Contract Law: Offers and Invitations to Treat

These flashcards cover key concepts related to offers, invitations to treat, and the related legal principles in contract law.

Offeror

The party that presents an offer in a contractual agreement.

Offeree

The party who is the potential acceptor of the offer in a contractual agreement.

Storer v Manchester City Council (1974)

Case that confirmed an offer is an expression of willingness to contract on specified terms with intention to bind upon acceptance.

Reasonable man standard

An objective standard used by courts to assess whether an offeror has expressed a willingness to contract.

Invitation to Treat

An indication that a party is open to negotiation or an invitation for another party to make an offer.

Gibson v Manchester City Council (1979)

Established that phrases indicating a party 'may be prepared' to enter a contract suggest an invitation to treat, not an offer.

Pharmaceutical Society of Great Britain v Boots Cash Chemists (1953)

Case confirming that a display of goods in a shop is an invitation to treat.

Multi-acceptance principle

Principle stating that if an advertisement is considered an offer, many individuals could potentially accept it, leading to breaches for limited items.

Carlill v Carbolic Smoke Ball Co Ltd (1893)

Established that an advertisement can be considered an offer if clear terms, conditions, and an intention to create legal relations are present.

Unilateral contract

A contract where the offeror makes a promise in exchange for an act by any offeree, seen as a contract with the whole world.

Tender

A request for specific goods or services that is treated as an invitation to treat.

Routledge v Grant (1828)

Established that an offer can be revoked at any time prior to acceptance.

Counter-offer

An offer made in response to another offer, which effectively revokes the original offer.

Revocation

The act of withdrawing an offer which must be communicated to be effective.

Acceptance

The expression of agreement to the terms of an offer, completing a contract.

Automatic revocation

An offer revokes itself after a reasonable lapse of time, assessed on a case-by-case basis.