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44 Cards in this Set
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Definition of offer
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Expression of willingness to contract on certain terms, made with intention that it shall become binding as soon as accepted by person to whom it is addressed - Professor Treitel
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Court adopts primarily objective approach to existence of an agreement
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Smith v Hughes (1871)
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Subjective element of offeree’s belief that conduct of offeror represents their intention
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Goff LJ in Allied Marine Transport v Vale do Rio Doce Navegacao SA (The Leonidas) [1985]
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Goods on display in supermarkets and self service shops generally invitations to treat
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Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953]
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Display in shop window is invitation to treat
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Fisher v Bell [1961] - flick knife
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Advertisements generally regarded as invitations to treat
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Partridge v Crittenden [1968] - live wild bird
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Advertisement of a reward traditionally seen as offer |
William v Carwardine (1833) |
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Certain adverts are treated as offers, can waive need for communication of accepting
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Carlill v Carbolic Smoke Ball Company (1892)
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Sale by auction is complete on fall of auctioneer’s hammer (acceptance)
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s57(2) of Sale of goods Act 1979
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Where no reserve price given, auctioneer can be liable for refusing to sell
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Barry v Davies (ta Heathcote Ball & Co) [2000]
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There are certain situations where invitations to tender constitute an offer
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Harvela Investments Ltd v Royal Trust Company of Canada Ltd [1986] - highest fixed
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Invitations to tender can constitute offer to choose fairly - letterbox emptying
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Blackpool & Flyde Aero Club Ltd v Blackpool Borough Council [1990]
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Promise to keep offer open for certain period of time usually not binding
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Routledge v Grant (1828) - not binding if gratuitous
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Promise to keep offer open for certain period is binding if consideration given
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Mountford v Scott [1975] - £1
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Revocation must be communicated to the offeree to be effective
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Byrne & Co v Van Tienhoven & Co (1880)
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Exceptions to general rule for communication of revocation
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Professor Treitel: wrong address, offeree chooses not to read
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To revoke offer to public, must publish sufficiently prominent notice
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US case of Shuey v United States (1875)
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For notice of revocation to a business, reasonable expectation of reading
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The Brimnes [1975] - office hours
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Revocation may be communicated by reliable third party
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Dickinson v Dodds (1876)
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Sometimes an implied promise in unilateral contract not to revoke after beginning
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Errington v Errington and Woods [1952] - father’s widow, mortgage
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Counter offer is an implied rejection of initial offer
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Hyde v Wrench (1840)
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Simple request for information does not affect offer or acceptance
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Stevenson Jacques and Co v McLean (1880)
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Definition of acceptance
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Professor Treitel: final and unqualified expression of assent to terms of offer
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Not knowing about offer (cannot accept) includes forgetfulness
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Australian case of R v Clarke (1927) - unable to claim reward
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Mixed motives do not preclude acceptance of an offer
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Williams v Carwardine (1833)
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Prevail clause in battle of the forms irrelevant if not included in last shot
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Butler Machine Tool Co [1979]
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Where no signature necessary, performance of act likely to be acceptance by conduct of last set of standard terms to be proffered
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Brogden v Metropolitan Railway Co (1877)
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For hire purchase agreement, absence of important details may make unenforceable
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Scammell v Ouston [1941] - too vague (can give content to other vague bits)
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General rule that acceptance must be communicated
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Enstores Ltd v Miles Far East Corp [1955]
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Acceptance can be communicated either by offeree or duly authorised agent
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Powell v Lee (1908)
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Possible for offeror to waive need for communication of acceptance
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Carlill v Carbolic Smoke Ball Co [1893]
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Offeror cannot impose contract on offeree by stipulating silence is acceptance |
Felthouse v Bindley (1862) |
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Nothing wrong in principle with offeror binding themselves by silence
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Court of Appeal in Re Selectmove Ltd [1995]
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Letter of acceptance which is posted is complete on posting
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Adams v Lindsell (1818) - contract formed at that point
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Postal rule applies even where acceptance never arrived
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Household Fire and Carriage Accident Insurance v Grant (1879)
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Must be reasonable for acceptance to be sent by post
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Thesiger LJ in Household Fire and Carriage Accident Insurance v Grant (1879)
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Possible to exclude the postal rule
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Holwell Securities Ltd v Hughes [1974] - stipulating need for notice
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With faster methods of communication, point of acceptance dependent on intentions of parties
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Brinkibon [1983]
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Elderly residents promising young couple leaving house and contents to them
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Intention (couple sold houses to care) - Parker v Clark [1960]
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Workmates buying lottery tickets together (alternating each week)
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Intention to create relations- Simpkins v Pays [1955]
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In domestic and social agreements, presumption of no intention to create
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Balfour v Balfour [1919] - no consideration
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If couple are separated, presumption is likely to be rebutted
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Merritt v Merritt [1970] - also formal agreement as rebuttal
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In commercial situations, presumption that parties intended legally binding
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Edwards v Skyways [1964]
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Presumption in commercial situations can be rebutted by clear words
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Rose and Frank Co v Crompton Bros [1925]
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