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9 Cards in this Set
- Front
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How do the court establish an agreement ? |
An objective approach is used. It establishes two factual indicators, an offer and acceptance. R T S Flexible Systems Ltd v Molkerei Alois Muller GmbH and Co KH 2010 and Fordell Estate v Deloitte LLp 2014. A relaxed aproach was favored by Lord Denning in Butler Machine Tool Co v Ex-Cell- O Corporation (England) 1979 and Gibson v Manchester City Council 1979 which has been rejected. |
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What is an Offer ? |
An offer is a willingness to contract on certain terms which the offeror is willing to be bound by. Offers must be certain (Fordell Estates v Deloitte LLP 2014). Contract Fails if not ( Scammell & Nephew Ltd v Ouston 1941). Uncertainty over part of a contract may allow it to continue. (Nicolene Ltd v Simmonds 1953). Offers and ambiguity is shown in Hillas Ltd v Arcos Ltd 1932 and Foley v Classique Coached Ltd 1934. Compare this approach to Baird Textile Holdings Ltd v Marks and Spencer PLC 2001. |
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What is the difference between Unilatteral and Bilatteral Offers? |
A Unilatteral offer is one-sided. It offers a price/reward if an action is completed. The offeror cannot know if it will be accepted. A billateral offer exchanges promises between the parties and gives rise to obligations for both parties. |
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How can an offer be made ? |
An offer is made in writing, orally or in conduct. They're made to an individual, a group, or to the world in general. Carlill v Carbolic Smoke Ball Co Ltd 1893. For the offer to be valid the offeree must have knowledge of the offer. Taylor v Laird 1856. |
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Distinguish between an offer and an Invitation to treat. |
An offer is the expression of terms that the party is willing to be bound by. An invitiation to treat however is merely a request for others to make an offer and cannot be accepted.
Examples of an invitiation to treat:
Advertisement of Goods - Partridge v Crittenden 1968
Sales of goods at auction - British Car Auctions v Wright 1972 unless made without reserve Warlow v Harrison 1859.
Request for tenders - Spencer v Harding 1870. Unless a promise is made to accept the best bid Harvela Investments Ltd v Royal Trust Co of Canada 1986 Display of Goods for Sale - Fisher v Bell 1960, Pharmaceutical Society of Grat Britain v Boots Cash Chemists 1953 Statements of Price - Clifton v Palumbo 1944 and Gibson v Manchester City Council 1944. |
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How to end an offer. |
Revocation - Offer can be withdrawn before accepted. Payne v Cave 1789. Revocation must reach the offeree, Can be through a reliable third party. Dickinson v Dodds 1876. Postal rule does not apply to revocation, letter of revocation not effective till received. Byrne v Van Tienhoven 1880 Rejection - An offer ends when it is rejected. A counter- offer also has the effect of terminating the first offer. Hyde v Wrench 1840. Must be distinguised from a mere request for information, Stevenson Jacques and Co v McLean 1880. Battle of the forms - Last set of terms " wins". Butler Machine Tool Co v Ex-Cell-O Corporations England Ltd 1979 If the offeror makes a significantly different offer to the same offeree, it implies withdrawal of the first offer. Pickfords Ltd v Celestica Ltd 2003. Lapse of Time - If a specified period of time or a reasonable time passes by, Ramsgate Victoria Hotel v Montefiore 1866 |
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What is Acceptance ? |
Acceptance is the final and unconditional assent of the terms by the offeree. Acceptance must meet the terms exactly, or be of a mirror image ( the mirror image rule), which is evidence of consensus ad idem. Acceptance can be expressed in writing, orally or in conduct. |
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Communication of Acceptance |
Acceptance must be communicated to the offeror. Entores v Miles Far East Corporation 1955. Silence does not constitute acceptance. Felthouse v Bindley 1862. If a specific method of communication is stipulated it should be used. Eliason v henshaw 1819. However any variation that does not prejudice the other party is likely acceptable. Yates Building Co Ltd v R J Pulleyn and Sons York Ltd 1975. |
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Exceptions to the General rule on communication. |
If acceptance is made by conduct it does not need to be communicated. Brogden v Metropolitan Railway 1877 and Pickfords Ltd v Celestica Ltd 2003.
If the offer is unilateral then performance of the perscribed act is acceptance. Carlill v Carbolic Smoke Ball Co Ltd 1893.
Acceptance by Post - Postal rule established in Adams v Lindsell 1818 and applied in Household Fire Insurance v Grant 1879. Acceptance occurs on posting, it does not have to be delivered . Only applies where posting is an appropriate method to use and where the letter has been correctly addressed stamped and posted. Holwell Securities Ltd v Hughes 1974.
Whether postal acceptance can be rejected or revoked before it is received is unresolved in english law. Scottish law suggests it can. Dunmore v Alexander 1830.
Acceptance by modern methods of communication - If acceptance is recieved during office hours it is deliver, if not in office hours becomes acceptance the next time the office opens. Brinkibon Ltd v Staha Stahl and Thomas B P E Solicitors 2010.
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