Offer & Acceptance

Question 1

What is the difference between an offer, and an invitation to treat?

Answer 1

Offer = clear firm indication of terms
Invitation to treat = not legally binding

Question 2

What does Gibson v MCC say about invitations to treat

Answer 2

-negotiation about a council house

An invitation to treat is NOT an offer

Question 3

What are the 3 types of invitations to treat

Answer 3

Goods in a shop window

Goods on a shelf

Written advertisements

Question 4

What case says goods in a shop window are an invitation to treat?

Answer 4

Fisher v Bell

Question 5

What case says goods on a shelf are an invitation to treat?

Answer 5

PSGB v Boots

Question 6

What case says written advertisements are an invitation to treat?

Answer 6

Partridge v Crittenden

Question 7

According to Carlill v CSBC, what are the two exceptions as to when an offer can be made from an ad?

Answer 7

Carlill = smoke ball medicine

Offer can be made from a written ad IF:
1. advert is unequivocally clear in details
2. it is a unilateral contract open to everyone

Question 8

What does Harvey v Facey say?

Answer 8

-asked about the price of a farm

A request for invitation (and a response to this request) ≠ offer

Question 9

Whats the difference between a uni/bi lateral contract

Answer 9

Unilateral - a contract fulfilled by an offeree’s performance; no one is forced to take on the contract

Bilateral - both parties are obliged to perform their side of a contract

Question 10

When do offers end?

Answer 10

Offers end in several ways:
* Acceptance
* Rejection
* Death of the offeror
* Counter-offer
* Lapse of time
* Withdrawal/revocation

Each method has specific implications for the validity of the offer.

Question 11

What happens when a counter-offer is made?

Case?

Answer 11

A counter-offer ends the original offer.

As per Hyde v Wrench

Question 12

What is meant by ‘lapse of time’ in the context of offers?

Case?

Answer 12

Offers end after the lapse of a reasonable time if no time is stated.

Ramsgate Hotel v Montefiore

Hotel agreed to sell shares 5 months later than when the offer was made

Question 13

Can an offer be revoked after a set time has been communicated?

Answer 13

Yes, offers can be revoked even if they were set to be open for a specified amount of time.

This is supported by the case of Routledge v Grant.

Question 14

What is required for a revocation of an offer to be valid?

Answer 14

The revocation must be communicated to the offeree.

This was established in Dickenson v Dodds.

Question 15

Can an offer be revoked based on third-party information?

Answer 15

Yes, offers can be revoked when the offeree receives reliable information from a third party that the offer was withdrawn.

This is also supported by the case of Dickenson v Dodds.

Question 16

What are the forms of acceptance?

Answer 16

Acceptance can be made in writing, verbally, or by conduct

This highlights the different ways acceptance can be communicated in contract law.

Question 17

Is there acceptance until the offeree communicates it to the offeror?

Answer 17

No, there is no acceptance until offeree communicates it to offeror

This emphasizes the necessity of communication in the acceptance process.

Question 18

What case established that the offeror can specify how acceptance is communicated?

Answer 18

Yates v Pulleyn

This case illustrates that the offeror has the right to dictate the method of acceptance.

Question 19

What does the case Felthouse v Bindley signify regarding silence and acceptance?

Answer 19

Silence/inactivity is NOT acceptance UNLESS it is a unilateral contract

This case indicates the limitations of using silence as a form of acceptance.

Question 20

What is the significance of the case Carlill v CSBC in contract law?

Answer 20

It established the concept of unilateral contracts

This case is a key example of how unilateral contracts function in legal terms.

Question 21

What does the postal rule state regarding acceptance?

Case?

Answer 21

Postal acceptance is communicated as soon as the letter is put in the offeree’s postbox

Adams v Lindsell

This rule applies regardless of when the offeror receives or reads it.

Question 22

What conditions must be met for the postal rule to apply?

Answer 22

The letter must be stamped and addressed correctly, and sending letters must be the usual term of communication

These conditions ensure the validity of postal acceptance.

Question 23

In the case Byrne v VT, what was the outcome regarding revocation?

Answer 23

Only acceptances are affected by the postal rule, not offers or revocations

This case clarifies the limitations of the postal rule concerning revocation.

Question 24

What does Holwell v Hughes state about acceptance when ‘notice in writing’ is requested?

Answer 24

Acceptance is only effective when received by the offeror

This case highlights the importance of receipt in the acceptance process when specific conditions are imposed.

Question 25

What is the significance of Entores v MFEC in contract law?

Answer 25

It establishes that acceptance via telex/fax must be communicated to be effective. ## Footnote This is where the telex/fax message says "delivery recieved" on the other side, NOT just when it is sent

Question 26

When is acceptance considered effective WITHIN office hours according to Brinkibon?

Answer 26

Effective as soon as it is received. ## Footnote This means that the acceptance is legally binding the moment it arrives during the specified office hours.

Question 27

How does acceptance work outside of office hours under Entores?

Answer 27

The court looks at the parties' intentions. ## Footnote Acceptance may not be binding until the next working day, depending on the circumstances and intentions of the parties.

Question 28

What does Brinkibon apply to?

Answer 28

Both offers and revocations. ## Footnote Brinkibon further develops the principles established in Entores regarding electronic communications in contract law.

Question 29

How does Brinkibon differ from the postal rule?

Answer 29

It emphasizes that acceptance must be communicated rather than being effective upon posting. ## Footnote The postal rule allows acceptance to be effective when mailed, which is not the case under the Brinkibon principles.

Question 30

According to Article 11 of the E-Commerce Regulations 2002, what is considered an invitation to treat?

Answer 30

Advertisements. ## Footnote This implies that advertisements are not binding offers but invitations for potential customers to make offers.

Question 31

What does placing an order online signify in contract terms?

Answer 31

It is an offer to buy. ## Footnote The act of placing an order online indicates the buyer's intention to enter into a contract.

Question 32

What does an email stating 'your order has been received' signify?

Answer 32

It is only an acknowledgment of the offer. ## Footnote This means that the order is recognized but not yet accepted.

Question 33

What does an email stating 'goods have been dispatched' signify?

Answer 33

Acceptance of the order. ## Footnote This indicates that the seller has accepted the buyer's offer and is proceeding with the transaction.