GDL Contract Law Revision Notes(Distinction) 2023 GRADED A

Agreement and Contractual Intention Agreement: In order for parties to reach an agreement, one party must make an offer which is acceptedby the other. ‘Offer’: Professor Treitel: ‘an expression of willingness to contract on certain terms, madewith the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.’ ‘Offeror’: Person who makes the offer. ‘Offeree’: Person to whom the offer is made. ‘Expression’: May take different forms, e.g. a letter, newspaper advertisement, fax and conduct, as long as it communicates the basis on which the offeror is prepared to contract. ‘Intention’: Does not necessarily mean the offeror’s actual intention. Smith v Hughes: Objective test. Courts look at what was said and done between the parties, from the pointof view of a ‘reasonable person’, and try to decide what a reasonable person would have thought was going on. Allied Marine Transport: If the offeror so acts that his conduct, objectively considered, constitutes an offer, and the offeree, believing the conduct of the offeror represents hisactual intention, accepts the offer, then a contract will come into existence. Subjective element of the offeree must believe the offeror intended to make an offer. Offer or Invitation to Treat: Offers are distinct from inviting negotiation E.g. ‘I am thinking of selling my car, £7,000 would be a realistic asking price, would you be interested in buying it?’ – An ‘invitation totreat’ is where there is no such intention to be bound. Goods on display are invitations to treat, as otherwise as soon as the customer put selectedthe goods and put them in the trolley they might be regarded as accepting the offer. The customer offers to buy the goods when presenting them at the payment point, and acceptance takes place when the shop takes payment. (Pharmac