Agreement (Offer and Acceptance)

  • Created by: huth0
  • Created on: 19-02-17 23:46
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  • Agreement
    • Offer
      • Definition: When the offeror unequivocally expresses to the offeree his willingness to make a binding agreement on the terms he has specified if they are accepted by the offeree
      • 1. The form is not generally important
      • 2. It must be communicated to the offeree
      • 3. It must be distinguished from 'invitations to treat'
      • Invitation to Treat
        • Concerned with an ongoing negotiation
        • Advertisement
          • Partridge v Crittenden 1968
        • Display of goods in shop
          • Fisher v Bell 1961
            • Boots v Pharmaceutical Society of Great Britain 1953
      • Offers can be made to one or more person(s)
        • Carlill v Carbolic Smoke Ball Co 1893
          • 'unilateral' offer
            • Unilateral contracts provide exceptions to certain rules:
              • Acceptance need NOT be communicated (accepted by conduct)
              • Revocation need not be communicated to everyone who received the offer
                • If offer made to the world then it may be revoked before performance has begun by taking reasonable steps to notify the offerees
                  • Errington v Errington 1952
    • Acceptance
      • "...a final and unqualified expression of assent to the terms of an offer."
      • The party accepting must know of the offer at the time he accpets
      • Only offeree can accept offer
      • Acceptance must match the offer exactly
      • 'Counter-Offer'
        • Offeree attempts to introduce new terms or conditions to the original offer
          • Hyde v Wrench 1840
      • Must be communicated to the offeror
        • Silence is not acceptance.
          • "If I hear no more from you then I will assume that you have accepted" - Felthouse v Bindley 1862
      • Must be in form stipulated by the offeror if made clear this is essential
      • Postal Rule
        • Offer made by post is only valid when it is recieved
        • Revocation of an offer by post is only valid when it is received
          • Acceptance of an offer by post is valid when it is received
            • It must be reasonable to use the post and the letter must be validly stamped and correctly addressed
              • Adams v Lindsell 1818
      • Instantaneous means of communication such as face to face or telephone use the general rule - i.e. valid when received
        • Entores v Miles Far East Corporation 1955
    • Withdrawal or Revocation
      • The offeror may withdraw or revoke the offer at any time before acceptance
        • Byrne v Van Tienhoven 1880
      • However, to be effective this must be brought to the offerees attention, not necessarily by the offeror
        • Pickfords v Celestica Ltd 2003
      • Rejection or Counter-Offer
        • This destroys the original offer
          • Hyde v Wrench 1840
        • Lapse of Time
          • A time may be specified in the offer by which it must be accepted before terminated. Otherwise an offer lapses by a reasonable time
            • Ramsgate Victoria Hotel v Montefiore 1866
          • Death may end the offer - depending on the circumstances, who has died and what was being offered


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