OFFER AND ACCEPTANCE

 OFFER AND ACCEPTANCE:

OFFER: (certainty)

Offer is statement by one party, of the willingness to enter into a contract. On stated terms provided, that these terms are, accepted by the other party. It can be made orally, written or by conduct. The is no ambiguity or uncertainty and the intention is clear then that is an offer. OFEROR WHO GIVES. ACCEPTANCE DONE BY OFERRE.

Invitation to treat: (uncertainty)

It is an expression of willingness to enter into negotiations which will lead to a contract at a later day. It is not an offer and it cannot be accepted, when there is uncertainty, this will be considered a invitation to treat. WORDS DEFINING UNCERTAINITY, THIS WILL BE THEN INVITATION TO TREAT.

• MAYBE

• AROUND

• MIGHT

Offer and invitation to treat, difference.

• CASE (LEFKOWITZ V GREAT MINNEAPOLIS)

THE DIFFERENCE BETWEEN OFFER AND INVITATION TO TREAT IS THAT OF INTENTION AND CERTAINITY.

• CASE (GIBSON V MANCHESTER CITY COUNCIL) COUNCIL LOOKS AFTER AN AREA, IT IS A LOCAL BODY.

HOL HELD THAT NO CONTRACT HAD BEEN CONCLUDED AS THE LETTER WRITTEN BY THE TREASURER, STATED THAT THE COUNCIL MAY BE PREPARED TO SELL THE HOUSE, WAS NOT AN OFFER BUT AN INVITATION TO TREAT.

• CASE (STORER V MANCHESTER CITY COUNCIL)

THE COURTS HELD THAT THE CONTRACT HAD BEEN CONCLUDED WHERE THE NEGOTIATIONS HAD ADVANCE THE STAGE REACHED IN GIBSON.

FOUR SITUATIONS WHEN IT WILL ALWAYS BE AN INVITATION TO TREAT

1. Display of Goods, INVITATION TO TREAT IS A THREE STEP PROCEDURE 1 INVITATION, 2 OFFER, 3 ACCEPTANCE OR REJECTION

• CASE (FISHER V BELL) DISPLAY OF GOODS IN A SHOP IS AN INVITATION TO TREAT RATHER THAN OFFER AS WAS IN THIS CASE FLICK-KNIFE WAS AN INVITATION TO TREAT

• CASE (PHARMACEUTICAL SOCIETY OF GREAT BRITAIN V BOOTH CASH)

IT WAS HELD THAT THE SALE TO PLACE AT THE CASH DESK AND NOT WHEN THE GOODS WERE TAKEN OFF THE SHELF HENCE DISPLAY OF GOODS IS AN INVITATION TO TREAT.

2. ADVERTISEMENT

GENERAL RULE IS THAT ADVERTISEMENTS ARE CONSIDERED AS INVITATION TO TREAT

• CASE (CARTRIDGE V PRITTENDON)

GENERAL RULE: LORD PARKER STATED THAT IN SUCH PROCEEDED AND OFFER THEN THE SHOPKEEPER WOULD BE BOUND TO SELL, MORE THAN HE ACTUALLY OWNED.

EXCEPTION: CASE (CARLIL V CARBOLIC SMOKE BALL) THE KIND OF NEWSPAPER ADVERTISEMENT THAT REQUIRES PERFORMANCE IT IS NOT INVITATION TO TREAT BUT AN OFFER. THE AD IN THE NEWSPAPER IS A UNILATERAL OFFER. IMPORTANCE.

Advertisements can amount to unilateral offer and in this case the court held that the advertisement was an offer as it stated that anyone who used the medicine in the correct manner could claim the reward of 100 pounds there was further evidence that the defendant had deposited 1000 pounds in the bank to show thir good faith.

UNILATERAL OFFER

IT IS MADE TO THE WORLD AT LARGE AND IT OFTEN REQUIRES SOME SORT OF PERFORMANCE.

3. AUCTION SALE 

THE GENERAL RULE IS THAT AN AUCTIONAIRE BY INVITING BID MAKES AN INVITATION TO TREAT. THE OFFER IS MADE BY THE BIDDER WHICH IN TURN IS ACCEPTED BY THE AUCTIONAIRE WHEN HE STRIKES WITH HIS HAMMER. Case ( BRITISH CAR AUCTION LIMITED V WRIGHT)

Case ( HARRIS V NICKERSON):

THE ADVERTISEMENT OF AN AUCTION SALE IS ALSO AN INVITATION TO TREAT

4. TENDER

ONE WHO CALLS THE TENDER THEY INVITE. AS A GENERAL RULE AN INVITATION TO TENDER IS AN INVITATION TO TREAT. THE OFFER IS MADE BY THE PERSON WHO SUBMITS THE TENDER AND ACCEPTANCE IS MADE BY THE PARTY INVITING THE TENDER. Case ( HARVELA INVESTMENT LTD V ROYAL TRUST COMPANY OF CANADA LTD)

ACCEPTANCE:

AN ACCEPTANCE IS AN UNQUALIFIED EXPRESSION OF ASSENT TO THE TERMS PROPOSED BY THE OFFER. IT CAN BE DONE BY WORDS, ACTION OR CONDUCT. ACCEPTANCE IS ONLY DONE WHEN IT IS COMMUNICATED

• case STEVENSON JACQUES AND COMPANY V MCLEAN WHERE THE OFERREE QUERY THE OFFER AND SEEK MORE INFORMATION THIS IS NEITHER ACCEPTANCE NOR REJECTION THE ORIGINAL OFFER STILL STANDS

• Case (HYDE V WRENCH) COUNTER OFFER INVALIDATES THE ORIGINAL OFFER.

