Contract law- formation
what is an offer? - answer a statement of the terms upon which a person is prepared to
be bound by a contract
who is an offeror? - answerin contract law the person who makes an offer to another
who is an offeree? - answerin contract law the person to whom an offer is made
what is an invitation to treat? - answeran indication that one person is willing to
negotiate a contract with another, but that he is not yet willing to make a legal offer
what is a unilateral contract? - answerwhere there is an obligation on one party to the
contract only, the offeror
what is a bilateral contract? - answerthis requires both the offeror and the offeree to do
something
what are the rules of law for an offer (ao1)? - answer-an offer must be definite in its
terms demonstrating that the offeror makes them with the anticipation that they might be
accepted- Harvey v Facey
-can be made by an individual, a partnership, limited company or an employee or agent
of the business, by notice or machine- Thornton v Shoe Lane Parking
-if offeree does not accept offer within appropriate time scale, the offer comes to an end
what is an invitation to treat? - answerpreparatory statements inviting a person to make
an offer
what are the rules of law for an invitation to treat? (ao1) - answer-words suggesting
uncertainty- Gibson v Manchester CC
-advertisements- usually only an invitation to treat- Partridge v Crittenden
-advertisements are usually only an invitation to treat unless the advert is a uni-lateral
offer- one made to no-one in particular- obligation is one sided eg reward poster to find
missing cat. If a person decides to accept the offer the offeror must deliver his side of
the bargain- Carlill v Carbolic Smoke Ball Co.
-goods in a shop window or on a shop shelf is an invitation to treat- Fisher v Bell
-Lots at an auction are only inviting offers, hence only an invitation to treat- British Car
Auctioneers v Wright
-a request for/supply of information eg general enquiry does not mean an offer is being
made- Harvey v Facey
, what are the rules of law for start and end of an offer? (ao1) - answer-an offer comes
into existence when it is communicated to the offeree ie. the offeree knows the
existence of the offer- Taylor v Laird
-timing is important- Stevenson v McClean
an offer can come to an end by:
-revocation- ie. withdrawal by the offeror at any time before acceptance. The offeror
must communicate the revocation to the offeree before it is effective- Routledge v Grant
-Rejection- by the offeree. It cannot be later accepted by the offeree if he changes his
mind. The rejection of the offer must be communicated to the offeror before the rejection
is effective.
-a counter offer being made constitutes rejection of an offer- Hyde v Wrench
-lapse of time- when no time is stated the time is a reasonable time and varies on the
nature of the offer- Ramsgate Victoria Hotel v Montefoire 1866
-death- if the offeree dies- the offer ends. The offeree's executors cannot accept on his
behalf. If the offeror dies, acceptance can only take place up until the offeree learns of
the offeror's death; however not if performance is impossible eg. deceased required to
do something.
how do you distinguish between a request for more info and a counter offer? - answerit
is not always easy to decide whether there has been a request for more info or a
counter offer. An argument is that a request for more information does not seem to
imply a rejection of the offer made.
what are the rules of law for acceptance? (ao1) - answer-acceptance must be of the
whole offer and all the terms in it
-accpetance must be unequivocal and communicated to the offeror- Felthouse v Bindley
-can be acceptance by positive conduct- Carlill
-if the offer states a particular manner of acceptance- which is normally required- Yates
v Pulleyn
how can acceptance take place?:
-general rule- when the acceptance is communicated to the offeror
-generally any method is acceptable- subject to a few rules:
-unless it is made clear no other method other than one expressly stated, will suffice,
acceptance must be sent by a method which is no less advantageous to the offeror-
Yates v Pulleyn
acceptance method having specific rules;
-acceptance by conduct- Reveille v Anotech 2016. A unilateral offer is accepted by
conduct- ie. carrying out the requirements of the contract- Carlill
-acceptance by post- takes place the moment the letter is posted- Adams v Lindsell.
