Contract Formation: Invitations to Treat - SQE Revise

What are invitations to treat and how do they differ from an offer?

Invitations to treat are expressions of willingness to negotiate, such as advertisements, the display of goods, invitations to tender, and auction sales, while an offer signifies a willingness to enter into a contract.

What does the case of Partridge v Crittenden [1968] establish regarding advertisements?

Advertisements are typically considered invitations to treat.

What exception to the general rule about advertisements was set by the case Carlill v Carbolic Smoke Ball Co?

Carlill established that an exception to the general rule is if the advert constitutes a unilateral offer.

What are the two requirements for a unilateral offer as clarified in Carlill v Carbolic Smoke Ball Co?

(a) A prescribed act; and (b) A clear intention to be bound.

What does Fisher v Bell establish regarding the display of goods for sale?

Goods displayed in a shop window are considered an invitation to treat, even if marked as 'special offer'.

What principle was established in Pharmaceutical Society of GB v Boots Cash Chemists related to self-service stores?

The display of goods on shelves in a self-service store is an invitation to treat.

What did the case Spencer v Harding establish regarding requests for tender?

Spencer v Harding (1870) LR 5 CP 561 established that a request for tender is generally considered an invitation to treat.

What did the case of Harvela Investments Ltd v Royal Trust Co. of Canada (Cl) Ltd [1985] Ch 103 establish regarding invitations to tender?

It established that an invitation to tender can create a binding obligation to accept the highest bid when the terms explicitly indicate so.

What are the conditions under which a binding obligation to consider tenders may arise according to Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council?

(1) Tenders solicited from specified parties; (2) An absolute deadline for submission; (3) Absolute and non-negotiable conditions set by the requesting party.

What is the difference between auctions with and without reserve?

An auction without reserve guarantees the sale to the highest bidder, while an auction with reserve allows the seller to refuse the highest bid.

What is the significance of Warlow v Harrison in relation to auctions?

It confirmed that if an auctioneer promises an auction 'without reserve,' they can be sued for breach of contract if they refuse to sell to the highest bidder.

What happens when an offeree makes a counter-offer?

The original offer is rejected and cannot be subsequently accepted, as established in Hyde v Wrench (1840) 3 Beav 334.

What did the case Stevenson, Jacques & Co v McLean clarify about inquiries made by the offeree?

A question regarding payment structure does not constitute a counter-offer but rather a request for information, allowing the original offer to stand.

Under what circumstances can an offer lapse?

An offer can lapse through the passage of time or the death of a party.

What ruling was established in Payne v Cave regarding the revocation of an offer?

The offeror may withdraw an offer at any time before acceptance.

How is revocation of an offer effective according to Byrne v Van Tienhoven?

Revocation is effective upon actual notice reaching the offeree.

What did Dickinson v Dodds establish regarding the communication of revocation?

Revocation can be communicated through a third party.

What ruling did Errington v Errington & Woods establish about revocation in cases of part performance?

Revocation may not apply if the offeree has partly performed the obligation and is willing to complete it.

Can a unilateral offer made to the whole world be revoked?

Yes, it can be revoked if reasonable steps are taken to inform those who may have seen the offer.