Contract law
, Elements of a
binding contract
,Offers and invitations to treat
• The person who makes the offer is called the offeror and the person to whom the offer is made is calle
offeree.
• An offer has been defined as ‘an expression of willingness to contract on certain terms, made wit
intention that it shall become binding as soon as it is accepted by the person to whom it is addressed’.
• An ‘expression’ may take many different forms eg a letter, newspaper advertisement, email, text me
and even conduct, as long as it communicates the basis on which the offeror is prepared to contract.
• The ‘intention’ referred to in the definition does not necessarily mean the offeror’s actual intention
courts adopt an ‘objective’ approach to deciding whether there was agreement between the parties.
• You can only accept an offer that was addressed to you.
• Invitation to treat not binding
• Goods on display ITT
• Advertisements ITT However, if there are special circumstances that show an intention to be boun
advert may amount to an offer – an offer of a unilateral contract (Carlill V Carbolic).
• Adverts for reward (definite promises to pay the reward if the specified condition is satisfied) Offer
, Auctions + tenders
• Auctions: Auctioneer inviting bids ITT
• Bid Offer
• Auctioneer’s gavel going down acceptance
• Reserve price a minimum price below which the auctioneer will not sell the property. Potential bidde
be made aware there is a reserve price; they just will not know what it is. What they do know, though, i
if the bidding does not reach the reserve price the property will be withdrawn from the sale.
• Auctions of lots that do not have a reserve price may be advertised as being ‘without reserve’.
auctioneer doesn’t sell to anyone, breach of unilateral contract (by auctioneer, not owner of goods).
• Tenders:
- Invitation to submit tenders ITT
- Tenders offers
- But what if the company had specifically promised to accept the lowest tender, or at least imp
promised to consider all conforming tenders? Then what we have is an offer of a unilateral contract
the company does not comply with its promise (to, say, accept the lowest tender) it will be liable for b
of contract.
, Elements of a
binding contract
,Offers and invitations to treat
• The person who makes the offer is called the offeror and the person to whom the offer is made is calle
offeree.
• An offer has been defined as ‘an expression of willingness to contract on certain terms, made wit
intention that it shall become binding as soon as it is accepted by the person to whom it is addressed’.
• An ‘expression’ may take many different forms eg a letter, newspaper advertisement, email, text me
and even conduct, as long as it communicates the basis on which the offeror is prepared to contract.
• The ‘intention’ referred to in the definition does not necessarily mean the offeror’s actual intention
courts adopt an ‘objective’ approach to deciding whether there was agreement between the parties.
• You can only accept an offer that was addressed to you.
• Invitation to treat not binding
• Goods on display ITT
• Advertisements ITT However, if there are special circumstances that show an intention to be boun
advert may amount to an offer – an offer of a unilateral contract (Carlill V Carbolic).
• Adverts for reward (definite promises to pay the reward if the specified condition is satisfied) Offer
, Auctions + tenders
• Auctions: Auctioneer inviting bids ITT
• Bid Offer
• Auctioneer’s gavel going down acceptance
• Reserve price a minimum price below which the auctioneer will not sell the property. Potential bidde
be made aware there is a reserve price; they just will not know what it is. What they do know, though, i
if the bidding does not reach the reserve price the property will be withdrawn from the sale.
• Auctions of lots that do not have a reserve price may be advertised as being ‘without reserve’.
auctioneer doesn’t sell to anyone, breach of unilateral contract (by auctioneer, not owner of goods).
• Tenders:
- Invitation to submit tenders ITT
- Tenders offers
- But what if the company had specifically promised to accept the lowest tender, or at least imp
promised to consider all conforming tenders? Then what we have is an offer of a unilateral contract
the company does not comply with its promise (to, say, accept the lowest tender) it will be liable for b
of contract.
