OFFER AND ACCEPTANCE (ready to be study)

invitation to treat

a sign the that person is open to doing business

In order for a promise to become a contract, there are 4 requirements (the building blocks of a contract)

offer

acceptance

consideration

intention

parties involved in an offer

offeror - the party making the offer

offeree- the party receiving the offer by the offeror

The Lapse and Revocation of an Offer- An offer lapses when the earliest of the following events occur:

the offeree fails to accept within the specified time period;

he offeree fails to accept within a reasonable time, if there is no specified time period; or

when either party (offeror or offeree) loses capacity prior to acceptance.

Revocation terms:

needs to be communicated or the offeree needs to be aware that the offeror can no longer complete the deal, and therefore the offer is revoked.

ACCEPTANCE rules

must be certain and unconditional.

must be positive act either by verbal or by conduct

silence is not a form of acceptance unless its been used in previous transactions and agreed upon

elements of acceptance- (Carlill v Carbolic Smoke Ball Co., [1892] 2 QB 484)

1. Acceptance by conduct: Acceptance does not need to be communicated if the offer allows acceptance through actions.

2. Offer to a group: Offers can be made to the public or a specific group. Only those addressed can accept.

3. Revocation: An offer cannot be revoked once acceptance by conduct has occurred

Four parts to analyzing the formation of a contract:

1. who made the offer

2. when was it communicated

3. who accepted the offer

4. when was it accepted