Agreement Flashcards
(25 cards)
What is an offer?
An expression of willingness to contract on certain terms made
with the intention that it shall become binding as soon as it is accepted by the person to
whom it is addressed
What approach does the court adopt when deciding whether there was agreement between the parties?
The courts look at what was said and done between the parties, from the point of view of a ‘reasonable person.’
Who can accept an offer?
You can only accept an offer that was addressed to you.
What are invitations to treat?
Statements are simply inviting negotiation.
Are goods on display an offer or an invitation to treat?
Goods on display are simply an invitation to treat and the offer to buy is made at the checkout.
Where goods or services are advertised are they offers or invitations to treat?
They are generally regarded as being an invitation to treat.
Are adverts of reward offers or invitations to treat?
Adverts of reward have been treated as offers; namely definite promises to pay the reward if the specified condition (eg supply of information) is satisfied.
When is an offer accepted at an auction?
It is when the auctioneer’s gavel goes down; that is the acceptance of the last bid, which was the offer (Sale of Goods Act (SGA) 1979, s 57(2)). The auctioneer inviting bids is simply an invitation to treat.
What happens when an auction is advertised as being ‘without reserve’?
The items must be sold to whoever made the highest bid (however much that might be). If the auctioneer refused they would be in breach of a unilateral contract.
When is an offer accepted during a tender process?
The invitation to submit tenders is an invitation to treat and the tenders will each be offered to do the work.
If a company had specifically promised to accept
the lowest tender, or at least impliedly promised to consider all conforming tender, then
what we have is an offer of a unilateral contract and if the company does not comply with its promise (to, say, accept the lowest tender) it will be liable for breach of contract.
What is acceptance?
An expression of assent that is unqualified.
What is required for an ‘expression of assent’?
Acceptance must be
communicated and it must be communicated by the offeree or their authorised agent. This
may be by words or conduct.
What is required for the expression of acceptance to be unqualified?
The need for the expression to be ‘unqualified’ means that a conditional response cannot
amount to acceptance and create a contract.
What is a counteroffer?
A conditional response to an offer that effectively destroys the original offer and represents a new offer that the other party is free to accept to reject.
What is the battle of the forms?
Both sides pass their own Ts & Cs to the other side for agreement. These can be seen as counter-offer after counter-offer where the last shot wins.
What is the ‘postal rule’ for acceptance?
A letter of acceptance will be effective when posted even if the letter is lost in the post. For
the postal rule to apply, though, the following conditions must be satisfied:
It was reasonable in all the circumstances to use the post;
The letter was properly addressed, stamped and posted; and
The postal rule had not been excluded by the offeror.
How can the postal rule be excluded by the offeror?
The rule would be excluded if, for example, the offeror had stipulated or otherwise implied
that they needed to be notified in writing or ‘told’ of any acceptance.
What happens when an offer is terminated?
The offer can no longer be accepted.
How can an offer be terminated?
Express rejection
Withdrawal
Counteroffer
Lapse of time
What is the rule for the revocation of an offer?
Generally, an offer may be revoked (withdrawn) any time before acceptance even if the
offeror promised to keep the offer open for a certain period of time. The only exception to
that is if the offeree gave something in return for the promise to keep the offer open.
However, revocation must be communicated to the offeree in order to be effective.
When does acceptance take place for offers of unilateral contract?
The general view is that with unilateral contracts no obligations arise until the specified act is completed;
in other words, acceptance only occurs when performance is complete.
However, it has been suggested that in addition to the express
offer, there is an implied promise not to be revoked if the specified act is started within a reasonable time. The acceptance and consideration for the implied promise is the commencement of the act.
How can an offer made to the public at large be revoked?
The best the offeror can do in the circumstances is publish a notice of revocation in the same place as the offer and with the same prominence.
Does the postal rule apply to a notice of revocation?
The postal rule does not apply.
When will an offer be terminated for lapse of time?
After a reasonable time which will depend upon all the circumstances.
