Offer And Acceptance

Question 1

What are adverts?

Answer 1

An invitation to treat

Question 2

Who is the offeror?

Answer 2

The person putting forward the offer

Question 3

Who is the offeree

Answer 3

The person that receives the offer and has a choice to accept or decline or make a new one

Question 4

What is the case of Fisher v Bell

Answer 4

Shop displays in a window is usually only an invitation to treat not an offer

Question 5

What is PSGB v Boots

Answer 5

Shop displays on shelves are usually only an invitation to treat not an offer

Question 6

What is the case of Partridge v Crittenden?

Answer 6

Written advertisements in newspapers are usually on an invitation to treat not an offer

Question 7

What is the case of Carlill v Carbolic Smoke Ball Co?

Answer 7

For an advert to be an offer it has to be unequivocally clear in its details. Three things that make an advert clear it is an offer is it including precise instructions, precise amount of money paid which is then finally supported by deposit

Question 8

What is the case of Harvey v Facey?

Answer 8

A response to a request for further information is not an offer

Question 9

What is a bilateral contract?

Answer 9

Both parties are obliged to perform their side of the contract

Question 10

What is the definition of an agreement?

Answer 10

The acceptance of the terms of an offer

Question 11

What is the definition of an offer?

Answer 11

A proposal of terms to form an agreement

Question 12

What is the definition of an acceptance?

Answer 12

An offeree agreeing to the same terms as the ones laid out in the offer. The terms agreed must mirror one another

Question 13

What is an indication to treat?

Answer 13

An indication of what terms might be agreeable

Question 14

What is a unilateral contract?

Answer 14

A contract is filled by an offerees performance but no one is forced to take on the contract

Question 15

When do offers end?

Answer 15

1) acceptance- if the offeree agrees with the terms, the offer turns into agreement
2) rejection/refusal- if an offeree rejects an offer, it ends
3) death of the offeror- if the offeree knows the offeror has died, the offer dies with them. If the offeror does not know the offeror has died, the offer is still capable of being accepted unless a personal service is involved
4) counter offer- if an offeree wants to accept the offer but change a term in it, this will be a counter offer. This counter offer will end the original offer and make a new one and so the original offer can no longer be accepted (unless both parties want to)

Question 16

What is the case of Hyde V Wrench?

Answer 16

Counter offers and the original offer which means that the past offer cannot be accepted (unless both parties agree to it)

Question 17

What is lapse of time?

Answer 17

Sometimes an offer will be open until a particular time. In this situation the offer will end (lapse) when that time has passed.

Question 18

What if there is no set time/date stated in the contract?

Answer 18

An offer can end after lapse of a reasonable time, what a reasonable time varies and all depends on the circumstances

Question 19

What is the case of Ramsgate Hotel v Montefiore?

Answer 19

By not strictly limiting the amount of time an offer can be open for, the courts have allowed for freedom of contract through flexibility

Question 20

What is withdrawal/revocation?

Answer 20

Offers can be revoked by the offeror as long as they have not been accepted- this means that an offer can change their mind

Question 21

What is the case of Routledge v Grant

Answer 21

Offers can be revoked even if they were to be open for a set amount of time however the revocation must be communicated.

Question 22

What is the case of Dickinson v Dodds?

Answer 22

Communicating a revocation someone reliable known by both the offeror and offeree it can count as a revocation

Question 23

What is the case of Yates v Pulleyn?

Answer 23

The offeror can specify the acceptance should be made in a particular way but if an offeror just suggest a mode of communication, then other methods can still work. If no method is specified, any reasonable communication form can be used

Question 24

What is the case of felthouse v Bindley

Answer 24

Silence or inactivity is not acceptance. There has to be positive and consented acceptance

Question 25

What is the case of Adams v Lindsell?

Answer 25

Acceptance by post is communicated as soon as the letter is out into the postbox. Not when the accepting letter is delivered or received by the offeror

Question 26

When will the postal rule not apply?

Answer 26

If the stamp, date or offeror’s details are wrong

Question 27

What is the case of Byrne v Van Tienhoven

Answer 27

The revocation needs to be communicated before the acceptance is made.

Question 28

What is the case of Holwell v Hughes?

Answer 28

If a party requests ‘notice in writing’ of an acceptance the courts will probably interpret this as meaning the letter has to be actually received by the offeror before it is effective

Question 29

What is the case of Entores v Miles Far East Corp?

Answer 29

Acceptance was when telex was received not when it was sent

Question 30

What is the case of Brinkibon?

Answer 30

Messages of acceptance left during business hours are effective once received- therefore it doesn’t matter if the message is not read/listened to

Question 31

What is the case of Article 11 of the E-commerce regulations?

Answer 31

Online trading: the product is the invitation to treat, the offer is the buyer placing the order, the acceptance is the email saying the order has been placed/dispatched, unless the companies terms are different.