Invitations to tender, Auctions, Termination of offer - rejection (Offer and acceptance)- FS Flashcards
(10 cards)
What is the general legal classification of an invitation to tender?
An invitation to tender is generally regarded as an invitation to treat, not an offer. This means it invites interested parties to submit offers, which the issuer may then accept or reject.
Under what circumstances can an invitation to tender amount to a unilateral offer?
If the invitation to tender expressly undertakes to accept the highest or lowest bid, it constitutes a unilateral offer. A contract arises when a party submits the specified bid.
In an auction setting, how is the auctioneer’s call for bids legally classified?
The auctioneer’s call for bids is considered an invitation to treat. A contract is only formed when the auctioneer accepts a bid by bringing down the hammer.
What is the legal effect of a bidder withdrawing their bid before the hammer falls in an auction?
The bidder is free to revoke their offer at any point before the auctioneer’s hammer falls, as no binding contract has been concluded at that stage.
What distinguishes an auction with reserve from one without reserve?
In an auction with reserve, the seller is not obligated to sell if the reserve price is not met. In an auction without reserve, the seller is obligated to sell to the highest bidder, regardless of price.
What legal remedy is available to the highest bidder if an auction without reserve fails to complete the sale?
The highest bidder may claim damages for breach of a unilateral contract, but is not entitled to the goods themselves under this principle.
How can an offer be legally terminated through rejection?
An offer is terminated by rejection once the offeree communicates it to the offeror. Once rejected, the original offer cannot be revived or accepted.
How does a counteroffer affect the original offer in contract law?
A counteroffer acts as a rejection of the original offer and terminates it. The original offer can no longer be accepted once a counteroffer has been made.
What is the legal effect of a request for further information on an existing offer?
A request for further information is not a counteroffer. It does not terminate the original offer, which remains open for acceptance.
What distinguishes a counteroffer from a request for further information?
A counteroffer introduces new terms and rejects the original offer, whereas a request for further information seeks clarification and leaves the original offer intact.