1ST invite

2ND you offer 

3RD acceptance

These are the stages of invitation to treat.

8 questions…no questions…must prepare 6…got 4 to attempt….will leave 1 topic only…..

Lecture number 2

Any offer and acceptance is based on the mirror principle. Taking information is neither acceptance and nor rejection.

• CASE LAW (Stevenson Jacques and company v Mclean) where the offeree query the offer and seeks more information this is neither acceptance or rejection and the original offer stands.

• CASE LAW (Hyde v Wrench) counter offer principle, and acceptance which does not accept all the terms and conditions proposed by the offeror but in fact, introduces new terms is not an acceptance but a counter offer. Which can be accepted or rejected. This kills the original offer.

• CASE LAW (Butler v Expel-o- corporation) Battle of forms, last offer is valid and rest of them are invalid. Where there is a battle of forms (offer on an offer on and offer) whereby each party submits their own terms the last shot rule applies

COMMUNICATION OF ACCEPTANCE:

OFFERREE NE COMMUNICATE KRNA HAI OFFEROR KO KE OSNE ACCEPT KRLI HAI OFFER.

The general rule is that acceptance must be communicated by the offeree to the offeror. It must be brought to the attention of the offeror. Offeror is the one who makes the offer and offeree is the one who makes the acceptance by communicating it.

• (Entores v Miles far corporation), Lord Denning stated that if an oral acceptance is going on and an aircraft flies by which hinder the communication of acceptance the offeree needs to repeat his acceptance until it is properly communicated to the offeror. Similarly, two people contracting by telephone and the line goes dead or there is distortion, the offeree needs to repeat his acceptance properly by calling back.

• (Brinkibon limited v Steahag), Once the telex is received it is the offeror’s responsibility to handle it promptly(properly) an offeror would not know that a failed attempt has been made by the offeree, but it becomes the responsibility on the offeree to communicate his acceptance properly. Ager offerree ne 2 din acceptance nai dekhi kisi cheez ki aur who cheez kaheen aur beich deta hai toho ska breach hoga.

Prescribed method of acceptance:

The general rule is that offeree can use any mode of communication but if a method is prescribed the offeree is supposed to use that particular method or a better one. (Manchester diocesean council for education v commercial and general investment ltd)

ACCEPTANCE BY SILENCE:

• (Felthouse v Bindley), the court held that the nephew had not communicated the acceptance to uncle’s offer and thus silence does not constitute acceptance. EXCEPTION (RUS V ABBEY LIFE INSURANCE), show off……silence can constitute acceptance when this does not involve forcing a contract upon an unwilling party.

POSTAL RULE:

This is an exception to the gr,that acceptance needs to be communicated.

• ADAMS V LINDSELL), If post is the proper method to comunicate acceptance then acceptance is deemed complete, as soon as the letter of acceptance is posted by the offeree

• Henthorn v Fraser), Lord Herschell stated that postal rule applies only where it is reasonable to use post and it is reasonable when the parties live at a distance to each other 

• (Household fire Insurance v Grant), it was stated that if the letter of acceptance is lost the contract is still concluded. If the address written is wrong the contract is not concluded. If the letter of acceptance is sent by post but rejection is sent by a faster mode the contract is still conluded.

• LJ Korbetis v Transgrain shipping, postal rule does not operate where a letter is wrongly addressed

• Holwell curity v Hughes, the postal rule will not operate where the offeror did not intend that it should apply

• Thomas v BTE Solicitors, Blaire J stated that postal should not apply to contract concluded through exchange of email.

ACCEPTANCE IN UNILATERAL CONTRACT:

Contract law lecture 3

Unilateral contract is a contract in which performance is required.

• Errington v Errington, father bought house took 500 pound mortgage, father asked son to pay the installments, the court of appeal held that the father’s promise was a unilateral offer which could not be revocked once the couple had embarked, provided they did not leave the performance incomplete and unperformed. EXCEPTION offer can not be revocked once the performance has been started

• EXCEPTION Luxor v Cooper, The HOL held that the offeror is free to revoke the offer even after the performance had begun, if a very large amount of consideration was being offered for a small amount of work. 

ACCEPTANCE BY IGNORANCE OF OFFER: 

If you didn’t know about the offer at the time of acceptance then you shall not get the reward. (mirror effect)

• The general rule is that a person in ignorance of the offer performing the act is not entitled to the reward as there is not meeting of the minds.

• R v Clarke, where the party claiming the reward had forgotten about the offer reward, at the time he gave the information it was held that he was not entitled to the reward.

• Gibbons v Proctor, when the police officer passed the information, the plaintiff was already aware of the reward being offered thus was successful in claiming the reward

TERMINATION OF THE OFFER:

1) An offer can be withdrawn by the offeror at any time before acceptance, and you must inform the offeree that you are taking back your offer.

• Roudledge v Grant, to withdraw an offer notice of withdrawal must be brought to the attention of the offeree

• Dickinson v Dodds, notice of withdrawal can also be effective if informed by a reliable third party

• Shuey v USA, revocation may be effective if it is done through the same medium as original offer. 

Revokation will be before the acceptance to the offer and a notice must be given first and then through the same medium the offer was made with.

• Brimnes, there is no requirement that withdrawal actually be read by any particular person within the organization and it will be effective if sent within ordinary business hours. The postal rule does not apply to the withdrawal of the offer. 2) An offer can be terminated by rejection or counter offer. 3) An offer can be terminated through lapse of time (Ramsgate Victoria Hotel v Montefiore). 4) An offer can come to an end upon the end of a specific event. 5) An offer can be terminated if the offeror dies 

ALL OF THIS HAPPENS BEFORE THE ACCEPTANCE