Formation of Contract: Offer and Acceptance Flashcards
(35 cards)
What is an invitation to treat?
An invitation to make an offer - a statement that doesn’t propose terms or is not certain
What was held in Gibson v Manchester City Council?
An offer must (a) set out the terms in which the offeror is willing to contract, (b) be certain and (c) have an indication it is binding
What was held in Harvey v Facey?
Facey’s telegram was not an offer but a statement of the price. When Harvey replied to this, it was an offer rather than acceptance
What was held in Partridge v Cittenden?
Advertisements are most likely ITTs and not offers
What is a unilateral contract?
An offer for the reward for an act - the offeror is bound by the contract whereas the offeree has no obligation to carry out the contract
What is a case example of a unilateral contract?
Carlill v Carbolic Smokeball Co.
What was held in Timothy v Simpson?
An item on display in a shop window is an ITT and not an offer as the shop has the right to refuse service
In what cases was the decision in Timothy v Simpson upheld?
- Fisher v Bell
- Pharmaceutical Society of Great Britain v Boots Cash Chemists
What is acceptance?
The unqualified and unequivocal assent to all the terms of the offer
In what ways can acceptance be communicated?
- Verbal
- Written
- conduct
What was held in Felthouse v Bindley?
Acceptance cannot be communicated by silence
What was held in Re Selectmove?
If the offeree himself indicates the offer will be accepted by silence, this is an exception to Felthouse
What was held in Quenerduaine v Cole?
Stipulations as to how an offer is to be accepted must be complied with - this can be implied or expressed
What was held in Ove Arup v Morant Asia-Pacific Construction (no.1)?
If there is a dispute during the negotiation of a contract, the court must consider all the exchanges in context and not seize upon one episode in isolation in order to conclude a contract has been made
What happened in Pagnan SpA v Feed Products Ltd?
When negotiations take place through an intermediary, the question is whether there came a point when the intermediary has obtained the agreement of both parties to the same terms
What was decided by Lord Denning in Butler Machine Tool v Ex-Cell-O?
Whoever gets the last standard form in before performance will have their terms govern the contract - the last shot rule
What was held in Tekdata Interconnections v Amphenol?
The last shot rule is the usual result, however this can be displaced by the course of dealings between the parties
What was held in Entores v Miles Far East?
Lord Denning stated: “if an offeror shouts an offer to an offeree, and the offeree responds but a plane flies overhead and the response is not heard, there is no contract. The offeree must wait and shout back his acceptance so the offeror can hear it”
What is the definition of the postal rule in Adams v Lindsell?
Offer is accepted by post whenever the letter is posted
What was held in Dunlop v Higgins?
If the offeree puts a letter into the post at the right time, he has done all that he is expected to do as far as he is concerned
What was held in Household Fire and Carriage Accident Insurance v Grant?
The postal rule applies where the letter is lost in the post and never arrives
What was held in Brinkibon v Stahag Stahl?
Where acceptance is sent via instant communication, the contract is complete when acceptance is received
What was decided in Thomas v BPE Solicitors?
Given the nature and urgency of the transaction, 6pm was held to be within office hours and therefore, the communication was taken to have been received at that time
What was held in Jones v Daniels?
A counteroffer is a new offer which introduces new terms or attempts to vary the terms of the original offer
