Offer, Acceptance and Termination

What is an offer

• Expression of willingness to contract with the intention that it shall become binding on the offeror as soon as it is accepted by the offeree

Display of goods

• Fisher v Bell: goods in a shop are not an offer but merely an invitation to treat

Auctions

• Payne v Cave: auctioneer’s call for bids is an invitation to treat

• British Car Auctions v Wright: bidder may retract bid before it is accepted

Advertisements

• adv for goods: invitations to treat (Partridge v Crittenden)

• adv may be offers if they are unilateral (Carlill v Carbolic Smoke Ball)

mere statement of price

• Statement of min price at which party may be willing to sell not amount to an offer (Harvey v Facey)

What is acceptance

• final and qualified acceptance of the terms of an offer

How to make a binding contract

• the acceptance must exactly match the offer

• the offeree must accept all the terms of the offer

Counter offers

• Hyde v Wrench: counter offer also amounts to a rejection of the original offers

• Butler Machine Tool v Excell-o-Corp: any variation to terms have to be accepted

Communication of acceptance

• Entores v Miles Far East Corp: when an instantaneous method of communication is used (text, email, phone) it will take effect where it is received

Felthouse v Bindley

• acceptance of offer has to be communicated as silence is not an offer

Postal Rule

• Adams v Lindsell: acceptance takes place when it is posted regardless of it being delayed, destroyed or lost

Method of acceptance

• Holwell Securities v Hughes: letter must be properly stamped and addressed

• germans can exclude this postal rule and ask for a diff method (receiving notice in writing)

Knowledge of offer

• R v Clarke: can only accept offer that you know exists, if it is accepted for diff purpose = rewards not necessary.

Unilateral contacts

• normal rule for acceptance to the offeror does not apply.

• carrying out stipulated task is enough to constitute acceptance of the offer (Carbolic Smoke Ball)

Revocation (cancellation)

• Bryne v Van Tienhoven: if the offeror wishes to revoke their offer, this must be communicated to the offeree in advance of the offer being accepted

• Dickinson v Dodds: this could be specific or by a 3rd party

Revocation

• Routledge v Grant

• offer can be withdrawn at any time period before it is accepted, even if offeror promised to keep it open for certain period

Revocation (unilateral offers)

• unilateral offers can be revoked by taking reasonable steps like advertising offer is over (Shuey v United States)

• once offeree has commenced performance of unilateral offer, it cannot be revoked (Errington v Errington)

lapse of time

• termination

• when there is no express time limit, an offer is normally open for a reasonable amount of time (Ramsgate Victoria Hotel v Montefiore)