Uos Pmgt5895 Contracts Management - Lecture 03

Front 1

What is an offer?

Back 1

An offer is a clear statement of the terms upon which an offeror is prepared to be contractually bound.
Nielsen v Dysart Timbers Limited [2009]:
An offer is a statement of the terms upon which the offeror is prepared to be bound if acceptance is communicated while the offer remains alive.

Front 2

Can an offer be implied?

Back 2

Yes. Through offerors conduct. The existence of an offer is ascertained by asking whether a reasonable third party would conclude an offer has been made.

Front 3

To form an offer, what elements need to be present?

Back 3

- The offeror must intend to be bound by the offer - Distinguish from request for information or invitation to treat
- The offer must be communicated to the offeree
- The offer may be made to one person, a class of persons, or the whole world
- The offer must contain enough information (certainty) to allow a binding contract to come into existence.

Front 4

What is an invitation to treat?

Back 4

An invitation to treat is not an offer. It is an offer to consider offers.

Front 5

In a shop, where does the offer and acceptance occur?

Back 5

At the till. The products on shelves with prices are invitations to treat only.

Front 6

Is an advertisement an offer or an invitation to treat.

Back 6

Normally just an invitation to treat. If however the ad makes it clear that the placer of the ad intends to be bound then it is an offer.

Front 7

Does an auctioneer make an offer?

Back 7

No, they make an invitation to treat, bidders make offers, and then the auctioneer accepts the offer with the fall of the hammer?

Front 8

In calls for tenders, who makes the offer?

Back 8

The party submitting the tender

Front 9

What is a process contract?

Back 9

If a request for tenders includes a promise of some kind, a process contract is created. For instance, if the request for tenders contain a promise that the lowest bid will be accepted, a process contract arises.

Front 10

How can an offer be terminated?

Back 10

- by revocation by the offeror;
- by rejection by the offeree;
- by lapse of time (after the specified time period or if it’s too long);
- by failure of a condition subject to which the offer was made (e.g. Advertisement of goods for X dollars “while stocks last”);
- by death; or
- Upon making of a counter offer.

Front 11

Does the offer need to be communicated to the offeree?

Back 11

Yes.

Front 12

Can an offer be made to a single person, a class of people or the whole world?

Back 12

Any of those.