Offer & Acceptance Flashcards
(35 cards)
Usual test of court
Objective / reasonable standard
Exception to objective test
Subjective test - the offeree knew/ ought to have known the offeror made a mistake.
What facts determine the subjective test?
key terms, market price, price difference, previous correspondence
Offer
Communication where the parties intend to be legally bound on key specified terms
Invitation to treat
Communication to negotiate to agree terms at a later date
What language is used in an invitation to treat
Conditional
ITT examples
advertisements, display of goods, websites, auctions, tenders
How to identify an offer:
- Precise terms (bets & final)
- No further negotiations
- Intention to be bound
When is an advertisement an offer?
A promise in exchange for act e.g reward (unilateral)
When is an auction an offer?
Without reserve - promise to sell to highest bidder
When is a tender an offer?
Accept highest bid/ conditions set out are met
Bilateral offer
Offer/ promised in exchange for another offer/ promise
Unilateral offer
Offer in exchange for a specified act
Conditions of a unilateral offer
Offer must be communicated
Offeree must be aware
Acceptance
Complete agreement to the terms of the offer by words/ conduct
Mirror image rule
Acceptance of the exact terms
Counter offer
New terms are given and terminates the original offer
Request for payment terms
Extend period of time/ instalments = no termination of original offer
Doctrine of last shot
The last set of terms given before a party starts to perform applies to the contract.
Bilateral offer acceptance
Must be communicated to the offeror
Must be on the terms specified
(not specified the alternative must be no slower)
Receipt rule
Offeror must receive for acceptance to be valid
Exception to the receipt rule
Postal rule
Postal rule
Binding as soon as posted
Conditions of postal rule
- correctly addressed
- post office / Royal Mail
- no courier or direct to person
- parties can exclude and set out terms of acceptance
