Offer and Acceptance

What is revocation?

'The rescinding, annulling or withdrawal of an offer.'

What is a 'battle of forms'?

"The situation which arises where one or both parties attempts to reply on their standard terms is often referred to as the battle of the forms."

Definition of an invitation to treat?

'A preliminary statement expressing a willingness to receive offers' They are then free to accept or reject offfers

Definition of an offer?

'Expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as accepted by the person to whom it is adressed.'

Forms of invitation to treat?

1. Advertisements 2. Self-service 3. Auctions 4. Invitations to tender 5. Mere statements of price

What are the reasons for the postal rule?

1. Endless exchanges of letters are avoided 2. Easier to prove a letter was posted than received 3. Post office - common agent

Exceptions to the postal rule:

1. It must be reasonable to post 2. The rule can be ousted by the offeror

How can offers be terminateD?

1. Revocation 2. Lapse of time 3. Failure to comply with a condition precedent 4. Death of one of the parties

What did the case of Pharmaceutical Society of Great Britain v. Boots hold?

A contract to pay for the goods in a self service shop was formed at the cash desk, not when the customer took them into his possession from the shelf. A registered pharmacist was therefore only required to be at the cash desk. A shop keeper could reject the offer of payment if desired.

What is the postal rule?

A postal acceptance takes effect when the letter of acceptance is posted.

What is the case for the postal rule?

Adams v. Lindsell (1818)

What is the communication rule?

An acceptance must be brought to the notice of the offeror.

What is an example case for the resolution of a 'battle of form's in acceptance?

British Road Services Ltd v. Arthur Crutchley A delivery note contained C's conditions, D stamped the note saying received under his conditions. Implied acceptance of that counter offer

Distinction between offers and invitations -- how?

By applying rules of law e.g. advertisements, self-service etc.

When does the postal rule not reply (when dealing with mail)?

Byrne v. Van Tienhover During revocation. It must be communicated to the offeree. The letter must reach him

Which case illustrates a unilateral contract?

Carlill v. Carbolic Smoke Ball Company Ltd [1893] Sold a medicine advertised as preventing influenza - defendant had put money in an account as part of the guarantee. Argued it was a 'mere puff'. Held to be the advert was a unilateral contract, treated as an offer rather than an invitation to treat.

When can revocation via a 3rd party be valid (and case?)

Dickinson v. Dodds 1. if the 3rd party is a reliable source of information 2. if the 3rd party is one on whom both parties can rely

Could postal acceptance be retracted by a faster means of communication such as telephone?

Entores v. Miles Far East Corp In instantaneous modes of communication e.g. acceptance by telephone, telex or fax, communication rule applies e.g. contract made when offer sent.

What is the case for the communication rule?

Entores v. Miles Far East Corp. An acceptance must be brought to the notice of the offeror.

What is the case which say acceptance of an offer cannot be made through silence?

Felthouse v. Brindley "If I hear no more from you, I shall consider the horse mine" The intention to accept the offer had never been communicated, therefore silence can't = acceptance

A display of goods in a shop window is not an offer but an invitation to treat - what is the case?

Fisher v. Bell [1961] Display of knives in shop window. The display was not an offer, but an invitation to treat and so he was not breaking the law.

Which two cases help to distinguish an offer from an invitation to treat?

Gibson v. Manchester City Council "council may be prepared to sell" - invitation to treat Storer v. Manchester City Council "If you sign the agreement, I will sign on behalf of the council" - offer

What is the case and precedent for counter offers?

Hyde v. Wrench A counter offer impliedly rejects an original offer which is no longer open to accept. Since the counter offer destroys the original offer, the roles of offeror and offeree become reversed. This can continue until agreement is made.

What is an example of unilateral contracts?

Offers of rewards in return for an act.

Case for advertisements as invitations to treat?

Patridge v. Crittenden - prosecuted for selling wild birds, held his advert in newspaper only asked for offers = invitation to treat

Which case concerned the display of goods in a self service shop?

Pharmaceutical Society of Great Britain v. Boots Cash Chemists Ltd [1953]

What is the case for revocation by lapse of time?

Ramsgate Victoria Hotel Co. v. Montefiore An offer lapses after a 'reasonable time' dependant on the subject matter (perishable?) or if the contract could fluctuate rapidly.

What is the case for revocation?

Routledge v. Grant An offer may be withdrawn any time prior to acceptance. The revocation must also be communicated to the offeree.

What is the case and precedent for requests for information?

Stevenson, Jaques & Co. v. McLean A request for more information ≠ offer. Original offer remains intact and up for acceptance.

What is the result of an unresolved 'battle of forms'?

There is no contract, since offer and acceptance do not match. Each communication is considered a counter offer. Acceptance is usually inferred by conduct - and it must be the terms of the last counter offer.

Which case defined offer/acceptance in the case of automatic vending machines?

Thornton v. Shoe Lane Parking The customer is committed at the moment when he puts his money into the machine. This is when acceptance takes place.

Define unilateral and bilateral contracts?

Unilateral 1. A promise in return for an act 2. Offeror only bound if specific act is performed (provided there is consideration and Int.) Bilateral: 1. A promise in return for a promise 2. Offer and acceptance are both promises 3. Both parties immediately bound (provided there is consideration and int.)

There is no need to communicate acceptance in unilateral contracts?

Yes - Carlill v. Carbolic Smoke Ball Co. The offer is accepted by fully performing the stipulated act or forbearance The offer can be withdrawn by only doing some performance