Offer and Acceptance Flashcards

Flashcards covering key terms, case law, rules, and exceptions regarding Offer and Acceptance in contract law.

Bilateral contract

A type of contract where both parties agree to something.

Unilateral contract

A contract where only one party assumes an obligation, such as promising to pay without receiving a reciprocal promise of performance.

Great northern railway v witham

A case demonstrating a unilateral contract where 100 pounds was offered to a person to walk from London to York, where the offeror promised to pay but the offeree did not promise to walk.

Offer

A willingness to enter into a contract on stated terms which in return can be accepted or rejected, communicated orally, in writing, or by conduct.

Carlill v carbolic smoke ball company (1893)

Established that an offer in a unilateral contract can be made to the public at large (the world at large). flu company story

Storer v Manchester city council (1974)

Demonstrated that a letter containing clear and certain terms regarding payment, signature, and other details constitutes a binding offer.

Invitation to treat

A willingness to enter into negotiations which will lead to an offer at a later date.

Gibson v Manchester city council (1979)

Held that a statement using uncertain language such as 'may be prepared to sell' is an invitation to treat rather than an offer.

Lefkowitz v great Minneapolis surplus store (1957)

Ruled that an advertisement offering items on a 'first come first serve' basis constitutes an offer because the terms are clear and precise.

patridge v Crittenden

Held that an advertisement for a bilateral contract (selling birds and fox) is an invitation to treat due to limited stock, preventing liability under the Protection of Birds Act 1954.

Greainger and sons v gough

Held that a price list pamphlet for wine is an invitation to treat rather than an offer because of limited stock.

Fisher v bell (1960)

Established that displaying goods in a shop window (e.g., a flick knife) is an invitation to treat, not an offer for sale.

Pharmaceutical society of great Britain v boots cash chemist

Held that displaying prescription medicines on self-service shelves is an invitation to treat, and the customer makes the offer when presenting items at the cash desk.

Harris v nickerson (1873)

Established that the advertisement of an auction sale is an invitation to treat.

Harvela investments ltd v royal trust co of Canada ltd

Established an exception in tender sales where calling for tenders amounted to an offer because the party expressly undertook to accept the highest bid.

Ramsgate Victoria hotel v Montefiore (1866)

Established that if no time for acceptance is specified in an offer, the offer will lapse after a reasonable time.

financing limited v Stimson (1962)

Established that an offer will lapse if a pre-condition attached to it fails or is not met.

Counter offer

A response to an offer that introduces new terms instead of accepting all proposed terms, which kills (terminates) the original offer.

Stevenson Jaques and co v Mc clean (1880)

Held that asking a request for further information is not an acceptance, rejection, or termination, and leaves the offer capable of acceptance.

Payne v cave (1789)

Established that an offer cannot be withdrawn after acceptance has occurred.

Byrne and co v leon van tienhoven

Established that notification of the withdrawal of an offer must be communicated by the offeror to the offeree prior to acceptance.

Brimnes (1975)

Ruled that there is no requirement for a withdrawal of an offer to actually be read by a specific person; it is effective once it reaches the party.

Dickinson v dodds

Established that notice of withdrawal of an offer is effective if communicated through a reliable third party.

Errington v errington

Established that an offer for a unilateral contract cannot be revoked once the offeree has commenced performance.

Shuey v USA

Ruled that revocation of a unilateral offer made to the public is effective if communicated through the same medium as the original offer.

Acceptance

Unconditional agreement to all the terms of an offer, communicated orally or in writing.

Postal rule

An exception to the general rule of acceptance stating that acceptance by post takes effect when posted rather than when received.

Adam v Lindsell (1818)

The foundational case establishing the postal rule, where a letter of acceptance posted on the 5th was valid upon posting even though the goods were sold to another party on the 8th.

Henthorn v Fraser

Established that the postal rule only applies where it was reasonable to use the post, such as when parties reside at a distance.

Holwell securities ltd v Hughes

Established that the postal rule will not apply if the offeror expressly excludes it as a term of the offer.

Entores v miles far east corp

Held that for instantaneous methods of communication (such as telephone), the postal rule does not apply and acceptance must be validly received.

Thomas v BTE solicitors (2010)

A High Court case establishing that the postal rule does not apply to email communications.

Felthouse v bindley

Established that acceptance cannot be communicated or imposed through silence.

Battle of forms

A series of offers and counter-offers between contracting parties, governed by the 'last shot rule' where the terms of the last accepted form apply.

Butler machine tool ltd v ex cell co corporation ltd

Demonstrated the battle of forms concept and the application of the last shot rule.

Manchester diocesan council for education v commercial and general investments ltd

Ruled that if a mode of acceptance is prescribed in an offer, following that method or a better/equally effective method constitutes valid acceptance.

Williams v Carwardine (1833)

Held that a party aware of an offer is entitled to the reward upon fulfilling the terms, regardless of their personal motive.

Gibbons v proctor

Ruled that acceptance is valid if the performing party becomes aware of the offer before the information reaches its final destination.

R v Clarke

Established that if a party claiming a reward has forgotten about the offer at the time of performance, they are not entitled to the reward.