1 Flashcards
how is an offer made?
- oral, written
- an offeror makes an offer by proposing a set of terms with the intention that if the terms are accepted, a legally binding agreement will be created
what is the legal significance of accepting an offer?
and what are the 3 things that need to be present when accepting an offer?
as soon as the offer is accepted a contract is made
acceptance must be:
1. mirror image of the offer
2. unconditional
3. communicate to the offeror
what is an invitation to treat?
- invitation to negotiate or to make an offer - it is not an offer
e.g. goods on supermarket shelves
what is a bilateral offer/contract?
bilateral is where there is an exchange of promises
how is the offer in a unilateral contract made?
- An offer is made when the offeror gives a definite promise to be bound if the offeree performs some specified act.
e.g. reward posters
at what point does an acceptance of an offer become effective?
- offer is effective when it is communicated to the offeror
- as soon as acceptance is received by the offeror a contract is created
- communication of acceptance is not necessary when the postal rule applies or in unilateral contracts
- what is the effect of the postal rule?
- in what circumstances will the rule not apply?
- a letter of accpetance is effective when it is properly posted
- parties can contract out of the rule by stating that acceptances have to be received
what effect does a counter offer have on an offer?
a counter offer will revoke the offer so then a new offer is made
at what stage will a revocation of an offer be effective?
effective once it is recieved by the offeree
- this is the case whether or not the revocation was posted
for how long will an offer remain open?
- unless revoked it will remain open for a stipulated time (if there is one) or a reasonable time if not
