Offer And Acceptance

Front 1

How do you decide if an agreement has been reached between the parties?

Back 1

Smith v Hughes: You need to look at the actions of the parties and objectively access whether the contract has been concluded.

Objectivity promotes certainty for the commercial market

Front 2

What is Lord Clarke's view on accessing the conduct of the parties?

(Flexible Systems v Molkerei)

Back 2

You must not be concerned with the subjective state of mind but what was communicated through his actions

Front 3

How does Howarth access objectivity?

Back 3

1) Detached objectivity

2) Primisor objectivity

3) Promisee objectivity

Front 4

LJ Blackburn; Smith v Hughes

Back 4

If, whatever a man's real intention may be, he so conducts himself that a reasonable man would believe that he was assenting to the terms proposed by the other party, and that other party upon that belief enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other man's terms.

Front 5

Trietel: What is a valid offer?

Back 5

An "expression of willingness to contract on specified terms with the intention that it is to become legally binding as soon as it is accepted by the person to whom it is addressed"

a) Clear, b) Certain, c) Unequivocal

Front 6

What is an offer?

Back 6

It is a statement by one party conveying a willingness to enter into a contract on their stated terms, providing those are accepted.

Taylor v Brewer; offer must be sufficiently certain in its terms to form the basis of a contract

Front 7

What is an invitation to treat?

Back 7

An expression of willingness to enter into negotiations: Gibson v Manchester City Council.

a) Hadn't reached sufficiently certain terms and Manchester City Council hadn't indicated an intention to be bound

Front 8

Gisbon v Manchester City Council

Back 8

Letter saying 'may' be prepared to sell was not considered an offer because the invitation to 'make a formal application' did not satisfy the offer and acceptance model

1) Have the parties reached sufficiently certain & settled terms?

2) Have the parties indicated an intention and readiness to be bound by an agreement?

Front 9

What are 3 examples of situation's being considered invitation's to treat and not an offer?

Back 9

1) Goods in a shop: Fisher v Bell & Pharmaceutical Society v Boots (Pharmacy & Poison Act 1933)

2) Advert: Partridge v Crittendon (Carlill v Carbolic Smoke Ball is the exception)

3) Auction: British Car Auction v Wright

Front 10

What is acceptance?

Back 10

An unqualified expression of assent to the terms proposed by the offeror.

Accessed objectively by looking at the actioon of the arty, despite their true intention (Thoreson Car Ferries v Weymouth Ferries)

Accessed against the 'mirror image' rule

Front 11

How is acceptance communicated?

Back 11

Must be delivered directly to the offeror; Entores v Miles Far East Corp

a) Silence does generally not amount to acceptance (Felthouse v Bindley)

Front 12

Centrovincial Estates v Merchant Investors

Back 12

An offeror under a bilateral contract can't withdraw an unambiguous ofer because he made a mistake which the offeree could not reasonable have known about

Front 13

Postal Rule

Back 13

Adams v Lindsell: Where a letter is properly addressed & stamped, the acceptance takes place when the letter is placed in the postbox.

The acceptance does not have to reach the offeror (Dunlop v Higgins) however if it doesn't reach them because of fault of the offerees then it will not count (Household fire insurance v Grant)

Front 14

How can an offer be terminated?

Back 14

1) Revocation - providing the offer hasn't been accepted (Dickinson v Dodds)

2) Lapse of Time - Quenerduaine v Cole; based on a 'reaosnable' time depending on the subject matter & communication methods

3) Breach of a condition - Financing Ltd v Stimpson

4) Death of a party

Front 15

The effect of a counter-offer

Back 15

Hyde v Wrench: Destroys the original offer so the original offeree cannot force the original offeror to go back and act on those terms

Stevenson v McLean: Correspondence can sometimes be seen as merely inquiring as to the terms of the contract and not a counter-offer

Front 16

Consequence of a mistake as to fact?

Back 16

This situation does not give rise to a remedy if the terms are objectively clear (Tamplin v James)

Front 17

Gibbons v Proctor

Back 17

It was a unilateral contract so the policeman was eligible for the reward even though he wasn't aware of the existence of the promise for money because he provided consideration by providing the information

Front 18

Hartog v Colin Shields

Back 18

A reasonable person in the position of the claimant would have known the offer did not reflect the true intention of the offeror therefore the offeree cannot enforce the agreement