Offer Flashcards
(32 cards)
What is a contract according to Sir Frederick Pollock?
A promise or set of promises which the law will enforce.
How does the American Restatement of Contracts 1981 define a contract?
A promise or set of promises for which the breach gives a remedy or the performance is recognized as a duty.
What is the central notion of a contract?
The concept of bargain.
What elements must be met for a contract to be valid?
- Agreement (offer and acceptance)
- Capacity to enter into a contract
- Consideration
- Intention to create legal relations
What constitutes a valid offer?
A statement of intention to be bound on certain terms made by one party to another, which upon acceptance forms a binding contract.
What must a valid offer do?
Be communicated to the offeree so that they may accept or reject it.
What was established in Taylor v Laird (1856) regarding offers?
An offer to assist had not been communicated, so the owners did not have to pay for his assistance.
In what forms can an offer be communicated?
- Writing
- Orally
- By conduct
Can an offer be made to the whole world?
Yes, as established in Carlill v Carbolic Smoke Ball Company (1893).
What is the distinction between an offer and an invitation to treat?
An invitation to treat indicates a willingness to negotiate but is not yet prepared to be bound.
What is an example of an invitation to treat?
Goods on display in a shop window or on supermarket shelves.
What was held in PHARMACEUTICAL SOCIETY OF GB v BOOTS (1953) regarding self-service shops?
The customer offers to buy goods at the checkout, and the shopkeeper accepts the offer.
In Fisher v Bell (1961), what was determined about advertisements?
Advertisements are generally invitations to treat.
What constitutes a unilateral offer in advertisements?
An advertisement that is clear, definite, and explicit, leaving nothing open for negotiation.
What is the legal implication of a price list or catalogue?
Generally an invitation to treat.
What happens in an auction sale regarding bids?
Bids are offers to buy items, and the auctioneer’s call of the hammer constitutes acceptance.
What is the effect of an auction sale without reserve price?
It may constitute an offer to the highest bidder.
What determines whether a statement amounts to an invitation to treat?
The intention of the parties and the surrounding circumstances.
What can terminate an offer?
- Rejection of offer/Counter offer
- Revocation
- Lapse of Time
- Failure of a condition
- Death
What is the rule regarding revocation of an offer?
An offer can be revoked any time until acceptance.
What is the significance of Routledge v Grant (1828) regarding revocation?
The promise to keep an offer open can be revoked unless there is a binding contract to keep it open.
What happens if an offer lapses due to failure of a condition?
The offer will not be capable of acceptance if the condition is not satisfied.
What occurs if the offeror dies?
The offeree cannot accept after being notified of the offeror’s death.
What is a tender notice generally considered?
An invitation to treat.
