Consolidation of contract formation

Valid Contract - Promblem Questions 

1. Is the advert/notice/letter/statement an offer or an invitation to treat?

- The 5 items listed – advertisements, display of goods, invitations to tender, auctions and websites are generally 'invitations to treat' rather than offers – so they can't be 'accepted' to form a binding contract.

2. If an offer, is there a counter offer or a request for further information. Is the acceptance a mirror image (unqualified)?

1. Mirror Image Rule:

• Acceptance must match the terms of the offer exactly. This means it must be unqualified and unconditional.
• If the response to the offer changes or adds new terms, it is not acceptance but a counter-offer.

2. Counter-Offer:

• A counter-offer changes the terms of the original offer.
• Making a counter-offer effectively rejects the original offer and creates a new offer.
• The original offer cannot be accepted after a counter-offer is made unless it is re-offered.

3. Request for Further Information:

• A request for more details or clarification about the offer is not a rejection and does not constitute a counter-offer.
• The original offer remains open and can still be accepted after the additional information is provided.

Key Points to Consider:

• Acceptance Must Be Unqualified:Distinguishing Counter-Offers from Requests for Information:
  • The acceptance must be a clear agreement to the terms of the offer without any modifications.
  • Understand the difference between a counter-offer (which negates the original offer) and a mere inquiry (which keeps the original offer open).

3. Is acceptance in response to the offer? 

Awareness of the Offer: 

• The offeree must know about the offer when accepting it. Acceptance made without knowledge of the offer does not create a binding contract. 

Acceptance by the Proper Party: 

• The offer can only be accepted by the person or group to whom it was addressed. 

• If an offer is made to a specific individual or entity, only that individual or entity can accept it. 

• In cases where an offer is made to the public at large (e.g., a reward for lost property), anyone who becomes aware of the offer can accept it by performing the required act. 

4. Is acceptance made using a valid mode? 

Specified Mode of Acceptance: 

• If the offeror specifies a particular method of acceptance, this must be done using explicit and mandatory language (e.g., "must"). 

• The offeror must also explicitly exclude other modes of acceptance for the specified method to be mandatory. 

Example: "You must send your acceptance via registered mail, and no other method will be valid." 

Authority: 

• Manchester Diocesan v CGI: This case establishes that the offeror must use clear and mandatory language to prescribe an exclusive mode of acceptance. 

• Tinn v Hoffman: If the offeror does not use mandatory language or explicitly exclude other methods, then any method of acceptance that is no less advantageous to the offeror will be valid. 

5. Is acceptance communicated? 

The…