Offer

Question 1

Define an Offer

Answer 1

• A definite and communicated statement showing a willingness to contract on certain terms, intending to be legally bound once accepted

Question 2

What are the requirements for an offer

Answer 2

• Clarity: Terms must be definite
• Communication: Must reach the offeree
• Centainty of intention: Must intend to form a contract once accepted

Question 3

What case shows that when your too uncertain it may not be a valid offer

Answer 3

Gibson v Manchester City Council - Council said they “may be prepared to sell” a house. Too uncertain, only an invitation to treat, not a valid offer.

Question 4

What are the different types of offers

Answer 4

• Bilateral Offers: Both parties exchange mutual promises
• Unilateral Offers: A promise in return for a specific act

Question 5

What case shows a unilateral offer

Answer 5

Carlil v Carbolic Smoke Ball - Company promised £100 to anyone who used the product and still caught flu. Unilateral offer accepted by conduct.

Question 6

What are the different types of communication

Answer 6

Express - Directly communicated through written, spoken or digital means
Implied - The terms of the offer are clearly conveyed by conduct or circumstances

Question 7

What case shows an offer that had not been expressly communicated

Answer 7

Taylor v Laird - C worked without informing the employer of the role change. No contract - the offer had not been expressly communicated so there could be no acceptance

Question 8

What case shows an offer that was implied

Answer 8

Bowerman v ABTA - School booked ski trip with an agent. A notice in travel agency window stated they would refund customers if holiday was cancelled. Holiday was cancelled and D refused to pay. The notice was an implied offer.

Question 9

What is an Invitation to treat

Answer 9

A preliminary communication showing willingness to negotiate - not an offer

Question 10

What case shows a flick knife displayed in a window was an invitation to treat

Answer 10

Fisher v Bell - Shopkeeper displayed a flick knife in a window with a price tag. Display was an invitation to treat, invites offers.

Question 11

What case shows an advertisement in a newspaper was an invitation to treat

Answer 11

Partridge v Crittenden - D placed an advert in a magazine offering to sell wild birds. Invitation to treat, simply invited customers to make an offer to buy.

Question 12

What are the different ways an offer can come to an end

Answer 12

• Revocation
• Rejection
• Counter Offer
• Lapse of Time
• Death

Question 13

Explain Revocation

Answer 13

Offeror can revoke the offer any time before acceptance is complete

Question 14

What case shows an offer can be revoked via a third party

Answer 14

Dickinson v Dodds - D offered to sell a house to C, saying the offer would remain open until friday, on thursday C was told by a third party the house had been sold elsewhere. Revocation was valid.

Question 15

What case shows a recovation would not be effective if the offer had already been accepted

Answer 15

Byrne v Van Tienhoven - Offeror posted a letter of revocation, but arrived after oferee accepted offer by post. Recovation was not effective offer had already been accepted.

Question 16

Explain Rejection

Answer 16

• A simple “no” or refusal to accept ends the offer immediately.
• No further acceptance can be made unless a new offer is made

Question 17

Explain Counter Offer

Answer 17

A counter offer is a response to an offer that changes the original terms. By doing this, the offeree rejects and ends the original offer, replacing it with a new one.

Question 18

What case shows a counter offer destroyed the original offer, so it could not be accepted later

Answer 18

Hyde v Wrench - Wrench offered to sell land £1000. Hyde replied offering £950. When Wrench refused, Hyde tried to accept the original £1000 offer. Counter offer destroyed the original offer.

Question 19

What case shows a request for more information is not a counter offer

Answer 19

Stevenson v McLean - A request for more information (“would you accept delivery over 2 months?”) is not a counter offer. Original offer still stands and can be accepted.

Question 20

Explain a Lapse of Time

Answer 20

• After a fixed period stated bu the offeor or after a reasonable time the offer expires

Question 21

What case shows an offer had lapsed due to the passage of time

Answer 21

Ramsgate Victoria Hotel v Montefiore - Montefiore applied to buy shares in june. Company responed in November, Montefiore no longer wished to buy in November. Offer had expired

Question 22

Explain Death

Answer 22

An offer ends if the offeree dies, or if the offeror dies and the offeree is aware of it, unless the offer can still be performed by someone else.

Question 23

What case shows an offer is still valid when the offeree has no knowledge of the death.

Answer 23

Bradbury v Morgan - The Offeror died after making an offer to guarantee a debt. Offeree accepted the offer, not knowing the offeror had died. Offer was still valid.