STUDY UNIT 3 Flashcards
Consensus is reached?
Consensus is reached when one party makes a valid offer and the other party unequivocally accepts the offer.
GENERAL RULE:
parties can express their intentions in any form:
- in writing,
- orally
-through conduct
- tacitly or in silence
- the offer is often in writing and the acceptance tacit.
What is an OFFER?
An offer is a statement of intention which an offeror expresses the performance and the terms to which he is prepared to bind himself in.
REQUIREMENTS OF A VALID OFFER
- the offer must be FIRM
- the offer must be COMPLETE
- the offer must be CLEAR and CERTAIN
LEGAL EFFECT OF AN OFFER:
a unilateral declaration of will by one party does not in itself give raise to the binding obligations.
CONSUMER PROTECTION ACT
further requirements for a contract to qualify as a “consumer agreement” :
- grey-market goods (s25)
- negative option marketing (s31)
- cooling-off period (s32)
- catalogue marketing (s32)
- bait marketing (s30)
OFFERS TO THE PUBLIC & CASE LAW
- Advertisements - Crawley v Rex case
- Promises for rewards - Carlii v Carbolic Smoke Ball Co. case.
- Call for tenders
TERMINATION OF THE OFFER
- Revocation
- Rejection
- Death of the other party
- Loss of legal capacity
- Effluxion of the prescribed time.
What is ACCEPTANCE?
is a clear declaration of intention by the offeree, unequivocally assenting to all the terms of the proposal embodied in the offer.
The offeree’s intention may be:
- expressly stated
- tacitly indicated
- silence
REQUIREMENTS OF ACCEPTANCE:
Acceptance must be:
- unqualified
- by the person to whom the offer was made.
- a conscious response to the offer
- in the form prescribed by the offeror
WHEN AND WHERE ACCEPTANCE TAKES EFFECT:
-when parties contract in each other’s presence
-inter absentes
