responding to the advert makes it an offer), Pharmaceutical Society of Great Britain V Boots Cash
Chemists 1953 and Fisher V Bell 1961 (Shop displays, the customer makes the offer to buy the item
at the checkout), Payne V Cave 1789, Barry V Davies 2000 (Auction, the bidder makes the offer,
there is a duty to consider all offers), Blackpool V Fylde Aero Club Ltd v Blackpool Borough council
1990 (tenders), Thornton V shoe lance parking 1971 (Vending machines the offer is made when the
proprietor of the machine holds It out as being ready to receive money, acceptance takes place
when the customer inserts the money- Lord Denning)
Ending the offer before acceptance- express rejection, counter offer (once accepted they can’t go
back and accept the original offer) - Hyde v wrench 1840 and Stevenson v McLean 1880 who wanted
to pay in instalments was concluded not to be a counter offer or an acceptance.
Revocation/withdrawal: Routledge v Grant 1828 where the defendant offered to take a lease of the
claimant’s premises, giving the claimant six weeks to decide. Three weeks later the defendant
withdrew the offer: without consideration to support the promise, even if an offer is stated as being
open for a week it may be withdrawn before the week it up. Byrne v Van Tienhoven 1880: the
offeree must be receiving notice of the intention to withdraw, whether it be the same
communication form of the offer or not. Dickinson V Dodds 1876 where the defendant made an
Offer and acceptance
When is there an agreement? Freedom to contract, certainty (Arnold V Britton 2015- traditional
approach to interpret the words used, Modern approach allows for some judicial intervention),
objectivity (RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH& Co. - a contract for a packaging
machine was made however when the dispute arose that the equipment used was not in the
contract the payment stopped and only 70% of payment was made overall)
Traditional approach- Clarke V Earl of Dunraven and Mount-Earl, The satanita 1897 (yacht club race
was agreed with the individual entrance and the club; two entrances had a company together and
one of the boats sank), Trentham Ltd v Archital Luxfor Ltd 1993 where it was held that the work
done to provide aluminium windows and doors was ineffective and the binding subcontracts had
been concluded for the window works’. Preferable Approach in Tekdata interconnections Ltd v
Amphenol 2009- T bought parts from A who both had terms and conditions, T accused A of sending
a faulty order however A had already stated in their terms and conditions that they would never be
liable for mistakes which was accepted by T on receiving these terms.
Offer- An offer is a proposition put by one party made with the intention to be bound by its terms as
soon as it is accepted by the party to whom it is addressed.
Identifying an offer- intention to be bound, if not it may be viewed as an invitation to treat. The
theoretical distinction (Gibson v Manchester city council 1979- tenant received letter indicating that
someone MAY want to buy the council house to which the council objected , Storer V Manchester
city council 1974)
E.G Partridge V Crittenden 1968 (Advertisement is not an offer but an invitation to treat, the person
responding to the advert makes it an offer), Pharmaceutical Society of Great Britain V Boots Cash
Chemists 1953 and Fisher V Bell 1961 (Shop displays, the customer makes the offer to buy the item
at the checkout), Payne V Cave 1789, Barry V Davies 2000 (Auction, the bidder makes the offer,
there is a duty to consider all offers), Blackpool V Fylde Aero Club Ltd v Blackpool Borough council
1990 (tenders), Thornton V shoe lance parking 1971 (Vending machines the offer is made when the
proprietor of the machine holds It out as being ready to receive money, acceptance takes place
when the customer inserts the money- Lord Denning)
Ending the offer before acceptance- express rejection, counter offer (once accepted they can’t go
back and accept the original offer) - Hyde v wrench 1840 and Stevenson v McLean 1880 who wanted
to pay in instalments was concluded not to be a counter offer or an acceptance.
Revocation/withdrawal: Routledge v Grant 1828 where the defendant offered to take a lease of the
claimant’s premises, giving the claimant six weeks to decide. Three weeks later the defendant
withdrew the offer: without consideration to support the promise, even if an offer is stated as being
open for a week it may be withdrawn before the week it up. Byrne v Van Tienhoven 1880: the
offeree must be receiving notice of the intention to withdraw, whether it be the same
communication form of the offer or not. Dickinson V Dodds 1876 where the defendant made an
