CONTRACT: Offer & Acceptance

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  • Created by: em.101
  • Created on: 13-09-17 20:05
General offer?
Unilateral Contact
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Specific offer?
Bilateral contract
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Unilateral
to the world
3 of 73
Bilateral
to an individual
4 of 73
Two part contract
offer & acceptance
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Three part contract
invitation & offer & acceptance
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who makes the offer?
the offeror
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who accepts the offer?
the offeree
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Harvey v Facey (pen case)
in order for a statement to be an "offer to sell", the offeror must have INTENTION TO BE BOUND
9 of 73
Offer to sell
you are obliged to follow the terms of the contract
10 of 73
Invitation to treat
you are inviting people to make you an offer and therefore reserve the right to reject/ accept contract
11 of 73
Mirror image rule
the terms from both parties must be exactly the same
12 of 73
meeting of the minds rule
both parties should have intention to be bound and know the consequences if they don't follow through
13 of 73
Hyde v Wrench (symmetry)
supports the mirror image rule
14 of 73
Carlill's Case (flu remedy)
UNILATERAL. Exception: adverts are invitations to treat
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Examples of invitations to treat (not offers to sell!) (4)
(1) goods on display / (2) auctions with reserve / (3) advertisements / (4) tenders
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Timothy v Simpson (shop window) -confirmed in fisher v bell
display of goods in a shop is an invitation to treat
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Fisher v Bell (knife)
display of goods in a shop is an invitation to treat
18 of 73
Boots v Pharmaceutical Society of GB (drugs)
invitation to treat rule was applied to supermarkets
19 of 73
Partridge v Crittenden (bird case)
An advert is an invitation to treat
20 of 73
Lefkowitz v Great Minneapolis Stores (fur coat case)
shows the exception to the rule that adverts are merely invitations. They can be offers to sell if all terms are included in the advert and all that had to occur was performance
21 of 73
Storer v Manchester City Council 1974 (council houses 1)
definite language was used and the contract showed a clear "meeting of the minds"
22 of 73
Gibson v Manchester City Council 1979 (council houses 2)
the contract was open to negotiation therefore was held to be an INVITATION TO TREAT
23 of 73
Spencer v Harding (highest offer)
created the rule that tender is an invitation to treat (unless it specifies they will accept the highest/ lowest offer)
24 of 73
Harris v Nickerson (travel to auction)
the ADVERT to an auction was an invitation to treat, therefore court action failed
25 of 73
Ball v Barry (machines)
Auctions without reserve: offer to sell is made by becoming the highest bidder
26 of 73
Sale of Goods Act 1979 (auctions)
(1) ad& display of goods= invitation (2) hammer= acceptance: can withdraw before it falls
27 of 73
Payne v Cave (auction display)
display of goods is an invitation to treat
28 of 73
Warlow v Harrison (the owner)
when the hammer falls, there is a legal contract between the highest bidder and the owner. Owner was highest bidder so there was no contract
29 of 73
Thornton v Shoe Lane Parking (car park machine)
An machine is an offer to sell, not an invitation (as machines lack the capacity to negotiate). Clause can't be incorporated after a contact has been concluded
30 of 73
Termination of offer mnemonic (9 letters)
Little Boys Don't Really Care About Flipping Red Roses
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Reasons for the Termination of an Offer (9)
Lapse of Time // Battle of Forms // Death // Revocation // Counter Offer // Acceptance // Failure of Precondition // Refusal // Request for further Info
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Revocation
taking back an offer
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(failure of) Precondition
something occurs which causes the contract to end (e.g. car is stolen after offer)
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Bradbury v Morgan (loaner died)
Death of offeror/ offeree will end a contract
35 of 73
Ramsgate Hotel v Montefiore (selling shares)
Contracts will end if reasonable time has lapsed
36 of 73
Byrne v Van Tienhoven (letter sent: sale of items)
A contract is accepted at the point of postage. A contract is revocated when the letter is recieved.
37 of 73
Postage Rule
Acceptance of a contract occurs at the point of postage
38 of 73
Confetti v Warner (making album from their music)
Confetti's request to REVOCATE (terminate) the contract came too late.
39 of 73
Dickinson v Dodds (house sold to someone else)
Revocation notice can come from a third party, providing that they are a reliable source.
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Errington v Errington (mortgage case)