This is as long as post is the usual means of communication/ correctly addressed and
stamped/is proof that the letter was posted. Postal rules can be expressly or impliedly
excluded- Holwell Securities v Hughes
-where an offer is made by electronic method- postal rules are excluded. If acceptance
is done by post it would only be valid upon receipt- Quenerduaine v Cole
-acceptance by electronic methods of communication- starting point and general rule is
that acceptance occurs when the offeror is made aware of the acceptance it takes effect
what is an offer? - answer a statement of the terms upon which a person is prepared to
be bound by a contract
who is an offeror? - answerin contract law the person who makes an offer to another
who is an offeree? - answerin contract law the person to whom an offer is made
what is an invitation to treat? - answeran indication that one person is willing to
negotiate a contract with another, but that he is not yet willing to make a legal offer
what is a unilateral contract? - answerwhere there is an obligation on one party to the
contract only, the offeror
what is a bilateral contract? - answerthis requires both the offeror and the offeree to do
something
what are the rules of law for an offer (ao1)? - answer-an offer must be definite in its
terms demonstrating that the offeror makes them with the anticipation that they might be
accepted- Harvey v Facey
-can be made by an individual, a partnership, limited company or an employee or agent
of the business, by notice or machine- Thornton v Shoe Lane Parking
-if offeree does not accept offer within appropriate time scale, the offer comes to an end
what is an invitation to treat? - answerpreparatory statements inviting a person to make
an offer
what are the rules of law for an invitation to treat? (ao1) - answer-words suggesting
uncertainty- Gibson v Manchester CC
-advertisements- usually only an invitation to treat- Partridge v Crittenden
-advertisements are usually only an invitation to treat unless the advert is a uni-lateral
offer- one made to no-one in particular- obligation is one sided eg reward poster to find
missing cat. If a person decides to accept the offer the offeror must deliver his side of
the bargain- Carlill v Carbolic Smoke Ball Co.
-goods in a shop window or on a shop shelf is an invitation to treat- Fisher v Bell
-Lots at an auction are only inviting offers, hence only an invitation to treat- British Car
Auctioneers v Wright
-a request for/supply of information eg general enquiry does not mean an offer is being
made- Harvey v Facey
, what are the rules of law for start and end of an offer? (ao1) - answer-an offer comes
into existence when it is communicated to the offeree ie. the offeree knows the
existence of the offer- Taylor v Laird
-timing is important- Stevenson v McClean
an offer can come to an end by:
-revocation- ie. withdrawal by the offeror at any time before acceptance. The offeror
must communicate the revocation to the offeree before it is effective- Routledge v Grant
-Rejection- by the offeree. It cannot be later accepted by the offeree if he changes his
mind. The rejection of the offer must be communicated to the offeror before the rejection
is effective.
-a counter offer being made constitutes rejection of an offer- Hyde v Wrench
-lapse of time- when no time is stated the time is a reasonable time and varies on the
nature of the offer- Ramsgate Victoria Hotel v Montefoire 1866
-death- if the offeree dies- the offer ends. The offeree's executors cannot accept on his
behalf. If the offeror dies, acceptance can only take place up until the offeree learns of
the offeror's death; however not if performance is impossible eg. deceased required to
do something.
how do you distinguish between a request for more info and a counter offer? - answerit
is not always easy to decide whether there has been a request for more info or a
counter offer. An argument is that a request for more information does not seem to
imply a rejection of the offer made.
what are the rules of law for acceptance? (ao1) - answer-acceptance must be of the
whole offer and all the terms in it
-accpetance must be unequivocal and communicated to the offeror- Felthouse v Bindley
-can be acceptance by positive conduct- Carlill
-if the offer states a particular manner of acceptance- which is normally required- Yates
v Pulleyn
how can acceptance take place?:
-general rule- when the acceptance is communicated to the offeror
-generally any method is acceptable- subject to a few rules:
-unless it is made clear no other method other than one expressly stated, will suffice,
acceptance must be sent by a method which is no less advantageous to the offeror-
Yates v Pulleyn
acceptance method having specific rules;
-acceptance by conduct- Reveille v Anotech 2016. A unilateral offer is accepted by
conduct- ie. carrying out the requirements of the contract- Carlill
-acceptance by post- takes place the moment the letter is posted- Adams v Lindsell.
This is as long as post is the usual means of communication/ correctly addressed and
stamped/is proof that the letter was posted. Postal rules can be expressly or impliedly
excluded- Holwell Securities v Hughes
-where an offer is made by electronic method- postal rules are excluded. If acceptance
is done by post it would only be valid upon receipt- Quenerduaine v Cole
-acceptance by electronic methods of communication- starting point and general rule is
that acceptance occurs when the offeror is made aware of the acceptance it takes effect
