Contract+ Legally Binding Agreement
Offer + Acceptance = Agreement
Offer= Treitel “An expression of willingness to contract on certain terms, made with the
intention that it shall become binding as soon as it is accepted by the person to
whom it is addressed”
Notes: Promise to be bound may be oral or in writing, Terms must be sufficiently
definite, must be intended to create a binding contract, must be capable of being
accepted without further negotiations and can be made to a specific person or a class
of persons of the whole world.
Offeror- Makes the offer
Offeree- to whom the offer is made to
Distinction between Offer and Invitation to treat
Did the maker of the statement intend to be bound by an acceptance of the terms
without further negotiation? - Valid Offer
Did the maker of the statement only intend his statement to be part of the continuing
negotiation process?- Invitation to Treat
E.g. Harvey v Facey 1983
Displays of Goods in a shop
General Rule: display of goods is an invitation to treat; Pharmaceutical society of CB v
Boots Cash Chemists 1963, Fisher v Bell 1961
Advertisements
, General Rule: newspaper advertisement= invitation to treat- Partridge v Crittenden 1968
Another Exception- Unilateral Offers
If the advertisement indicates a course of action or condition for which the advertiser
makes a promise to pay- bound by promise: Carbolic v The Carbolic Smokeball Co
Ltd 1893
Adverts for rewards= offer as long as there is an intention to be bound as soon as
info is provided but there must be knowledge of offer: Williams v Carwardine 1833; R
v Clarke
Mechanical Transactions: Thornton v Shoe Lane Parking Ltd 1971; Chapelton v Barry
UDC 1940
Auctions
General Rule: When an auctioneer invited bids to be made= invitation to Treat.Offer=
bid; Acceptance = fail of the hammer
Auction “without reserve”- Auctioneer undertake to sell to the highest bidder
Auction “with reserve”- Auctioneer will not accept bid below reserved price set by
owner of goods
Advertisement to say that an auction will take place on a certain day= invitation to
treat- Harris v Nickerson 1873
Tender
General Rule: The call for tenders= invitation to treat
Offer is made by the person who submits tender
Offer + Acceptance = Agreement
Offer= Treitel “An expression of willingness to contract on certain terms, made with the
intention that it shall become binding as soon as it is accepted by the person to
whom it is addressed”
Notes: Promise to be bound may be oral or in writing, Terms must be sufficiently
definite, must be intended to create a binding contract, must be capable of being
accepted without further negotiations and can be made to a specific person or a class
of persons of the whole world.
Offeror- Makes the offer
Offeree- to whom the offer is made to
Distinction between Offer and Invitation to treat
Did the maker of the statement intend to be bound by an acceptance of the terms
without further negotiation? - Valid Offer
Did the maker of the statement only intend his statement to be part of the continuing
negotiation process?- Invitation to Treat
E.g. Harvey v Facey 1983
Displays of Goods in a shop
General Rule: display of goods is an invitation to treat; Pharmaceutical society of CB v
Boots Cash Chemists 1963, Fisher v Bell 1961
Advertisements
, General Rule: newspaper advertisement= invitation to treat- Partridge v Crittenden 1968
Another Exception- Unilateral Offers
If the advertisement indicates a course of action or condition for which the advertiser
makes a promise to pay- bound by promise: Carbolic v The Carbolic Smokeball Co
Ltd 1893
Adverts for rewards= offer as long as there is an intention to be bound as soon as
info is provided but there must be knowledge of offer: Williams v Carwardine 1833; R
v Clarke
Mechanical Transactions: Thornton v Shoe Lane Parking Ltd 1971; Chapelton v Barry
UDC 1940
Auctions
General Rule: When an auctioneer invited bids to be made= invitation to Treat.Offer=
bid; Acceptance = fail of the hammer
Auction “without reserve”- Auctioneer undertake to sell to the highest bidder
Auction “with reserve”- Auctioneer will not accept bid below reserved price set by
owner of goods
Advertisement to say that an auction will take place on a certain day= invitation to
treat- Harris v Nickerson 1873
Tender
General Rule: The call for tenders= invitation to treat
Offer is made by the person who submits tender
