Law - Contract
Terms in this set (20)
The person making the offer
The person to whom the offer is made
What is an offer?
A statement of the terms by which the offer or is prepared to be bound. All that is required is acceptance by the offeree. No further negotiations
What is an invitation to treat?
An invitation to someone to make an offer (willingness to negotiate). This leaves the person who issued the invitation able to decide whether or not to accept any subsequent offers
Differences between a offer and invitation to treat
- Offers can be accepted to form a contract whereas an invitation to treat cannot
- An invitation to treat shows a willingness to enter negotiations
What are the examples of invitation to treat?
- Displays of goods in shop windows FISHER V BELL
- Goods on display in supermarkets
- Advertisements in magazines, catalogues and online PARTRIDGE V CRITTENDEN
- Auction sales PAYNE V CAVE
- Responses to requests of info HARVEY V FACEY
Who can an offer be made to?
- One person or a group in which case it can only be accepted by that group
- The whole world, such as offering an award. This is accepted by whoever that does what is set out in the poster CARLILL V CARBOLIC SMOKE BALL CO
When does an offer come into existence?
- A person cannot accept what he or she does not know about
- An offer must be communicated
1) In writing. The offer of the reward in CARLILL was communicated as soon as C read the advertisement in the newspaper
2) Orally. Communicated when it is heard by the offeree
3) By conduct. Communicated when seen by the offeree
What is acceptance?
An unconditional agreement to all the terms of the offer by words or conduct
If the acceptance is by conduct...
It must be clear that the offeree did the required conduct with the intention of accepting the offer
Acceptance must usually be communicated to...
The offeror or someone acting on their behalf. Silence is insufficient, a positive act is required FELTHOUSE V BINDLEY
What are the exceptions to the rule that acceptance must be communicated?
- Unilateral contract - one party promises to pay the other a reward if the other party does a certain act CARLILL V CARBOLIC SMOKE BALL CO
- Postal rule - acceptance takes place as soon as the letter is posted ADAMS V LINDSELL
It doesn't matter if it gets lost in the post HOUSEHOLD FIRE INSURANCE V GRANT
How can an offer come to an end apart from acceptance?
- Counter offer
- Lapse of time
- Specified time
- Death of the offeror
What is rejection?
The offeree refusing the offerors offer. This cannot be later accepted if the offeree changes their mind
What is revocation?
The offeror can withdraw their offer at any time before it is accepted. BYRNE V VAN TIENHOVEN
What is a counter offer?
A response introducing new terms rather than accepting the original offers terms. It kills off the original offer which then cannot be accepted by the offeree. HYDE V WRENCH
What is lapse of time?
- If the offer or sets a time limit for the acceptance of the offer, the offer only exists during the set times.
- Where no time limit is specified the offer will remain open for a reasonable time, depending on the circumstance. RAMSGATE VICTORIA HOTEL V MONTEFIORE
What is consideration?
For there to be a contract both parties must contribute something real and of some actual value to the agreement CURRIE V MISA
What are the rules of consideration?
- Both parties must give something real and of some value WHITE V BLUETT
- The value put in by one person doesn't have to match that put in by the other CHAPPELL CO V NESTLE CO
- Consideration must move from the promisee TWEDDLE V ATKINSON
- It must come after the agreement rather than something that has already been done RE MCARDLE
What exception is there to consideration
When one party has asked the other to act and although payment is not specifically mentioned at the time, it is implied that the work or service will be paid for. If the other party later promises for payment for what has been done at his request, the court can enforce that promise
LAMPLEIGH V BRAITHWAITE
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