offer and acceptance

Question 1

What is a contract?

Answer 1

A contract is a legally binding agreement between parties where consideration is given and an offer and acceptance takes place. There must be intention to create legal relations.

Question 2

What is an offer?

Answer 2

• An offer must be genuine
• An offer is a proposition or suggestion made by one or more people to others. The court will only recognise an offer being valid if it was intended to be an offer.
• The offer must be definite in its terms

Question 3

How can an offer be given and who can it be given to?

Answer 3

• An offer may be express (in writing or verbal) or implied from conduct
• An offer can be made to an individual person/a group of people/the whole world

Question 4

Partridge v Crittenden

Answer 4

Adverts are considered as invitations to treat.

Question 5

Fisher v Bell

Answer 5

Example case. An invitation to treat

Question 6

What is a unilateral officer?

Answer 6

• a public one sided offer
• a promise to give someone something if they do something
• you do not explicitly accept, you do what is asked then accept

Question 7

Carlil v Carbolic Smoke Ball Co

Answer 7

• “if you use our smoke ball and still get the flu we will give you $100”
• They were bound to give her $100
• Example of a unilateral offer

Question 8

What is a bilateral offer?

Answer 8

• in this case, both parties are making a promise to each other
• it is a mutual agreement where both sides agree to do something
• if one party doesn’t fulfill their promise, the other party doesn’t have to either

Question 9

Harvey v Facey

Answer 9

A request for information. if someone requests information, your reply is not an offer.

Question 10

Thornton v Shoe Lane Parking

Answer 10

an offer can be made by a machine

Question 11

How can an offer end?

Answer 11

• most commonly through acceptance
• through revocation (the people you’ve made the offer with have to know the offer is over, it can be withdrawn at anytime

Question 12

Routledge v Grant

Answer 12

even if you’ve said the offer will remain open for a period of time, you can still withdraw it within the time

Question 13

Dickinson v Dodds

Answer 13

revocation can be communicated by a third party

Question 14

What does it mean if an offer is rejected?

Answer 14

the offer is now closed

Question 15

Hyde v Wrench

Answer 15

a counter offer counts as rejection

Question 16

What does a lapse of time mean?

Answer 16

if the offer time frame has closed or if it has been a significant amount of time its closed

Question 17

Ramsgate Victoria Hotel

Answer 17

Example case. the lapse of time was 5 months, circumstances has changed

Question 18

What happens if the person who made the offer dies?

Answer 18

you pay your respects

Question 19

Define acceptance

Answer 19

the offeree must accept the exact terms proposed by the offeror unconditionally
- this is known as the mirror image rule

Question 20

Hyde v Wrench

Answer 20

the acceptance wasn’t the mirror image of an offer it was a counter offer

Question 21

Explain the postal rule

Answer 21

• acceptance is complete immediately after the letter has been posted, even if it is destroyed or delayed in the post
  1. post must e the usual method of communication
  2. the letter has been properly addressed and stamped
  3. proof of postage can be provided
  (outdated rule)

Question 22

Thomas v Solicitors

Answer 22

• obiter dicta
• emails are treated as communication as soon as they’re received.
• if it is sent outside of business hours it may not count as received until business hours.

Question 23

Felthouse v Bindley

Answer 23

silence is not acceptance

Question 24

Holywell Security v Hughes

Answer 24

Example case. The method stipulated was written acceptance.
- If the method of acceptance is stipulated then that is how you must respond.