DEFINITION OF AN OFFER
An offer is an announcement of a person’s willingness to enter into a contract, either
expressly or impliedly. The offeror is the one who makes the offer, and the offeree is the
one who receives it.
An offer cannot be vague.
Gunthing v Lynn
The offeror offered to pay a sum for a horse if it was ‘lucky’. It was held that the offer
was too vague and no contract could be formed. However, a offer may be certain if
reference to the parties’ previous dealings can be made.
Hillas & Co Ltd v Arcos Ltd
The court held that the missing terms of the agreement could be ascertained by
reference to the parties’ previous transactions.
An offer may be made to the public at large.
Carlill v Carbolic Smoke Ball Co
The defendants’ advertisement stated that if anyone used their smokeballs and still
caught flu, they would pay the person £100, and that they had deposited £1000 to prove
they are serious. Carlill used a smokeball and caught a flu. When the defendants
refused to pay, the court held that the advertisement was an offer to the general public,
which became a contract when it was accepted by Carlill using the smokeball. She was
entitled to the £100.
INVITATION TO TREAT
An invitation to treat is an attempt to stimulate the other’s interest to make an offer
without any intention to be bound. Negotiations to enter into a contract can be an
invitation to treat but not an offer.
Gibson v Manchester City Council
, Council wrote to Mr. Gibson that it may be prepared to sell the house to him for £2180.
Mr. Gibson said that the path was in a bad condition, but the Council refused to change
the price. Mr. Gibson asked the Council to carry on with the purchase, but the Council
said he could not buy it. It was held that the letter giving the purchase price was merely
a negotiation to enter into a contract, and can only amount to an invitation to treat, not
an offer.
ADVERTISEMENTS
Advertisements for unilateral contracts
Advertisements for unilateral contracts, like that in Carlill v Carbolic Smoke Ball Co, are
usually offers, as it can be accepted without any need for further negotiations.
Advertisements for bilateral contracts
Advertisements for bilateral contracts are usually invitations to treat, as it may lead to
further bargaining and that stocks could run out.
Partridge v Crittenden
A person was charged for offering for sale a wild bird under the Protection of Birds Act
1954, but his conviction was quashed on the grounds that the advertisement was not an
offer, but an invitation to treat.
Grainger & Sons v Gough
It was held that the circulation of a price-list by a wine merchant was not an offer to sell
at those prices, but an invitation to treat.
DISPLAY OF GOODS WITH PRICE TAG
Display of goods with price tag is usually an invitation to treat.
Fisher v Bell
The defendant had displayed flick knives in his shop window. His conviction of offering
such knives for sale was overturned, as the display of an article with a price in a shop
window was only an invitation to treat.
An offer is an announcement of a person’s willingness to enter into a contract, either
expressly or impliedly. The offeror is the one who makes the offer, and the offeree is the
one who receives it.
An offer cannot be vague.
Gunthing v Lynn
The offeror offered to pay a sum for a horse if it was ‘lucky’. It was held that the offer
was too vague and no contract could be formed. However, a offer may be certain if
reference to the parties’ previous dealings can be made.
Hillas & Co Ltd v Arcos Ltd
The court held that the missing terms of the agreement could be ascertained by
reference to the parties’ previous transactions.
An offer may be made to the public at large.
Carlill v Carbolic Smoke Ball Co
The defendants’ advertisement stated that if anyone used their smokeballs and still
caught flu, they would pay the person £100, and that they had deposited £1000 to prove
they are serious. Carlill used a smokeball and caught a flu. When the defendants
refused to pay, the court held that the advertisement was an offer to the general public,
which became a contract when it was accepted by Carlill using the smokeball. She was
entitled to the £100.
INVITATION TO TREAT
An invitation to treat is an attempt to stimulate the other’s interest to make an offer
without any intention to be bound. Negotiations to enter into a contract can be an
invitation to treat but not an offer.
Gibson v Manchester City Council
, Council wrote to Mr. Gibson that it may be prepared to sell the house to him for £2180.
Mr. Gibson said that the path was in a bad condition, but the Council refused to change
the price. Mr. Gibson asked the Council to carry on with the purchase, but the Council
said he could not buy it. It was held that the letter giving the purchase price was merely
a negotiation to enter into a contract, and can only amount to an invitation to treat, not
an offer.
ADVERTISEMENTS
Advertisements for unilateral contracts
Advertisements for unilateral contracts, like that in Carlill v Carbolic Smoke Ball Co, are
usually offers, as it can be accepted without any need for further negotiations.
Advertisements for bilateral contracts
Advertisements for bilateral contracts are usually invitations to treat, as it may lead to
further bargaining and that stocks could run out.
Partridge v Crittenden
A person was charged for offering for sale a wild bird under the Protection of Birds Act
1954, but his conviction was quashed on the grounds that the advertisement was not an
offer, but an invitation to treat.
Grainger & Sons v Gough
It was held that the circulation of a price-list by a wine merchant was not an offer to sell
at those prices, but an invitation to treat.
DISPLAY OF GOODS WITH PRICE TAG
Display of goods with price tag is usually an invitation to treat.
Fisher v Bell
The defendant had displayed flick knives in his shop window. His conviction of offering
such knives for sale was overturned, as the display of an article with a price in a shop
window was only an invitation to treat.
