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Offer and Acceptance
| Question | Answer |
|---|---|
| What types of contract are there? | Unilateral - one offers something Bilateral - something for something |
| What is an offer? | Expression of willingness to contract on certain terms made with the intention that it shall become binding upon acceptance. |
| What are the elements of an offer? | 1. Clear terms to to allow acceptance to result in contract 2. Offeror intends to be bound by accepted offer |
| Unilateral Contract | Carlill v Carbolic Smokeball |
| Requirement for valid contract | Agreement, Consideration, Intention to create legal relations, no vitiating elements |
| Harvey v Facey | A and B telegram exchanfe B did not answer A's question regarding desire to sell No contract, B's 2nd telegram was an offer |
| Gibson v Manchester City Council | MCC sent to G that they 'may be prepared to sell house 2725...' To make formal application to buy house, complete form. G sent form MCC changed House Sales Policy G claimed contract, that MCC sent offer Court said 'may be prepred to' |
| Baird Textile Holdings v Marks and Spencer | M&S bought from B for many years, suddenly terminates. B sues, claims implied contract need for reasonable notice Court said no such thing, implied only done when necessary to facilitate business |
| Display of Goods in Shop is | generally inv to treat (display) |
| Display of Goods in Shop Cases | Fisher v Bell Pharmaceutical Society v Boots Cash Chemists |
| Pharmaceutical Society v Boots Cash Chemists | Display of medicine is inv to treat Boots displayed medicine without pharmacists PS sued saying not controlling medicine sales CA says display was inv to treat. Offer by customer at counter, pharamcist can deny then |
| Auctions is | generally inv to treat (Auction) |
| Auctions cases | Harris v Nickerson Payne v Cave Barry v Davies |
| Harris v Nickerson | Ads saying goods to be auctioned is not an offer A saw ad, travelled there, no auction. Can't claim damages |
| Payne v Cave | Acceptance is when hammer falls Person withdrew before hammer fell, no contract |
| Barry v Davies | 'without reserve' means that there is a offer auctioneer tried to refuse to sell cause price too low. court reject, without reserve means smth |
| Advertisments are | generally inv to treat (ad) |
| Advertisements Cases | Carlill v Carbolic |
| Carlill v Carbolic | Ads are generally inv to treat, unless its specific. Carbolic ended up making a unilateral contract to the world Carbolic showed its authenticity by depositing the money in a bank. 1000 pounds Do the specified action and you will get what they promised |
| Tenders are | generally inv to treat (tender) |
| Tenders Cases | Spencer v Harding Harvela Investments v Royal Trust co of Canada Blackpool Aero club v Blackpool BC Great Northern Railway v Whitham |
| Spencer v Harding | Tenders do not have to sell to the highest seller unless stated. not an offer H did tender. highest tender by S. S sued when H sold to someone else. Court said no claim |
| Harvela Investments v Royal Trust co of Canada | Reeferential bids are not valid R selling shares. Sir Leonard offered 2.1 million pounds, or 100 thousand pounds more than anyone else. H offered 2.175 million. won the bid. Court held that referential bids invalid |
| Blackpool Aero club v Blackpool BC | A unilateral offer to consider any conforming tender may exist. BBC ran tender. BAC tendered correctly, by mistake, BAC tender considered late and not considered. |
| Great Northern Railway v Whitham | consideration exists in unilateral contracts W won tender. G ordered, W refused to supply. W said no consideration. but there was. every time P placed an order it was a binding contract |
| What is Acceptance? | absolute, unconditional acceptance |
| How can one do acceptance? | May be done through communication or conduct |
| Bilateral Acceptance | Promise to perform |
| Unilateral Acceptance | Conduct is acceptance |
| Whats required for acceptance | unconditional intention to accept |
| Intention to accept cases | Brodgen v Metropolitan Railway |
| Brogden v Metropolitan Railway | contract can be accepted by conduct draft offer was given and not expressly accepted. B suddenly acted on it, MR claim no contract. court held that ordering was point of acceptance |
| Hyde v Wrench | Acceptance that changes conditions/terms is not acceptance. Its counter offer. Destroys original offer. W wanted to sell for 1000, H suggested 950. W reject. H okay, 1000. W now refuses to sell. H sues, no contract |
| Acceptance as unconditional cases | Hyde v Wrench Day Morris Associates v Voyce |
| Acceptance with enquiry cases | Stevenson v Mclean |
| Stevenson v Mclean | Enquiry does not amount to counter offer M telegraphed S offering sale. S enquired on delivery schedule. M sold all pieces. BUT S sent acceptance before M sent withdrawal. So acceptance was accepted. M pay damages |
| What is it when each party tries to contract on its term and sends back and forth different conditions while trying to accept/offer? | Battle of the forms |
| Battle of the forms cases | Butler Machines Tool v Ex-Cell-O Corporation |
| Butler Machines Tool v Ex-Cell-O Corporation |