Offer and Acceptance

Offer and Acceptance only.

What is the definition of an offer?

“An expression of willingness to enter a contract on terms which are certain”

If accepted, an offer can become a contract.

What was the point of law in ‘Gibson v Manchester City Council’?

Council said that they “may be prepared to sell” house, and invited Mr G to complete an application form.

The invite was NOT an offer as it lacked certainty.

How does ‘Biggs v Boyd Gibbons’ compare to ‘Gibson v Manchester City Council’

B v BG provides an example of an offer, as it contained clear terms in the wording “For a quick offer… i WILL accept £2600” (Property in exchange for £26000)

What is an Invitation To Treat? (ITT)

An indication of willingness to negotiate and receive offers.

What does ‘Fisher v Bell’ highlight?

Goods in a shop window are invitations to treat.

Is an item on online shop an ITT or an Offer?

An ITT, by adding the item to your basket, inputting payment details and confirming your offer, you are sending an offer. The seller could in theory reject this offer. The offer isn’t usually accepted until the item is dispatched.

What point of law does ‘British Car Auctions v Wright’ show?

What is a representation?

A statement made by one contracting party to another before/ at the time of the contract.

What is Misrepresentation?

“A false or misleading statement of fact, made before or at the time of the contract, which induces the other party the enter the contract.”

Can silence amount to Misrepresentation?

As a general rule, no it cannot (Fletcher v Krell). However, there are some exceptions (Spice Girls v Aprilia)

What are “Half truths”

A type of false statement, it includes parts which are misleading even if there is some truth to it. (Dimmock v Hallett)

What is a Statement of Fact

The statement must be objectively verifiable (true), rather than an opinion or a belief held.

What is the case of “Bisset v Wilkinson?

The case states that an ordinary opinion cannot form the basis of a misrepresentation. In the case the seller of land said it could hold 2000 sheep, but he wasn’t a sheep farmer.

What does the case Esso v Mardon tell us

Statements of opinion made by an expert may be treated as a fact

What does “Edgington v Fitzmaurice” tell us?

A statement of future intention is not a fact, unless it is knowingly false. F told investors their money would be used to extend the business, but company planned to use it to pay off debts, since the company never intended to use the money as suggested, this amounted to a false statement of fact.

What are Vitiation factors?

Even where a contract meets the requirement of offer, acceptance, consideration and intention to create legal relations, it may still not be binding if, at the time the contract was made, certain factors were present which mean there was no genuine consent.

What are the two types of Vitiating factors?

Misrepresentation

Duress

What is recission?

Recission is the special basic remedy for all types of misrepresentation, if it is available. Recission means setting the contract aside. The parties are returned to the positions they were in before the contract was made.

The right to recission may be lost where

Third party now has some rights

Affirmation of the contract has taken place

Impossible to restore parties to original positions

Lapse of time has occurred

What are the 3 types of misrepresentation?

Fraudulent

Negligent

Innocent

What is fraudulent misrepresentation?

False representation made knowingly without belief in its truth, or recklessly.

The claimant must prove D’s state of mind

What is negligent misrepresentation?

Person making the statement failed to take reasonable care to check its accuracy.

Under statute, Misrepresentation Act 1967, s.2(1).

What is innocent misrepresentation?

Where misrepresentation is neither fraudulent or negligent, just an error.