You cannot withdraw an offer (REVOCATION) on an ongoing contract
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Dahlia v Four Millbank: Lord Justice Goffman QUOTE (on-going contracts)
"once the offeree has embarked on performance, it is too late for the offeror to revoke his offer"
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Hyde v Wrench (farm price)
Counter- offer will end a contract
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Pickfords v Celestica (lorry rental pricing)
Giving a second offer will cancel the first (and entire contract), as it is seen as a COUNTER OFFER
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Battle of the Forms QUOTE
"he who fires the last shot wins"
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Communication of Acceptance rule
the offeror must receive the acceptance before it forms a binding contract
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No prescribed method of communication
When the offeror doesn't specify the method of communication required in order for the offeree to accept, acceptance must be given using the SAME METHOD as the offeror.
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Felthouse v Bindley
Silence does not amount to acceptance
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Brogden v Metropolitan Railiway
Acceptance can be through conduct- a certain act. (even if there's silence)
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Ignorance of an Offer
If someone knows about an offer, it doesn't matter if acceptance is performed FOR a motive other than gaining the ORIGINAL AWARD
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What are the requirements of a contract?
Agreement, Consideration, Intention to create legal relations
51 of 73
Mere Puff
Extravagant "sales talk"
52 of 73
Stevenson v McLean (selling iron)
A request for further information does not count as a counter offer, so still forms a valid contract
53 of 73
Butler v Ex- Cell- O Cop (firing the last shot)
BATTLE OF THE FORMS: party getting their terms in last
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Battle of the forms definition
Last party to introduce terms in a document- BEFORE they shake hands
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(failure of) Precondition DEFINITION
(a change to) Any existing knowledge/ understanding
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Financings v Stimson (car stolen)
Precondition of the car had failed, so did not form a valid contract
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5 Markers Structure? (5)
(1) RULE (invitation/ offer?) (2) EXCEPTION (+revocation) (3) IS THERE OFFER/ ACCEPTANCE? (4) APPLY IT (5) IS STATEMENT TRUE/ FALSE?
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3 main rules for Acceptance?
(1) Communication (2) Terms (3) Certainty
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Entorres v Miles far East (Holland to England)
Acceptance must be sent using appropriate communication
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Yates v Pulleyn (recorded delivery case)
Acceptance must follow the offeror's stipulation. This can be argued when the offeror only SUGGESTS a method
61 of 73
Felthouse v Bindley (horse case)
Silence does not amount to acceptance
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Brogden v Metropolitan Railway (supplying coal)
Acceptance can occur through conduct
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Adams v Lindsell (wool letter in post)
Created the postal rule
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Henthorn v Fraser (withdrawing house offer)
Follows ADAMS v LINDSELL: postage rule
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Hollwell Securities v Hughes (terms for post)
POSTAL RULE can be excluded if terms are included within the contract.
66 of 73
Household Insurance v Grant (letter didn't come)
Acceptance still occurs even if it didn't arrive. HOWEVER this doesn't count if the delivery address was wrong.
67 of 73
London and Northern Bank (incorrect posting)
FOLLOWS HOUSEHOLD INSURANCE v GRANT. Also, postage rule does not stand if you use the WRONG STAMP.
68 of 73
Quenerduaine v Cole (instant telegram)
Postal rule doesn't apply if offer was sent by instant means
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Scammell & Nephew v Ouston (van mirror)
Contract not binding as the terms were not agreed in an effective mirror image
70 of 73
Sudbrook Trading v Eggleton (surveyor not supplied)
(terms+ mirror image) Clause was "too vague" to be enforceable
71 of 73
Williams v Carwardine (reward yes)
In order to accept the offer, you must be aware of it (D got reward)
72 of 73
R v Clarke (reward no)
You can't claim for reward if you didn't know about the offer (D didn't get reward)
73 of 73

Other cards in this set

Card 2

Front

Bilateral contract

Back

Specific offer?

Card 3

Front

to the world

Back

Preview of the back of card 3

Card 4

Front

to an individual

Back

Preview of the back of card 4

Card 5

Front

offer & acceptance

Back

Preview of the back of card 5
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