Agreement (Offer and Acceptance)
- Created by: huth0
- Created on: 19-02-17 23:46
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- Agreement
- Offer
- Definition: When the offeror unequivocally expresses to the offeree his willingness to make a binding agreement on the terms he has specified if they are accepted by the offeree
- 1. The form is not generally important
- 2. It must be communicated to the offeree
- 3. It must be distinguished from 'invitations to treat'
- Invitation to Treat
- Concerned with an ongoing negotiation
- Advertisement
- Partridge v Crittenden 1968
- Display of goods in shop
- Fisher v Bell 1961
- Boots v Pharmaceutical Society of Great Britain 1953
- Fisher v Bell 1961
- Offers can be made to one or more person(s)
- Carlill v Carbolic Smoke Ball Co 1893
- 'unilateral' offer
- Unilateral contracts provide exceptions to certain rules:
- Acceptance need NOT be communicated (accepted by conduct)
- Revocation need not be communicated to everyone who received the offer
- If offer made to the world then it may be revoked before performance has begun by taking reasonable steps to notify the offerees
- Errington v Errington 1952
- If offer made to the world then it may be revoked before performance has begun by taking reasonable steps to notify the offerees
- Unilateral contracts provide exceptions to certain rules:
- 'unilateral' offer
- Carlill v Carbolic Smoke Ball Co 1893
- Acceptance
- "...a final and unqualified expression of assent to the terms of an offer."
- The party accepting must know of the offer at the time he accpets
- Only offeree can accept offer
- Acceptance must match the offer exactly
- 'Counter-Offer'
- Offeree attempts to introduce new terms or conditions to the original offer
- Hyde v Wrench 1840
- Offeree attempts to introduce new terms or conditions to the original offer
- Must be communicated to the offeror
- Silence is not acceptance.
- "If I hear no more from you then I will assume that you have accepted" - Felthouse v Bindley 1862
- Silence is not acceptance.
- Must be in form stipulated by the offeror if made clear this is essential
- Postal Rule
- Offer made by post is only valid when it is recieved
- Revocation of an offer by post is only valid when it is received
- Acceptance of an offer by post is valid when it is received
- It must be reasonable to use the post and the letter must be validly stamped and correctly addressed
- Adams v Lindsell 1818
- It must be reasonable to use the post and the letter must be validly stamped and correctly addressed
- Acceptance of an offer by post is valid when it is received
- Instantaneous means of communication such as face to face or telephone use the general rule - i.e. valid when received
- Entores v Miles Far East Corporation 1955
- Withdrawal or Revocation
- The offeror may withdraw or revoke the offer at any time before acceptance
- Byrne v Van Tienhoven 1880
- However, to be effective this must be brought to the offerees attention, not necessarily by the offeror
- Pickfords v Celestica Ltd 2003
- Rejection or Counter-Offer
- This destroys the original offer
- Hyde v Wrench 1840
- Lapse of Time
- A time may be specified in the offer by which it must be accepted before terminated. Otherwise an offer lapses by a reasonable time
- Ramsgate Victoria Hotel v Montefiore 1866
- Death may end the offer - depending on the circumstances, who has died and what was being offered
- A time may be specified in the offer by which it must be accepted before terminated. Otherwise an offer lapses by a reasonable time
- This destroys the original offer
- The offeror may withdraw or revoke the offer at any time before acceptance
- Offer
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